SANTOS managing director and chief executive officer Kevin Gallagher says the company has delivered record production, sales revenue and free cash flow in the first quarter, demonstrating the strong performance of the base business and strategic benefits of its diverse portfolio.
Strong production combined with higher commodity prices delivered record quarterly free cash flow of US$865 million (about K3.03bil), an increase of 186 per cent from the corresponding period last year.
“By designing our portfolio to provide strong cash flows throughout the commodity price cycle, our disciplined, low-cost operating model has positioned us to take full advantage of the increase in commodity prices,” Gallagher said of the Australian oil and gas producer which merged with PNG’s Oil Search last year.
“Today’s results demonstrate that our business has the size, scale and cash flows to enable Santos to deliver stronger shareholder returns.”
Gallagher said the company experienced growth mainly in its Australian projects.
“Consistent with our strategy, our next stage of growth will be disciplined and phased appropriately.
“The Barossa project is 33 per cent complete and making excellent progress, while the Moomba carbon capture and storage project will deliver a step-change in our emissions profile when it comes online in 2024,” Gallagher said.
“Our goal is to deliver superior shareholder returns while being a global leader in the transition providing cleaner energy and clean fuels that are affordable and reliable.”
Record quarterly production, sales revenue and free cash flow saw Santos achieve a record production of 26 million barrels of oil equivalent (mmboe) in the first quarter.
Stronger commodity prices combined with higher sales volumes delivered record quarterly sales revenue of US$1.9 billion (about K6.66 billion), up 25 per cent compared to the prior quarter and 99 per cent higher than the corresponding period in 2021, Gallagher said.
The company generated a record US$865 million (about K3.03 billion) in free cash flow in the quarter, up 186 per cent on the corresponding period and sold 13 LNG cargoes sold in the period.
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