Santos Revenue Down. Says Has Strong Liquidity Position

Shriya Ramakrishnan
Thursday, April 23, 2020

Australia's Santos Ltd posted a 13% drop in first-quarter revenue on Thursday due to lower realized prices for oil and gas, but said it had sufficient liquidity and debt headroom to weather the recent crude price crash.

The country's second-largest independent gas producer said revenue for the quarter ended March 31 fell to $883 million from $1.02 billion a year ago. The figure was lower than the brokerage RBC Capital Markets' forecast of $912 million.

Average sales prices for its liquefied natural gas (LNG) amounted to $8.88 per metric million British thermal unit (mmBtu), compared to $10.79 per mmBtu a year earlier.

Demand destruction due to the coronavirus pandemic and a Saudi-Russia price war in March have upended energy markets this year, with crude prices sinking below $30 a barrel.



Australian LNG companies, which sell most of the commodity through long-term oil-linked contracts, have delayed investments in major growth projects to cope with the collapse in crude prices.

Last month, Santos cut its full-year capital spending by $550 million and deferred an investment decision on its $4.7 billion Barossa gas project off northern Australia, in which it recently sold a stake to Japan's JERA.

"The current environment is a time for discipline. We have a strong liquidity position with over $3 billion available and we have sufficient headroom in our debt covenants for a number of years at current oil prices," Chief Executive Officer Kevin Gallagher said.

Santos produced 17.9 million barrels of oil equivalent (mmboe) during the period, down from 18.4 mmboe last year.

The Adelaide-based firm raised its annual output forecast to between 81 mmboe and 89 mmboe, as it expects to complete the acquisition of ConocoPhillips' northern Australia business by the end of the first half of 2020.


 (Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Maju Samuel)

Categories: Finance Energy LNG Industry News Production Australia/NZ

Related Stories

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Woodside Agrees Long-Term LNG Supply with Petronas Unit

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

BW Opal FPSO Vessel set for Work off Australia

Woodside to Shed Some Trinidad and Tobago Assets for $206M

CNOOC Starts Production at Two New Oil and Gas Projects

All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

Valeura Wraps Up Infill Drilling Campaign in Gulf of Thailand

Current News

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

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