Santos Posts Record Production in Q1

Wednesday, April 17, 2019

Australia's No.2 independent gas producer Santos Ltd on Wednesday posted record quarterly production, boosted by its acquisition of Quadrant Energy assets, while sales revenue jumped 28 percent.

Santos said production for the quarter ended March 31 rose to a record 18.4 million barrels of oil equivalent (mmboe), up from 13.8 mmboe last year.

Revenue came in at $1.02 billion, the second-highest quarterly revenue on record, it said.

Santos acquired Quadrant Energy last year in a $2.15 billion deal, snapping up Quadrant's 80 percent stake in the promising Dorado oil find.

"In the second quarter, we look forward to continued drilling success, including commencing appraisal of the ... Dorado oil discovery offshore Western Australia", said Chief Executive Kevin Gallagher.

Revenue growth was slightly held back by lower oil and liquefied natural gas (LNG) prices, with domestic gas prices also lower due to pricing adjustments on a contract booked in the previous quarter and cyclone-related shutdowns, Santos said.

Net debt as at March 31, 2019 was $3.4 billion, down from the prior quarter, while the company also paid off $1.1 billion in gross debt during the quarter.

Santos' net debt rose after the Quadrant buy, which it funded through a combination of cash and new debt.

The company has radically restructured its business in the last two years by divesting non-core Asian assets and implementing sharp cost cuts to slash debt, shielding itself from takeover offers.

Shares of Santos, which was founded in 1954, have risen about 29 percent this year, as of last close.


(Reporting by Rashmi Ashok; editing by Richard Pullin)

Categories: Energy LNG Offshore Energy Industry News Production Natural Gas Australia/NZ

Related Stories

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

Eni-Petronas Gas Joint Venture Up for Launch in 2026

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

Seatrium Signs FLNG Vessel Upgrade Deal for Golar LNG

Norwegian Oil Investment Will Peak in '25

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

CNOOC Finds Oil and Gas in South China Sea

Santos and QatarEnergy Agree Mid-Term LNG Supply

Current News

Malaysia’s Petronas and Oman’s OQEP Strengthen Oil and Gas Ties

Southeast Asia’s 2GW Cross-Border Offshore Wind Scheme Targets 2034 Buildout

Pharos Energy Kicks Off Drilling Campaign Offshore Vietnam

Viridien to Shed More Light on Malaysia’s Offshore Oil and Gas Potential

US Pressure on India Could Propel Russia's Shadow Oil Exports

Energy Drilling’s EDrill-2 Rig Starts Ops for PTTEP in Gulf of Thailand

RINA Wins FEED Contract for Petronas’ Flagship CCS Project in Malaysia

ABL Secures Rig Moving Assignment with India's ONGC

Pakistan, Türkiye Deepen Oil and Gas Ties with Offshore Indus-C Block Deal

Eni-Petronas Gas Joint Venture Up for Launch in 2026

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com