Santos saw strong cashflow and operating highlights during the second quarter, which ended 30 June.
Year to date, the company has sold roughly 2.6 million tonnes of LNG to international customers, and 97PJ to the domestic gas market. This has yielded Santos roughly $1.1 billion in free cash flow, positioning it for a solid second half of the year.
Santos also reported strong operational results from many of its assets. PNG LNG achieved good LNG volumes during the quarter, driven by high facility reliability (>95 per cent).
In Western Australia, domestic gas production increased by 15 per cent compared to the first quarter, driven by successful John Brookes well intervention campaign, steady production from Halyard-2, and strong reliability at Varanus Island, averaging 98 per cent for the first half.
Gladstone LNG clocked record daily upstream production from Scotia field of 110TJ per day, with Roma field reporting 215 TJ per day.
Santos CEO Kevin Gallagher said the company’s production and cash generation this quarter reflects the strength of its diversified portfolio, disciplined operating model and execution excellence in our major development projects.
“We continue to see very strong demand and premia for high heating-value LNG from projects such as Barossa and PNG LNG, as well as for reliable regional supply,” he said.
“Santos’ diversified LNG contract mix provides the flexibility to adapt to evolving market dynamics and capture value-accretive opportunities.
“Our recent contract with QatarEnergy Trading LLC demonstrates our ability to leverage the flexibility of our LNG portfolio to achieve great outcomes for Santos and our customers.”
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