Santos Ltd. has reported $1.4 billion in gross sales income for the primary quarter of 2024 with 23.2 million barrels of oil equal (MMboe) bought.
Each figures mark a fall from the prior quarter and the identical three-month interval a 12 months in the past, based on outcomes launched by the Australian exploration and manufacturing firm. Santos’ gross sales volumes for liquefied pure fuel (LNG) within the opening quarter of 2024 totaled 1.4 million tons. Gross sales volumes for crude oil stood at 1.5 million barrels.
Whereas volumes decreased, Santos noticed a quarter-on-quarter rise in its common promoting worth for LNG from $12.33 per million British thermal unit (MMBtu) within the October–December 2023 interval to $12.68 per MMBtu within the January–March 2024 interval. Santos’ common realized worth for liquefied petroleum fuel additionally rose sequentially. Costs for each merchandise decreased by year-ago comparability.
Santos’ common realized oil worth elevated each by prior-quarter and prior-year comparisons to $89.14 a barrel.
Upstream, Santos produced 21.8 MMboe, down from the prior quarter and the identical quarter 2023. Santos cited “extreme climate occasions and deliberate upkeep actions”.
Santos generated $692 million in free money move from operations. Capital expenditure totaled $759 million. Santos didn’t disclose its internet revenue and different monetary metrics.
“The primary quarter introduced sturdy free money move which supplies a stable basis for the 12 months forward”, managing director and chief government Kevin Gallagher mentioned in an announcement. “It positions us properly to fund shareholder returns, backfill and maintain our current enterprise, full our main tasks and develop our Santos Power Options enterprise”.
The Barossa Fuel Mission, which is able to provide an current liquefaction facility in Australia’s Northern Territory, reached 70.6 % completion as of March, based on Santos. The part floating manufacturing, storage and offloading unit was on observe for supply from Singapore within the first quarter of 2025, Santos mentioned.
In america, the Pikka oil subject in Alaska state reached 47 % completion, Santos mentioned. The primary part targets the Nanushuk 2/3 reservoirs, which include confirmed and possible reserves of 397 million barrels gross (165 million barrels share for Santos). Found 2013, Pikka is anticipated to begin manufacturing 2026.
“Barossa and Pikka are world-class tasks that will probably be transformative for Santos and set the corporate up with long-term, secure money flows for the subsequent 10-15 years at the very least”, mentioned Gallagher.
In the meantime, Santos’ Moomba Carbon Seize and Storage (CCS) Mission in South Australia was 85 % full as of the tip of the quarter. Commissioning actions have began, Santos mentioned.
“Our Moomba CCS Mission is on observe for first injection of CO2 [carbon dioxide] this 12 months and will probably be a game-changer for decarbonizing our personal operations in addition to opening alternatives for Santos to offer aggressive decarbonization companies to prospects and third events, significantly in hard-to-abate sectors similar to metal, cement and aviation”, Gallagher mentioned.
The chief government added, “Our focus for 2024 is continuous to drive the disciplined low-cost working mannequin throughout the enterprise and the execution of Barossa, Pikka and Moomba CCS tasks while sustaining a robust steadiness sheet”.
Santos earlier introduced an settlement with Liberty Major Metals Australia Pty. Ltd. “to enter into discussions for fuel provide mixed with carbon seize and storage alternatives to help the inexperienced metal transformation of the Whyalla steelworks”.
The memorandum of understanding features a pre-feasibility research of “CCS alternatives aimed toward abating emissions from the Whyalla iron and metal works”, Santos mentioned on the time in a press launch February 25.
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