Oil and gas producer Santos Ltd
(ASX:STO) has reported a decrease in output for the March quarter due to heavy rains and major floods in Central Australia and Queensland.
The company says it produced 12.4 million barrels of oil equivalent for the three months to March, down 6% on the March quarter of last year and 11% compared to the December quarter.
Revenue of $511 million fell 15% from the December quarter and was 5% lower than the same quarter last year.
Gas production was in line with last year however, oil output fell primarily due to flooding limiting access to wells.
Santos says flooding in Central Australia will result in an estimated 2 million barrels of oil equivalent production being deferred.
As a consequence the company says 2010 production guidance has been reduced by 2 million barrels of oil equivalent to a range of 49 to 52 million barrels of oil equivalent.
CEO David Knox, says the heavy rains and flooding in Central Australia would impact the company’s operations in the Cooper Basin for several months, but that the continued delivery of gas to customers is a significant achievement in difficult conditions.
2009 profit for Santos came to $434 million.
