This represents a 25 per cent increase compared to the previous quarter and a 99 per cent increase from 2021. With 13 LNG cargoes sold, the company also generated over $1.16 billion in free cash flow, up 186 per cent from 2021.
Santos managing director and CEO Kevin Gallagher said that the increase in revenue was driven by a combination of stronger commodity prices and higher sales volume.
“By designing our portfolio to provide strong cash flows through 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.
“Today’s results demonstrate that our business has the size, scale and cash flows to enable Santos to deliver stronger shareholder returns.”
Santos’s strong balance sheet is expected to support growth and higher returns. Both the Barossa and Moomba projects are progressing on schedule and within budget, and the successful oil discovery at Pavo has also increased the company’s resource size and will may provide a low-cost tie-back to Dorado.
“Consistent with our strategy, our next stage of growth will be disciplined and phased appropriately,” Gallagher said. “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.”
The 2022 Climate Change Report has also confirmed that Santos is well-positioned to make the global transition toward cleaner energy.