Santos Revenue Is Up 25%, Riding On Gushing Crude Oil And Gas Volumes

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Revenue jumped 25% to $1.9 billion for Santos on the back of increased oil and gas volume and higher prices in the half year to June 30.

Net profit after tax of $206 million includes previously advised $67 million after tax impairment. Underlying profit after tax was up 3% to $258 million.

The company’s Papua New Guinea LNG project started delivering ahead of schedule in April and hit full capacity in late July. Santos received its first cash from the project in July.

Santos declared a fully franked interim dividend of 20 cents a share, up 33%.

The result reflects record sales revenue driven by higher crude oil and LNG sales volumes, and higher oil and gas prices, offset by the non-cash impairment of the company’s Indonesian coal-seam gas assets, higher cost of sales, exploration expenses and net finance costs.

CEO David Knox says the first half of 2014 saw Santos achieve its highest oil production in six years, record sales revenue and strong operating cash flow.

“We have set the foundation for a stronger second half,” he says.

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