Strong sales revenue and free cash flow
- Sales revenue of US$1.6 billion in the first quarter
- First quarter production of 22.2 mmboe was lower than the prior quarter primarily due to reduced domestic gas volumes in Western Australia supported by extended production from the Bayu-Undan field
- Free cash flow of around US$720 million in the first quarter
Strong balance sheet supportive of shareholder returns and delivering on strategy
- Completed US$466 million of announced US$700 million on-market share buyback at end March
- Barossa project 56 per cent complete – drilling activities remain suspended pending re-submission and approval of the environmental plan. Potential for drilling activities to recommence before the end of the year
- Pikka Phase 1 preparing for drilling activities in the second quarter of 2023
- FEED entry on the integrated Papua LNG project in March 2023, with first production expected end 2027/early 2028
- Dorado Offshore Project Proposal accepted by regulator in February 2023 to support development and we continue to refine an integrated development concept, with a focus on integrating the Pavo discovery and phase 2 via Varanus Island
- The impact of the proposed reforms to the Safeguard Mechanism are yet to be determined, as guidelines are not finalised. We continue to engage with the Government on the proposed changes
Santos Energy Solutions focused on decarbonising the energy supply chain
- Moomba CCS project is 60 per cent complete with first injection expected early 2024
- Construction of the first 0.25 tonnes per day Direct Air Capture unit complete with field trials in the Cooper Basin planned to commence in the first half of 2023
- FEED work scopes complete for the Bayu-Undan CCS project including design of the offshore platform topsides CCS equipment
Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered another solid quarter of production and cash flow generation with our diversified portfolio demonstrating the strength of our disciplined operating model.
Free cash flow of around US$720 million positions the company well to maintain a strong balance sheet, deliver higher shareholder returns and invest in cash-generative critical fuels projects and decarbonisation.
“Our Santos Energy Solutions business continues to work on building new revenue sources through decarbonisation projects. The Moomba CCS project, which will be one of the biggest in the world, is 60 percent complete and on track for first injection of CO2 next year. We have also established a partnership with Osaka Gas to investigate the feasibility of carbon neutral synthetic e-methane from green hydrogen in the Cooper Basin,” Mr Gallagher said.
“Despite the uncertain external environment Santos continues to perform strongly against the backdrop of regulatory and economic uncertainty. The disciplined operating model we have in place positions us to deliver on our strategy to backfill and sustain our infrastructure, decarbonise and develop future clean fuels.”