Oz Santos Sees 18% Drop in Q2 Revenue

Australian oil and gas explorer Santos July 23 reported an 18% yr/yr drop in revenue for the three months to June 30 (Q2 2020) owing to a drop in realised oil, gas and LNG prices.

The company’s sales revenue fell to US$785mn (AU$1.1bn) in Q2 from US$959mn a year earlier. Average realised LNG price during the quarter was US$8.27/mn Btu compared with US$9.09/mn Btu is the same quarter of last year. Average realised oil price was US$30.78/barrel, down from US$79.21/b in the year ago period.  The company realised an average price of US$3.82/gigajoules for the gas sold domestically, down 13% yr/yr, Santos said. 

Santos said its sales volume in Q2 was 24mn boe compared with 22.4mn boe in the corresponding quarter of last year. The company reported a record output of 20.6mn boe, up from 18.6mn boe last year. “The strong production result was driven by higher domestic gas production in Western Australia, continued strong onshore production and a higher equity interest in Bayu-Undan following completion of the ConocoPhillips acquisition,” it said. The company has updated its annual production forecast to between 83-88mn boe, from its earlier range of 81-89mn boe. 

Earlier this week, Santos announced a non-cash impairment charge in the range of US$490-560mn after tax (US$700-800mn before tax) in the six-months to June 30 thanks to Covid-19 induced drop in oil and gas prices.