Energy giant Santos expects to meet its full year production targets after reporting a boost in quarterly sales revenue and a slight production fall.
Energy giant Santos says growth in full year production is going to plan, as rising prices help to deliver record sales revenue.
Revenue rose by 21 per cent in the three months to December 31, compared to the same period in 2012, despite a fall in quarterly output due to lower gas production in the Cooper Basin and Asia.
Santos reported sales revenue of $1.1 billion in the December quarter, lifting its 2013 revenue to $3.6 billion, up 12 per cent on 2012.
“The record result was driven by the company’s highest oil production in six years, strong oil prices and higher third party sales volumes,” Santos said.
Despite the strong revenue result, Santos shares fell 12 cents, or 0.8 per cent, to $14.14.
Santos still expects production to rise to between 52 and 57 mmboe in 2014, from 51 mmboe in 2013.
Chief executive David Knox said the company’s PNG liquefied natural gas (LNG) joint venture project with Exxon Mobil is now 90 per cent complete and on track to commence shipments to Asia in the second half of 2014.
“We are very pleased with the progress being made on the project, with commissioning of the upstream and LNG plant facilities well underway,” Mr Knox said.
He said the GLNG joint venture project in Queensland remains on track for first LNG in 2015, while capital costs estimates for both projects were unchanged.
Santos said shale resources in the Cooper Basin were delivering encouraging results.
Meanwhile, production costs were in line with guidance at between $670 to $690 million, with capital expenditure expected to run at $4.1 billion for the year, up from the projected $4 billion.
Santos will release its full-year results on February 21.