💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Santos quarterly revenue steady as LNG output ramps up

Published 22/04/2016, 09:56 am
© Reuters.  Santos quarterly revenue steady as LNG output ramps up
STO
-
NG
-

MELBOURNE, April 22 (Reuters) - Australia's Santos Ltd STO.AX reported a 1 percent rise in first quarter revenue as it stepped up coal seam gas sales to its Gladstone liquefied natural gas (LNG) plant, offsetting a collapse in oil and gas prices.

Sales volumes in the March quarter rocketed 40 percent to 21.3 million barrels of oil equivalent (mmboe).

Revenue inched up to A$835 million from A$825 million in the period a year earlier, roughly in line with a forecast from RBC, as its average realised price fell 28 percent.

Train 1 at Gladstone LNG, which shipped its first cargo last October, produced at an annual rate of 3.8 million tonnes a year in the March quarter, and Santos said it expects to begin producing LNG from the second unit at Gladstone this quarter.

Santos' chief executive, Kevin Gallagher, who took the reins in February, days after the company's shares hit a 23-year low, said he remained focused on how to position the company to withstand weak oil prices.

"We will continue to look for opportunities to lift productivity and reduce costs to drive long-term value for shareholders," he said in a statement.

The company reaffirmed it expects to sell between 76 and 83 mmboe this year.

Shares in Santos have jumped more than 80 percent in recent months following a recovery in oil prices and are currently at a near six-month high at A$4.63.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.