Santos reports 23% jump in sales revenue in Q4
Australian energy company Santos on January 19 reported a 22.9% year/year increase in Q4 sales revenue thanks to surging oil and gas prices.
The company’s revenue during the quarter came in at $1.88bn compared with $1.53bn a year earlier. The Q4 revenue was, however, lower than Q3 revenue of $2.15bn primarily due to lower LNG, domestic gas and crude oil sales volumes and lower liquids prices.
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Santos, which merged with Oil Search in 2021, said output in Q4 fell 2% over Q3 to 25.6mn boe, but was higher than 22.9mn boe reported in the previous year.
Santos' 2022 full-year revenue stood at a record $7.8bn, up 65% from the previous year. The full-year production was 103.2mn boe, up 12% yr/yr. Meanwhile, the company has trimmed the production guidance for 2023 due to the shutdown of the John Brookes platform in Western Australia.
“2023 production is now expected to be in the range of 89-96mn boe (previously 91-98mn boe), primarily due to the temporary shutdown of the John Brookes platform in Western Australia extending to around late-January/early-February, combined with a delay in commencement of production from the Spartan field into the second quarter due to the repair works at John Brookes,” Santos said.
The 2023 guidance includes PNG LNG at a 42.5% working interest. Santos said the guidance will be revised once the expected sell down of the 5% interest has been completed. The company last month agreed to extend the exclusivity period for Kumul Petroleum's deal to buy a 5% stake in the PNG LNG project to April 2023.
Santos had in September received a binding conditional offer from Kumul to acquire a 5% interest in PNG LNG for an asset value of $1.4bn, including a proportionate share of PNG LNG project finance debt of approximately $0.3bn. The exclusivity period was initially open until the end of December.