Santos triples half year profit
Energy operator Santos’s jump in profit follows higher output and LNG prices, and the integration of Quadrant Energy.
Energy operator Santos has posted a tripling in first half net profit on higher output and LNG prices and the integration of Western Australian gas producer Quadrant Energy.
Net profit rose to $US388 million ($571m) for the first six months to June 30 - beating a $US367m forecast from RBC - and compared to $US104m in the same period last year.
Underlying profit rose 89 per cent to $US411m underpinned by a 18 per cent lift in product sales to $US1.97bn.
The interim dividend payout also jumped 71 per cent to US6c per share from US3.5c per share with net debt falling to $US3.35bn.
Santos’ capital spending for 2019 was lowered to a $US950m to $US1.05bn range from a prior $US1.1bn target.
The company is targeting final investment decisions on Barossa and also says it is looking to cement a deal on the P’nyang LNG expansion in Papua New Guinea with partners including Oil Search.
“All of this growth activity is consistent with reaching our goal of more than 100m barrels of oil equivalent production by 2025,” Santos chief executive Kevin Gallagher said.