Santos posts record annual production, sales revenue in 2021

January 20, 2022 09:38 AM AEDT

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Santos posts record annual production, sales revenue in 2021 — Image source: Dabarti CGI,Shutterstock

Highlights

Santos announced record annual production and sales revenue in 2021, powered by surging commodity prices.

The company expects a free cash flow of more than double the level seen in 2020.

The year-to-date (YTD) return by Santos’ shares stands at nearly 9%.

Australian energy company Santos Ltd (ASX:STO) on Thursday announced record annual production and sales revenue in 2021, powered by surging commodity prices. The ASX-listed oil & gas firm reported annual production of 92.1 million barrels of oil equivalent in 2021, which included 1.7 million barrels from Oil Search assets from 11 December 2021.

Santos registered a 34% spike in its sales revenue (Q-o-Q), which came in at US$1.5 billion, while its record annual sales revenue stood at US$4.7 billion, up 39%. The rise is 66% when compared to the prior corresponding period.

Despite the upbeat results, Santos stock was trading 0.49% down at AU$7.16 at 11 AM (AEST).

Santos is an energy sector company known for production and exploration of gas and petroleum. The company’s other operations include treatment and marketing of natural gas, crude oil, condensate, naphtha and liquid petroleum gas, transportation by pipeline of crude oil.

Santos also reported an expected free cash flow of nearly US$1.5 billion in 2021, more than double the level in 2020.

“Our disciplined, low-cost operating model continues to drive strong performance across the business and has positioned us to take full advantage of the increase in commodity prices. The completion of the Oil Search merger delivers us the size and scale to deliver even stronger outcomes in 2022 and beyond,” said Santos CEO Kevin Gallagher.

Merger with Oil Search completed

The company announced the merger with Oil Search on 10 December 2021. The data in this report includes the Oil Search assets from 11 December.

Source: © Wrightstudio | Megapixl.com

“Our merger with Oil Search delivers increased scale and capacity to drive a disciplined, low-cost operating model and unrivalled growth opportunities over the next decade – with a vision of becoming a global leader in the energy transition,” Gallagher also said.

Santos’ stock price movement

The year-to-date (YTD) return by Santos’ share stands at nearly 9%. In the past year, the stock has delivered a negative return of nearly 3%, while over the last one month, the stock has given a return of nearly 18%.