Santos sees H1 profit rise due to record production figures

Australian LNG player Santos has reported a rise in profit for the first half of the year compared to the corresponding period in 2018 due to record production figures and a rise in sales volumes.

Santos said on Thursday that its net profit was $388, which rose by a massive 273 percent when compared to H1 2018’s profit of $104 million.

The company’s underlying profit reached $411 million, almost doubling from the $217 million in 2017.

Total revenue stands at $2,043 and is up 18 percent on the first half of 2018 due to higher LNG prices and volumes with the resumption of full production from PNG LNG following the earthquake in last year’s first half.

The revenue rise and higher gas volumes were also helped by the acquisition of Quadrant Energy.

Last month, LNG World News reported that record production boosted Santos’ first-half revenue with reported production of 37 mmboe in the first six months of 2019, a record for the company, 32 percent above the figures reported in the corresponding period last year.

Sales volumes of 45.2 mmboe were up 19 percent and sales revenues up 18 percent to $1,97 billion.

Santos managing director and CEO Kevin Gallagher said: “Today’s results demonstrate the successful integration of our Western Australian business following the acquisition of Quadrant.

“I am also pleased with the progress we are making toward FID on Barossa, including the award of major contracts and exclusive negotiations for the supply of backfill gas to Darwin LNG. We are in advanced discussions with a number of LNG buyers on firm offers for Barossa offtake volumes.

“In PNG, our signing of a binding letter of intent to farm-in to P’nyang marked an important milestone towards the expansion of the PNG LNG plant. Also, GLNG remains on track to meet the six million tonne annualized LNG sales run-rate, including LNG volumes redirected to the domestic market, by the end of 2019.

“All of this growth activity is consistent with reaching our goal of more than 100 million barrels of oil equivalent production by 2025.“