The oil and gas boom has waned for Santos (ASX:STO) in the six months to June 30, with lower production, prices, revenue, and earnings.
Despite this, shareholders will likely be pleased with a record interim dividend of 13 US cents per share, up 49%. This announcement comes amid ongoing bid talk in the market, where management and the board are working to maintain shareholder satisfaction.
Production for the half fell 2% to 44 million barrels of oil equivalent (mmboe), and weaker prices led to a 13% decline in EBITDA and exploration earnings to $US1.85 billion. Underlying profit dropped 18% to $US654 million ($A969 million), missing market expectations of $US695 million.
Revenue from customer contracts decreased from $US2.97 billion to $US2.71 billion.
CEO Kevin Gallagher stated that the results demonstrate Santos' ability to generate strong cash flow, advance major projects, and provide competitive returns to shareholders. He emphasised the company's disciplined low-cost operating model and its commitment to managing costs effectively in various price cycles.
The market responded negatively to the news, with shares falling 4.9% shortly before 1 pm.
