Australian energy giant Santos has posted a record quarterly production of oil and gas, but the coronavirus pandemic and collapse in crude oil prices have led to an 11 per cent slump in sales revenue.
Days after slashing more than $1 billion from the value of its business due to the global energy market crash, Santos on Thursday detailed the extent of the impact of vanishing demand and plunging oil prices so far. Its average realised oil price has been cut in half to $US30.78 a barrel in the June quarter, the company said, down from more than $US60 a barrel in March.
Santos’ realised price for liquefied natural gas (LNG) shipments during the quarter, however, has proven more resilient than that of many of its competitors. Santos said it had achieved an average LNG price of $US8.27 per million British thermal units, 6 per cent lower than the $US8.88 it received in the previous quarter, but well above the $US5-US7.50 of rivals including Woodside.
“A clear standout to date in terms of its realised LNG pricing,” said Gordon Ramsay, oil and gas analyst with RBC Capital Markets. “This highlights the robust nature of Santos’ LNG contracts, despite customers exercising contractual flexibility on LNG cargoes.”