Santos 2Q Sales Revenue Falls 18%

   By David Winning 
 

SYDNEY--Santos said its revenue fell by 18% in the three months through June compared to the prior quarter, reflecting reduced sales volumes of liquefied natural gas and lower energy prices.

Santos reported quarterly sales revenue of US$1.34 billion, down from US$1.63 billion in its fiscal first quarter. The drop came despite a 3% rise in second-quarter oil and gas production to 22.8 million barrels of oil equivalent.

"Our underlying business remains strong and has continued to perform well in a volatile oil price environment," said Chief Executive Kevin Gallagher. "Free cash flow of more than US$1.1 billion in the first half positions the company well to deliver shareholder returns, backfill and sustain our existing business while also investing in our decarbonisation projects."

Santos said its free cash flow was around US$400 million in the second quarter. It also said the Bayu-Undan natural-gas field offshore northern Australia is expected to reach end of its life in the second half of this year.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

July 19, 2023 19:21 ET (23:21 GMT)

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