Santos posts record quarterly sales of $1.1bn

Santos posts record quarterly sales of $1.1bn

Australia’s Santos (ASX:STO) delivered record quarterly sales revenue of US$1.14 billion and record quarterly free cash flow of US$359 million.

“Our disciplined, low-cost operating model continues to drive strong performance with US$931 million of free cash flow generated in the first nine months of 2021. At current commodity prices, Santos should generate close to US$1.3 billion in free cash flow for the full year,” the company’s chief executive, Kevin Gallagher, said today during the third-quarter results.

Gross Bayu-Undan production was higher in the quarter due to the successful start-up of the first well in the infill drilling program. Gas production was also stronger in Queensland and Papua New Guinea (PNG). Despite the higher production, Santos’ net third quarter production of 21.9 mmboe was 3% lower than the second quarter following the 25% sell-down in Bayu-Undan and Darwin LNG completed at the end of April and a lower net entitlement to Bayu-Undan production under the terms of the production sharing contract.