Australia's Santos Limited recorded a net profit of $247.3 million (AUD 271 million) for the first half of this year, up 3 percent from the same period last year, the company announced Friday.
The firm attributed the better results to record sales revenue driven by higher crude oil sales volumes and gas prices, impairment reversals and lower production costs, partially offset by lower interest income. Excluding impairment reversals and other one-off items, underlying net profit 11 percent lower at $229.6 million (AUD 251 million).
Total revenue rose 1 percent to $1.38 billion (AUD 1.51 billion) in the period under review, compared to $1.36 billion (AUD 1.49 billion).
“In the first half of this year Santos delivered first oil from the Fletcher Finucane project ahead of schedule and under budget, a facility that will drive stronger production for the company in the second half. The Santos Asia business also continues to make good progress with Dua in Vietnam and Peluang in Indonesia progressing well to deliver first oil and first gas respectively in the first half of 2014,” Santos CEO David Knox in a press release.
“We also continue to make strong progress on our two major growth projects Papua New Guinea (PNG) Liquefied Natural Gas (LNG) and Gladstone Liquefied Natural Gas (GLNG), both of which remain on schedule and whose capital cost estimates remain unchanged. These LNG projects are poised to deliver significant shareholder value and it is our intent to review capital management options as we approach PNG LNG production.”
Santos’ exploration program in the first half had delivered positve results with discoveries offshore Western Australia at Bassett West, Bianchi and Winchester, and also at the Gaschnitz unconventional gas well in the Cooper Basin.
With a first half production of 24.5 million barrels of oil equivalent (MMboe), Santos maintains its 2013 production guidance of 52 to 55 MMboe.
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