Santos first-half profit dives 32pc
Santos has posted a 32 per cent slump in first-half profit due to softer production and lower oil and LNG prices.
Net profit dropped to $US790 million ($1.23 billion) in the six months ended June 30, from $US1.17 billion in the first half last year. Underlying profit dived 37 per cent to $US801 million.
The figures were broadly in line with consensus estimates.
Santos declared an interim dividend of US8.7¢, up 14 per cent from a year ago.
Chief executive Kevin Gallagher said Santos delivered strong free cash flow and underlying earnings despite “an ever-challenging macro environment”.
“Our goal is to strike the right balance between disciplined and phased major project spend, returns to shareholders, and investment in new energy solutions to meet customer demand,” Mr Gallagher said.
The oil and gas producer had already advised of a drop in production and sales volumes for the half, while prices in several products also slid from the elevated levels of early 2022 at the breakout of the Ukraine war.
Investors are awaiting news of progress on environmental approvals on the Barossa gas project in the Timor Sea, which had to redo indigenous consultation work, and on the completion of a deal to sell a 5 per cent stake in the Papua New Guinea LNG project to Kumul Petroleum.
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