Oil and gas company Santos (ASX:STO) has announced total sales revenue increased 20 per cent in 2017 to US$3.1 billion compared to the previous year, despite a fall in production and sales volumes, offset by an increase in the average selling price and a reduction in production costs.
This has resulted in a 23 per cent reduction in net debt to US$2.7 billion, compared to US$3.5 billion at the end of 2016.
Overall sales volumes reached 83.4 million barrels and production reached 59.5 million barrels, below last year’s results but at the upper end of guidance for 2017.
The miner achieved a 10 per cent increase in annual LNG sales volumes of more than 3 million tonnes for the year, driving LNG sales up 33 per cent to US$1.2 billion for the year, compared to $887 million in 2016.
Overall production dropped 3 per cent for 2017 compared to 2016, due to lower production in PNG due to planned maintenance at PNG LNG.
Shares in Santos (ASX:STO) are trading 2 per cent higher at $5.29.