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Oil price falls cut Santos first-half revenue 6pc

Energy giant Santos has announced a slide in first-half sales revenue, despite record production numbers.

Santos chairman Peter Coates and CEO Kevin Gallagher. Pic: Nick Clayton
Santos chairman Peter Coates and CEO Kevin Gallagher. Pic: Nick Clayton

Energy giant Santos has announced a 6 per cent slide in sales revenue for the first half, despite delivering record production numbers.

The company said first-half sales revenue filtered through at $US1.19 billion ($A1.59bn), off 6 per cent compared to last year’s corresponding number of $US1.26bn, due to weaker oil prices.

The numbers represented the first time the company has reported in US dollars after announcing a shift last week to offer a better comparison against global rivals.

The numbers came despite a 10 per cent jump in output to 31.1 million barrels of oil equivalent, with the 29 per cent tumble in realised oil prices to $US42.79 a barrel weighing on its receipts.

For the second quarter, production rose 8 per cent to 15.5 million barrels, while sales revenue slid 3 per cent as it recorded an average oil price of $US49.21.

Santos chief executive Kevin Gallagher said the group had begun to realise benefits from a cost-cutting strategy, with production costs off 15 per cent and capex down 58 per cent for the six months to June 30.

“There is a lot of work ahead of us but today’s results show we are heading in the right direction,” he said.

The South Australian-based energy group also reaffirmed its full-year guidance for production of 59-63 million barrels of oil equivalent and sales of between 76 and 83 million barrels.

It will release its first-half financials on August 19.

At 11am (AEST), Santos shares dipped 0.71 per cent to $4.865, against a modest 0.2 per cent slide for the broader market.

Read related topics:Santos

Original URL: https://www.theaustralian.com.au/business/mining-energy/oil-price-falls-cut-santos-firsthalf-revenue-6pc/news-story/b7bf4eea27646edf0dc557fa00574811