Due to the strong performance of Santos Limited (ASX: STO) across its core assets, there was an increase in production by 6% which is equivalent to 15 mmboe for the third quarter of 2018. There was in increase in the sales revenue by 10% (equivalent to $973 million) which also includes the quarterly revenues generated by LNG worth $405 million. The daily rates of PNG LNG achieved record equivalent to ~9.2 mtpa. The oil production of Cooper Basin is increased by 17% which includes the highest monthly production rates since 2009. The operations of Fourth rig has started. It is expected that around 85-90 wells will be drilled in 2018. The drilling of Moomba South Phase 1 has initiated a strong balance sheet and also support growth. The target to reduce the debt reduction by the end of the quarter is above expectation. The net cash and cash equivalent by the end of 30 September 2018 with Santos is $1.8 billion. However, there is still a debt of $2 billion. However, dividend of the company is reinstated worth US3.5 cents per share as fully franked interim dividend paid. There was also an announcement regarding the acquisition of value accretive Quadrant Energy worth $2.15 billion. In the month of September, the company has made a sale of its Asian assets for which it received cash worth $144 million. Mr. Gallaghar highlighted that the sales revenue for this year was higher than the previous year because of the strong performance during the third quarter in area of sales and production.
The other highlight of the activities report entailed exploration yielding three new field discoveries.
For the period of 6 months ended 30 June 2018, the company made a gross profit of A$518 million. The net profit made by the company is A$104 million. The company currently has total assets worth A$13411 million and total liabilities worth A$6,413 million. Thus, representing that the company is capable of clearing its long term obligations. The total current assets available with the company is A$2,502 million and total current liabilities are worth A$1,743 million. This indicates that the company can even clear its short term obligations. The total shareholders equity is worth A$6,998 million. The net cash generated from the operating activities is A$644 million. The net cash used in the investing activities is worth A$258 million where the major cash outflow was due to the payment made for the oil and gas assets worth A$251 million. The net cash used in financing activities is worth A$120 million where major cash outflow is due to the repayment of the borrowing worth A$112 million. As a result of this the net cash and cash equivalent at the end of the period is A$1,492 million.
The market price of the share is A$7.03 with market capitalization worth A$14.69 billion and PE ratio of 43.23x. In last one year, the stock has been up 66.67%, as at October 17, 2018 and edged lower on October 18, 2018.
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