Santos' 4Q 2013 Sales Revenue Rises to $0.94B, Up 21% YOY

Santos Ltd.'s sales revenue increased 21 percent to $0.94 billion (AUD 1.07 billion) in the fourth quarter of 2013 that ended Dec. 31, 2013, compared to $0.77 billion (AUD 0.88 billion) a year ago, with the record turnover boosted by the firm's highest oil production in six years, strong oil prices and higher third party sales volume, according to financial results released by the company Thursday.

Production in 4Q 2013 stood at 13.1 million barrels of oil equivalent (MMboe), down 1 percent from 13.2 MMboe in the previous year. Santos' oil production of 3 million barrels in 4Q 2013 was 5 percent higher than the previous quarter, driven by higher production from Fletcher Finucane and Chim Sao, while gas production fell 6 percent to 53.2 petajoules (PJ), or 9.1 MMboe, as higher production from the Carnarvon Basin offset  lower production in the Cooper Basin and Asia.

Turning to development projects, Santos said the Papua New Guinea (PNG) liquefied natural gas (LNG) is over 90 percent complete and on track for first gas in the second half of 2014, with commissioning gas from the Kutubu field introduced into the upstream Hides Gas Conditioning Plant in December. Commissioning is also ramping up at the LNG plant with gas circulating in train 1, the refrigeration compressors being test run, and the LNG loading jetty and both LNG tanks completed.

Meanwhile, the Gladstone LNG (GLNG) project is over 72 percent complete and on track for first LNG in 2015, with over 230 coal seam gas (CSG) wells drilled for the year, the first new Fairview and Roma wells connected to the new water processing infrastructure, pre-commissioning of the gas transmission pipeline underway and 90 percent of the train 1 modules delivered to Curtis Island.

“In the second half of 2014 the first of these projects, PNG LNG, is on track to commence LNG shipments to Asia, delivering a significant boost in production and cashflow for the company,” Santos Managing Director and CEO David Knox said in the press release.

“The GLNG project remains on track for first LNG in 2015 ... the estimated capital cost for both the PNG LNG and GLNG projects is unchanged.”

Santos' forecast for 2014 production, announced early last month, remains unchanged at 52-57 MMboe, while the estimated capital expenditure (excluding capitalized interest) of $3.08 billion (AUD 3.5 billion).


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