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Santos lifts FY revenue 20pc, cuts debt

Stuart Condie  |  24 Jan 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Oil and gas producer Santos (ASX: STO) has lifted full-year revenue 20 per cent to $US3.1 billion ($A3.88 billion), with higher prices offsetting falls in production and sales volume.

The energy producer on Wednesday said fourth-quarter production was flat at 15 million barrels of oil equivalent, but that a 27 per cent rise in average realised prices over the period lifted revenue nine per cent to $US861 million.

Production for the 12 months to December 31 fell three per cent to 59.5 mmboe, and sales volume fell one per cent to 83.4 mmboe, but still beat guidance of 79-82 mmboe.

But full-year average realised prices rose 25 per cent to $US57.90 and Santos reduced debt by 23 per cent to $US2.7 billion.

It aims to reduce debt to $2 billion by the end of 2019.

"In 2017, our turnaround strategy to deliver a low-cost, reliable and high-performance business progressed ahead of expectations," managing director and chief executive Kevin Gallagher said.

"Santos is now a stronger, more resilient company with the capacity to execute and bring on-line growth opportunities across its core long-life natural gas assets."

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The company reiterated its 2018 production guidance of between 55 and 60 mmboe, with sales guidance of between 72 and 78 mmboe.

Santos shares rose 13.5 cents, or 2.6 per cent, to $5.315 by 1050 AEDT.

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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