Santos' (ASX:STO) record year buoyed by strong prices & volumes

Company News

by Melissa Darmawan

Energy giant Santos (ASX:STO) posted a 66 per cent jump in its fourth-quarter sales revenue, boosted by strong commodity prices and volumes amid the northern hemisphere battling out a cold Winter.

Average liquefied natural gas (LNG) prices and crude oil prices have posted strong gains over the past year as supplies remained tight underpinned by a growing list of supply disruptions.

Santos completed its merger with Oil Search at the tail end of last year and earned an average of US$13.64 per metric million British thermal unit for its LNG in the quarter, doubling its price of US$6.39 from 2020.

This helped boost its sales revenue to US$1.5 billion for the December 2021 quarter which included Oil Search’s contribution from 10 December 2021 when the merger was effective a lift from US$922 million in December quarter 2020.

However, the output in the December 2021 quarter fell to 22.9 million barrels of oil equivalent from 25.4 million barrels of oil equivalent from the same period in 2020. Calendar year 2021’s annual output was 92.1 million barrels of oil equivalent, 3.5 per cent higher from 2020.

Guidance for 2022 will be provided with the full-year results on 16 February.
 
Shares are trading 0.1 per cent lower at $7.19.

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