Australian oil and gas giant Santos reported a decline in first-quarter revenue by approximately 14% on Thursday, attributing the decrease to reduced production levels and lower volumes across its product range.
Various factors, including severe weather conditions and planned maintenance activities, hampered production during the quarter.
Additionally, sales revenue was impacted primarily by decreased liquefied natural gas (LNG) and ethane volumes, albeit partially offset by higher realised prices.
Santos produced 21.8 million barrels of oil equivalent (mmboe) in the quarter ending March 31, 2024, compared to 22.2 mmboe during the same period last year.
Sales volumes also saw a decline, standing at 23.2 mmboe, down from 23.8 mmboe in the prior corresponding period.
The average realised price for LNG dropped to $12.68 per million British thermal units (mmBtu), a decrease from last year’s $14.46 per mmBtu.
Despite the production challenges, Santos recorded sales revenue of $1.40 billion for the three-month period, down from $1.63 billion a year ago.
While this figure fell short of the Visible Alpha consensus estimate of $1.37 billion, it underscores the ongoing market challenges facing the company.
