South Australian oil and gas producer Santos’s half year net profit has risen three per cent due to increased sales revenue from higher gas prices.
Net profit for the six months to June 30 rose to $271 million, from $262 million at the same time last year.
Underlying profit fell 11 per cent to $251 million, while revenue was up one per cent at $1.53 billion.
It was a mixed bag for Santos with The Fletcher Finucane oil project, offshore from Western Australia, starting production during the half ahead of schedule and on budget, while higher oil production in Vietnam was offset by expected natural field decline in assets in Australia and Indonesia. Sales volumes were 6 per cent lower at 27.4 mmboe.
The company’s said its share of Cooper Basin oil production was 7 per cent lower than the corresponding period due to planned maintenance activities and natural field decline.
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Its share of gas production from the Darwin LNG plant was 38 per cent higher than the first half of 2012 due to a scheduled maintenance shutdown of the asset in the corresponding period.
“Darwin LNG has performed strongly since the shutdown,” the report said.
“Santos’ offshore exploration activities in Western Australia in 2013 have yielded gas discoveries at Bassett West in the Browse Basin, and Bianchi and Winchester in the Carnarvon Basin.”
Santos declared a half-year, fully-franked, dividend of 15 cents per share.
Its shares opened today at $14.01, after solid gains throughout the last months.
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