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Highlights
- Santos revealed its fourth quarter report for the period ending 31 December 2022 wherein it delivered record annual sales revenue, production, and free cash flow.
- The company seeks to sustain its core assets to provide critical fuels the world demands into the 2040s.
- 2023 production is projected between 89-96 mmboe (formerly 91-98 mmboe).
- Santos will declare final results for the year ending 31 December 2022 in February 2023.
Global energy company Santos Limited (ASX:STO) has unveiled its fourth quarter report for the period ending 31 December 2022. The company delivered sales revenue of $US1.9 billion, which brings the 2022 revenue to a record $US7.8 billion, an increase of 65% on the previous year. Santos claims to be amongst Australia’s largest domestic gas suppliers and a prominent LNG supplier in the Asia Pacific region.
Key highlights from STO’s fourth quarter report
- Annual free cash flow of nearly US$3.6 billion, more than double the 2021 level.
- Fourth quarter production of 25.6 mmboe. This was lower than the third quarter, owing to reduced domestic gas volumes in Western Australia (WA) after unplanned maintenance at John Brookes.
- Annual production of 105.4 million barrels of oil equivalent (mmboe).
- Capital expenditure included US$275 million (in the base business) and US$400 million for major projects.
“We will seek to backfill and sustain our core assets to deliver the critical fuels the world needs into the 2040s”, says Managing Director and Chief Executive Officer Kevin Gallagher.
How did Santos perform in Q4 as compared to Q3?
The fourth quarter sales volumes were relatively less than the third quarter, majorly due to the timing of PNG LNG shipments. Other factors contributing to this dip were the brief shutdown of the John Brookes platform in WA, timing of crude liftings in the region, and lower third-party oil volumes in the Cooper Basin.
Likewise, sales revenues was also less due to lower domestic gas, LNG and crude oil sales volumes and lower liquids prices. Production was 2% lower than in the third quarter.
Why has Santos reduced its 2023 guidance?
2023 production is now estimated to lie between the range of 89-96 mmboe (formerly 91-98 mmboe). This change has been catalysed by the temporary shutdown of the John Brookes platform that is extending to around late-January/early-February. Besides, there is a delay in the start of production from the Spartan field.
The company plans to reveal its results for the year ended 31 December 2022 on 22 February 2023. The 2023 Annual General Meeting (AGM) will be conducted on 6 April 2023.
How are shares faring on the ASX?
Mid-day on 19 January 2023, STO was trading at AU$7.22, down 1.8%, with a volume of over 4 million shares traded. The company’s market capitalisation stood at AU$24.38 billion.
