The acquisition of WA-baed Quadrant Energy last year for $US2.15 billion (around $A2.9 billion) continues to pay off for Santos and its shareholders with better quality revenue and earnings and yesterday, a near doubling in interim dividend.
Santos yesterday reported that interim net profit more than trebled in the six months to June while underlying profit also rose strongly.
Net earnings surged to $US388 million ($A571.8 million) for the six months to June, from $US104 million in the first half of 2018.
Before one-off or extraordinary items, Santos said profit jumped 89% to a record $US411 million on sales up 17.5% to $US1.97 billion.
Santos said besides the boost from the acquisition of Quadrant Energy strong output from its Cooper Basin fields in South Australia helped drive the result.
In the next few months, Santos will see another benefit from the Quadrant deal when the size of the 80% owned Dorado oil find of the NW WA coast is expanded and a better idea is given (in an update) about a development timeline.
Dorado (which is 20% owned by Carnarvon Petroleum) has been described as the biggest oil find in Australia in the past 20 years.
Santos also told the market that it was looking for more savings from the Quadrant purchase, its forecast on savings to between $US50 million and $US60 million a year, from $US30 million to $US50 million.
It also lowered its capital spending forecast for the year to between $US950 million and $US1.05 billion, from about $US1.1 billion.
The company declared an interim dividend of 6.0 US cents a share, compared with 3.5 US cents last year when it revived payouts after grappling with debt for more than two years.
Santos shares added 3.5% to $7.10.
