Photo credit: SONALI PAUL
Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered record production, sales revenue and free cash flow in the first half of 2022, demonstrating the strong performance of the base business and strategic benefits of our diverse portfolio, despite a number of major planned shutdowns in the second quarter.
Strong production combined with higher commodity prices delivered record first half free cash flow of US$1.7 billion, an increase of 199 per cent from the corresponding period last year.
“Santos is positioned as a leading and reliable LNG supplier into Asia and we are well placed to take advantage of growing Asian demand for LNG, which is forecast to double by 2050,” Mr Gallagher said.
“At the same time, we supported the domestic gas market during a period of extreme demand by diverting gas from GLNG and committing to a fifth drilling rig in the Cooper Basin during the quarter.
“Despite the period of price and demand volatility, Santos domestic gas customers paid significantly less than that paid by international customers. These domestic prices are reflective of the long-term contracts that almost all of our Australian customers are on, rather than much publicised spot domestic market prices, which make up approximately only 10 per cent of the east coast gas market.
“Our new capital management framework announced in April combined with strong free cash flows position us well to provide returns to shareholders at the half-year results in August.”
Article courtesy of Santos. Full report can be found HERE
