Merger shows positive outcome for Santos

THE merger of Oil Search with Santos has had a positive effect on Santos’ first half-year results of 2022, according to a statement from the company.
Santos yesterday reported a free cash flow of US$1.7 billion (about K5.84 billion) and underlying profit of US$1.3 billion (K4.472 billion).
“The results reflect significantly on the higher oil and liquefied natural gas prices, compared to the corresponding period last year, due to stronger global energy demand combined with a higher interest in PNG LNG following the Oil Search merger,” it said.
Santos intends to return US$605million (about K2.08billion) to shareholders – equivalent to US18 cents (K0.61) per share – under the company’s capital management framework.
It represents a 38 per cent increase in interim dividend to US7.6 cents (K2.61) per share.
There is also an increase in the previously announced on-market share buyback from US$250 million (about K860 million) to US$350 million (K1.2 billion).
Santos managing director and chief executive officer Kevin Gallagher said Santos delivered record production, free cash flow and underlying earnings in the first six months of 2022, as the company benefited from strong customer-demand for its products, plus the higher commodity prices.
“Demand for our products has remained strong in Australia and internationally, due to increased demand and shortage of supply from producing nations due global underinvestment in new supply,” Gallagher said.