JOHANNESBURG (miningweekly.com) – Oil and gas company Santos produced a record 31.1-million barrels of oil equivalent in the first half of 2016 and significantly boosted its sales volumes, but a 29% decrease in the average realised oil price has dented its revenue.
Santos increased its production by 10% year-on-year in the first six months of 2016, which comprised 15.6-million barrels in the first quarter and 15.5-million barrels in the second quarter.
Half-year sales volumes increased by 32% year-on-year to 40.9-million barrels of oil equivalent, but Santos suffered a 29% decrease to $43/bl in the average oil price achieved.
Sales revenue fell by 6% year-on-year to $1.19-billion, compared with $1.26-billion in the first half of 2015. Second-quarter sales revenue declined by 3% year-on-year to $590-million.
The company maintained its 2016 production guidance of between 57-million and 63-million barrels of oil equivalent and its sales guidance of between 76-million and 83-million barrels of oil equivalent.
Santos MD and CEO Kevin Gallagher said on Friday that the company’s commitment to improving productivity and lowering costs had started to deliver tangible results.
“There is a lot of work ahead of us, but today’s results show we are heading in the right direction,” he stated.
Santos will release its results for the half-year ended June 30 on August 19.