Santos, which has been cutting costs and restructuring as it tries to catch falling commodity prices, has managed to defy global trends and lift sales revenue.
First quarter revenue was $835 million, a rise of just 1% when compared to the same quarter last year.
However, to do this the energy giant had to increase the amount it sold, and cut the cost of production to make up for lower prices.
Sales volumes were up by 40% to 21.3 mmboe (million barrels of oil equivalents) from 15.2 and the average price was down 28% to $51.26.
Santos, like most resources companies, has been cutting costs to match falling commodity prices and make up the shortfall with extra production. The company has cut its dividends and tied future payouts to profit.
In February Santos reported a full year loss of $2.7 billion, including impairments of $3.924 billion before tax ($2.761 billion after tax), mainly relating to Cooper Basin gas producing assets, GLNG and Gunnedah Basin.
CEO Kevin Gallagher says the first quarter results reflect solid production and a firm commitment to drive costs down and improve efficiencies.
“We are focused on developing a business that is self-sustaining in a low oil price environment and well positioned to take full advantage of rising commodity prices in the future,” he says.
“We will continue to look for opportunities to lift productivity and reduce costs to drive long-term value for shareholders.”
Santos has maintained its full year production guidance of 57-63 mmboe.
Details on first quarter production: