Australian energy producer Santos (ASX:STO) has released its Q4 2018 sales revenue. The results highlight record sales during the last quarter of the of 2018.
As quoted from the press release:
Record sales revenue and strong production
- Record quarterly sales revenue of AU$1,043 million, up 7 percent and including record quarterly LNG sales revenue of AU$449 million, up 11 percent
- Record annual sales revenue of AU$3,696 million, up 19 percent.
- Fourth quarter production up 6 percent to 15.9 mmboe due to sustained strong performance from the core portfolio and acquisition of
- Quadrant Energy, partially offset by the sale of the non-core Asian assets
Onshore activity levels increasing within disciplined operating model
- A record 305 wells in GLNG drilled in 2018, up 77 percent. Expect to drill 350-400 wells in 2019
- 85 wells drilled in the Cooper Basin in 2018, up 40 percent. Expect to drill ~100 wells in 2019, including up to
16 exploration wells
Cooper Basin exploration and appraisal success
- The Cooper Basin exploration program resulted in five new field discoveries (four gas and one oil) and at Moomba South, four appraisal wells targeting a significant 2C resource have been brought on-line
- The Moomba South program also discovered new plays in the Granite Wash and Tirrawarra sandstone which are being assessed for further appraisal
Quadrant Energy acquisition completed on 27 November 2018
- On completion, Santos paid an amount of $1.93 billion, comprising the purchase price of AU$2.15 billion less completion adjustments and cash acquired
Cash generative core portfolio. Balance sheet supportive of growth profile
- As at 31 December 2018, Santos had cash and cash equivalents of AU$1.3 billion and total debt of AU$4.9 billion, resulting in net debt of AU$3.6 billion and gearing of approximately 33 percent.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “In 2018, Santos delivered higher production in the onshore business and acquired Quadrant Energy which will provide a significant boost to our production in 2019.”
“Our cash generative asset portfolio set new records for quarterly and annual sales revenues, notwithstanding the divestment of our non-core Asian assets during the year, while our low cost and disciplined operating model enabled more investment in exploration and appraisal to improve ongoing organic resource and reserve replacement.”