Oil and Gas News

Santos achieves record earnings


Santos, which is now the country’s largest oil and gas producer, has reported record free cash flow and underlying earnings, as well as higher final dividend. 

In its full-year results for 2021, the company recorded free cash flow of US$1.5 billion (AU$2.1 billion) and an underlying profit of US$946 million (AU$1.31 billion). 

The results reflect significantly higher oil and LNG prices compared to the corresponding period due to the recovery in global energy demand combined with supply constraints across the industry. 

Santos managing director and chief executive Kevin Gallagher said a strong base business performance positioned the company to benefit form higher commodity prices. 

The results also reflect three weeks’ contribution from Oil Search assets, which the company formally acquired in December. 

“The merger delivers increased scale and capacity to drive our disciplined, low-cost operating model and unrivalled growth opportunities over the next decade,” said Gallagher. 

Production under the new merger is due to rise to as much as 110 million barrels of oil and gas this year. 

Santos theorises that this may be offset by a lower share of Bayu-Undan production, which is anticipated to generate 10 million barrels of oil equivalent (mmboe) less than last year due to a lower average working interest following a 25 per cent selldown. 

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