Santos Posts Record Revenue as LNG Prices, Volumes Soar

Thursday, October 20, 2022

Australia's Santos Ltd said on Thursday its third-quarter revenue jumped over 88% to a record high on higher sales volumes and as a global energy crunch boosted liquefied natural gas (LNG) prices.

The Adelaide-based company has benefited from a tightening global LNG market with potentially a colder winter in Asia and higher LNG prices in Europe amid Russia choking gas flows to Europe.

Santos narrowed its production forecast to between 103 million barrels of oil equivalent (mmboe) and 106 mmboe from 102 mmboe to 107 mmboe, and its sales volume forecast to between 110 mmboe and 114 mmboe from 110 mmboe to 116 mmboe.

The country's No. 2 independent gas producer reported revenue of $2.20 billion for the three months ended September, beating brokerage UBS' estimate of $2.14 billion. It reported revenue of $1.14 billion a year earlier.

Santos said its average realized LNG price rose 61.8% from the previous quarter to $16.76 per metric million British thermal unit (mmBtu) in the three months to September.

Production for the quarter came in at 26.1 mmboe, as compared with 21.9 mmboe last year.


(Reuters - Reporting by Upasana Singh and Navya Mittal; Editing by Vinay Dwivedi)

Categories: LNG Industry News Natural Gas Australia/NZ

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