A quarterly sales record was achieved by energy giant Santos (ASX:STO) after sales revenue surged 6.0 per cent to $1.52 billion (US$1.14 billion) in the September quarter.
Gas production was stronger in Queensland and Papua New Guinea. Santos had some success with a start-up of the first well at the gas project in the Timor Sea, Gross Bayu-Undan.
Despite the higher production, Santos’ net third quarter production of 21.9 million barrels of oil equivalent was 3.0 per cent lower than the prior quarter.
The company attracted $478 million (US$359 million) in free cash flow which is a 33 per cent jump from the same period last year.
The increased free cash flow helped Santos reduce their debt position to $4.1 billion ($US.3.1 billion) reducing their gearing by 29.7 per cent. The company is on track to reduce their credit position below 28 per cent by the end of the year at the commodity prices we are seeing.
“Our disciplined, low-cost operating model continues to drive strong performance with $US931 million of free cash flow generated in the first nine months of 2021,” said Kevin Gallagher, chief executive.
Meanwhile, the energy giant is waiting for regulatory approval for its merger with Oil Search (ASX:OSH).
Shares in Santos (ASX:STO) are trading 0.6 per cent lower at $7.24 while Oil Search (ASX:OSH) are trading 0.5 per cent lower at $4.45.