Energy giant Santos has released its second quarter report for 2024, highlighting robust free cash flow generation and significant advancements on major projects.
Santos reported free cash flow from operations of approximately US$1.06 billion for the first half of 2024, with US$380 million generated in the second quarter alone.
Sales revenue for Q2 stood at US$1.3 billion, consistent with the same period last year.
Production increased by 2 per cent quarter-on-quarter, reaching 22.2 million barrels of oil equivalent (mmboe) in Q2. The company’s gearing ratio was reported at 19.9 per cent, excluding operating leases.
Santos managing director and chief executive officer Kevin Gallagher said the business performance reflects a focus on operational excellence and project execution, delivering another strong quarter of production and cash flow.
“First half cash flow of almost US$1.1 billion positions us well to fund shareholder returns, backfill and sustain our existing business, and grow our Santos Energy Solutions business,” Gallagher said.
“Our major projects continue to deliver to plan. I am very pleased that both the Barossa pipelaying activities and the installation of the modules onto the FPSO in Singapore are now complete and other activities are on track for offshore commissioning to commence in the first quarter of 2025. The Pikka project has had a strong first winter season with the team delivering significant progress on the North Slope, with some pleasing well results.
“Our focus for 2024 is on continuing to drive the disciplined low-cost operating model across the business and the execution of the Moomba phase one CCS project, Barossa Gas Project, and Pikka Project, whilst maintaining a strong balance sheet,” Gallagher said.
Significant progress was reported on major projects:
The Barossa Gas Project is 77 per cent complete, with pipeline laying activities and module installation on the FPSO finished.
The Pikka Project in Alaska is 56.2 per cent complete, with substantial progress made during the first winter season.
The Moomba Carbon Capture and Storage (CCS) Project achieved mechanical completion on July 6, 2024, and is now in the final commissioning phase.
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