Santos has today released its Third Quarter Activities Report.
- Third quarter sales volumes up 31% to 21.3 mmboe.
- Santos LNG sales volumes more than doubled to 755,500 tonnes, reflecting the ramp up of GLNG and strong performance at PNG LNG.
- GLNG produced 1.3 million tonnes of LNG in the quarter and shipped 21 cargoes.
- Third quarter production up 7% to 15.5 mmboe.
- Initial transactions under new oil price hedging policy.
- Year-to-date capital expenditure down 53% to US$438 million. 2016 guidance reduced to US$700 million.
- 2016 production guidance narrowed to 60 to 62 mmboe and production cost guidance cut to US$9-9.50/boe.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos continues to focus on driving down costs and applying available cash flow to reduce debt.
“We are taking the right steps to ensure Santos becomes a strong and sustainable business, and that mindset guides our decision making as we continue to reduce costs and maintain a strong capital discipline. Furthermore, our decision to commence oil price hedging reflects our desire to reduce the effect of commodity price volatility,” Mr Gallagher said.