Santos (STO) has joined Woodside (WPL) in revealing a sharp rise in revenues.
In Woodside’s case it was higher gas and oil prices (and oil shipments) in the June quarter and half year.
This morning Santos reported a 25% jump in first half revenues because of the earlier than forecast start of production on the massive PNG LNG project where Oil Search (OSH) is also a shareholder and should provide similar news in its June report next week.
BHP Billiton (BHP) also releases its June quarter, and full year figures next week (on Wednesday) and the performance of its petroleum business will be of considerable interest, especially for the performance of its US shale oil and gas production and sales.
BHP doesn’t have much in the way of exposure to Asia Pacific LNG – which is where Woodside and Santos have been boosted this year.
Santos said it had $1.887 billion in sales revenue for the first half of 2014, up from $1.51 billion in the first half of 2013.
In the three months to June, the company said revenues jumped 22% to $974 million for the second quarter.
Santos said production rose 3% to 12.8 million barrels of oil equivalent (mmboe) during the June quarter, compared to the same period in 2013.
Quarterly sales volumes were up 5% to 15.1 mmboe.
Santos maintained its full year guidance for production of between 51 and 57 mmboe.
STO 1Y – Santos improves production
"Sales gas, ethane and gas to LNG production of 55.7 petajoules for the quarter was 8% higher than the corresponding quarter, with higher production from Darwin LNG and start-up at PNG LNG, offset by lower production from the Carnarvon Basin due to lower customer nominations," Santos said this morning.
"Quarterly crude oil production of 2.1 million barrels was 16% lower than the previous quarter, due to outages at Fletcher Finucane and Chim Sáo, partially offset by higher Cooper Basin production. The average oil price for the quarter was A$122 per barrel, 5% lower than the corresponding quarter."
Santos chief executive David Knox said in today’s statement that the PNG LNG project would be a major driver of the company’s performance in the second half.
"Delivery of the PNG LNG project is an important milestone for Santos in our journey to becoming a major LNG supplier to Asia," he said.
"This project will significantly lift Santos LNG production once the project reaches full output, and we are already seeing the contribution it is making."
The company owns 13.5 per cent of PNG LNG, while US-based oil and gas giant operator Exxon Mobil owns 33 per cent and Oil Search owns 29 per cent.
Santos shares were down 12 cents, or 0.6% to $14.12 just after trading opened because of the sell off after the Malaysian airline tragedy in Ukraine.
