Australian gas developer, Santos has reported free cash flow from operations in the first half of this year of $1.13 bill, down 34% and an underlying profit of $801 mill, a drop of 37% on the corresponding result in 2022.
The statutory net profit was $790 mill, a fall of 32%, compared to 1H22.
First half 2023 production was 45 mill barrels of oil equivalent, a drop of 13% over the period.
Santos said that the results reflected the strength of the disciplined operating model, which was designed to ensure the business remains resilient through the oil price cycle.
The Board has agreed to pay an interim dividend of $8.7 cents per share unfranked ($283 mill), 14% higher than the corresponding period interim cash dividend of 2022.
Managing Director and CEO, Kevin Gallagher, said Santos had delivered strong free cash flow and underlying earnings in 1H23, despite an ever-changing macro environment.
“We remain focused on executing our strategy to backfill and sustain our existing infrastructure, de-carbonise and develop our Santos Energy Solutions division. Our goal is to strike the right balance between disciplined and phased major project spend, returns to shareholders, and investment in new energy solutions to meet customer demand.
“Our Santos Energy Solutions division is expanding and continues to work on building new revenue sources through de-carbonisation projects. The Moomba carbon capture and storage project will be one of the biggest and lowest cost in the world and is on track for first injection of CO2 next year,” Gallagher revealed.
“Our critical fuels play a key role in the energy security of Australia and Asia. Gas enables a cleaner energy future, offering firming for renewable electricity and an affordable, reliable alternative to higher-emitting fuels.”
