Santos doing well: CEO

SANTOS delivered record production, sales revenue and cash flow in the first half of 2022, according to managing director and chief executive officer Kevin Gallagher.
Gallagher said it demonstrated the “strong performance of the base business and strategic benefits of our diverse portfolio, despite a number of major planned shutdowns in the second quarter”.
“Strong production combined with higher commodity prices delivered record first-half cash flow of US$1.7 billion (about K60 billion)- an increase of 199 per cent from the corresponding period last year,” he said.
“Santos is positioned as a leading and reliable LNG (liquefied natural gas) supplier into Asia and we are well placed to take advantage of the growing Asian demand for LNG, which is forecast to double by 2050.
“At the same time, we supported the domestic gas market during a period of extreme demand by diverting gas from GLNG (gas to LNG) and committing to a fifth drilling rig in the Cooper Basin during the quarter.
“Despite the period of price and demand volatility, Santos domestic gas customers paid significantly less than that paid by international customers.”
He said the domestic prices reflected the long-term contracts that almost all of their Australian customers were on, rather than much publicised spot domestic market prices, which made up only 10 per cent of the east coast gas market.
“Our new capital management framework announced in April combined with strong free cash flows position us well to provide returns to shareholders at the half-year results in August.”
The project shipped 28 cargoes in the quarter, including four (Japan Korea Marker-priced) spot cargoes.