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Barossa Gas Project: Learn more

Record sales revenue and free cash flow

  • Delivered record year-to-date sales revenue of US$5.9 billion, up 86 per cent, and record free cash flow of US$2.7 billion, up 194 per cent on the corresponding period
  • Third quarter production of 26.1 mmboe was slightly higher than the second quarter primarily due to increased domestic gas demand and reduced production downtime

Strong balance sheet supportive of disciplined growth

  • Free cash flow of over US$1 billion in the quarter reduced gearing to 20.8 per cent at the end of September
  • Received a binding conditional offer to acquire a 5 per cent interest in PNG LNG for asset value of
    US$1.4 billion, including a proportionate share of project finance debt
  • Barossa drilling operations suspended following Federal Court decision to set aside the acceptance by the regulator of the drilling and completion activities environmental plan. Santos is appealing the decision with a hearing on the appeal expected to be held in mid-November
  • Following FID on the Pikka Phase 1 project in Alaska in August, contracting activities are well underway with drilling expected to commence in the second quarter of 2023

Decarbonising the energy supply chain

  • Moomba CCS project is 25 per cent complete and progressing on schedule and budget
  • Bayu-Undan CCS project continues to gain momentum with onshore and offshore FEED packages awarded and engagement with the Australian and Timor-Leste governments
  • Trials of direct air capture technologies in the Cooper Basin planned to commence first half 2023

On track to deliver upgraded merger integration synergies guidance

  • US$112 million in sustaining annual synergies achieved in the first nine months of integration[1]

Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos delivered another strong quarter with record sales revenue and free cash flow, demonstrating solid performance from our LNG portfolio and our domestic gas business.

Santos’ disciplined operating model has delivered strong production which, combined with higher commodity prices, resulted in record third quarter free cash flow of over US$1 billion, taking free cash flow for the first nine months of 2022 to US$2.7 billion.

“Energy security is a top priority for countries in our region. Given the ongoing strong customer demand for our product now and into the future, Australia’s role as a major energy-producing nation has never been more important,” Mr Gallagher said.

Santos is committed to keeping the Australian domestic market supplied, while remaining a leading, reliable and low-cost LNG supplier into Asia.

“As the world sees strong demand for our products, we continue to focus on the critical dual purposes of delivering the energy the world needs while investing to decarbonise the energy supply chain.”

Comparative performance

Santos shareUnitQ3 2022Q2 2022Change2022 YTD2021 YTDChange
Sales volumemmboe29.927.49%85.478.29%
Sales revenue$million2,1501,86915%5,9063,18286%
Capital expenditure[2]$million50545311%1,39489456%

[1] Excludes integration and other one-off costs.

[2] Capital expenditure including restoration expenditure but excluding capitalised interest.