Santos targets higher 2025 output, pins hopes on Barossa project
Australia's Santos forecast higher output for fiscal 2025 on the prospect that its Barossa project will begin production later this year, and also posted a sequential rise in its fourth-quarter revenue on Thursday.
Santos, the country's no. 2 independent gas producer, expects its 2025 output to come between 90-million and 97-million barrels of oil equivalent (mmboe).
The oil and gas producer reported a production of 87.1-mmboe in 2024, compared with Visible Alpha consensus of 89.9-mmboe.
Shares rose as much as 1.7% to A$7.250, set for their best trading day since Jan. 13, if gains hold. The broader ASX 200 index was down 0.3%, as of 00:46 GMT.
Santos' primary focus for 2025 is to deliver its key Barossa and Pikka gas projects on time and within the budget, it added.
The company stated that first gas from the $4.3-billion Barossa project is expected in the third quarter of this year, with the project nearly 90% complete.
"Santos continues to expand its LNG production capacity to meet strong customer demand, with volumes set to increase significantly once Barossa is online in 2025," Santos CEO Kevin Gallagher said.
Santos CEO was also optimistic on the long-term LNG demand for Asian markets, adding that it "positions Santos to supply lower cost, lower carbon LNG to the Asia Pacific region out to at least 2040".
For the quarter ended December, the Adelaide-based oil producer logged sales revenue of $1.40-billion, a 10% sequential jump quarter-on-quarter.
"Sales revenue of $1.4-billion was a subsequent beat on the stronger sales and oilier sales mix, but in line with consensus," Citi analysts said in a note.
Santos' top line was further boosted by higher crude oil, condensate, and LNG volumes, along with improved sales in the December quarter.
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