Santos reported record production, revenue and free cash flow in the first half of 2022.
The company reported record first-half revenue of $3.8 billion (K13.4 billion), up 85%, and record free cash flow of $1.7 billion ( 5.9 billion K), up 199% compared to the corresponding period.
Santos Managing Director and Chief Executive Kevin Gallagher said Santos achieved record production, revenue and free cash flow in the first half of 2022, demonstrating the strong performance of the core business. and the strategic advantages of our diversified portfolio, despite a number of major projects. stops in the second trimester.
Mr Gallagher said strong production combined with rising commodity prices generated a record free cash flow in the first half of $1.7 billion (K5.9 billion), an increase of 199 % compared to the corresponding period of last year.
“Santos is positioning itself as a leading and reliable LNG supplier in Asia and we are well positioned to take advantage of the growing Asian demand for LNG, which is expected to double by 2050.
“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 rig in the Cooper Basin during the quarter,” said said Mr. Gallagher.
He said that despite the period of price and demand volatility, Santos’ domestic gas customers were paying significantly less than those paid by international customers and these domestic prices reflected the long-term contracts that almost all of their Australian customers had. subscribed, rather than much advertised domestic spot prices, which represent only about 10% of the East Coast gas market.
“Our new capital management framework announced in April, combined with strong free cash flow, positions us well to deliver shareholder returns in August’s half-year results,” Gallagher said.