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Barossa Gas Project: Learn more

Record first half sales revenue and free cash flow

  • Delivered record first half sales revenue of US$3.8 billion, up 85 per cent, and record free cash flow of US$1.7 billion, up 199 per cent on the corresponding period
  • Second quarter production of 25.5 million barrels of oil equivalent (mmboe) was slightly lower than the first quarter, primarily due to expected natural field decline at Bayu-Undan and major planned maintenance outages at PNG LNG, Darwin LNG and the Cooper Basin
  • Generated US$843 million in free cash flow in the second quarter, bringing first half free cash flow to US$1.7 billion

Strong balance sheet supportive of disciplined growth and higher returns

  • Strong free cash flows reduced gearing to 22.5 per cent at the end of June
  • US$174 million of the initial US$250 million on-market share buyback completed by the end of the quarter
  • Barossa project is 40 per cent complete and progressing on schedule and budget
  • Pikka Phase 1 project in Alaska has received all major environmental and regulatory approvals and has sufficiently advanced FEED work to achieve FID-ready status, as planned

Decarbonisation and clean fuels

  • Moomba CCS project is 18 per cent complete and progressing on schedule and budget
  • Bayu-Undan CCS project is progressing with onshore and offshore FEED packages awarded during the quarter
  • Trials of direct air capture technologies in the Cooper Basin planned for the second half 2023

On track to deliver merger integration synergies 

  • US$95 million in sustaining annual synergies achieved in the first six months of integration1
  • Already exceeded the lower end of the merger integration synergies target range of US$90-115 million1

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered record production, sales revenue and free cash flow in the first half of 2022, demonstrating 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 free cash flow of US$1.7 billion, an increase of 199 per cent from the corresponding period last year.

“Santos is positioned as a leading and reliable LNG supplier into Asia and we are well placed to take advantage of growing Asian demand for LNG, which is forecast to double by 2050,” Mr Gallagher said.

“At the same time, we supported the domestic gas market during a period of extreme demand by diverting gas from GLNG 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. These domestic prices are reflective of the long-term contracts that almost all of our Australian customers are on, rather than much publicised spot domestic market prices, which make up approximately 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.”