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Santos (ASX:STO) - MD and CEO, Kevin Gallagher
MD and CEO, Kevin Gallagher
Source: Santos
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  • Santos (STO) reports record production and sales figures for the first half of 2021
  • Net after-tax profit surged to US$354 million (A$482 million), representing a 222 per cent increase compared to last year
  • Production and sales also hit all-time highs, coming in at 47.3 million barrels of oil equivalent (mmboe) and 53.8 mmboe, respectively
  • An interim dividend of US5.5 cents (A7.5 cents) per share will be paid — a 165 per cent increase over last year’s payout
  • Shares in Santos are down 1.45 per cent to $6.12 at noon AEST

Shareholders of Santos (STO) will be pleased this morning, after the oil and gas giant unveiled record production and sales figures for the first half of 2021.

Net after-tax profit surged to US$354 million (A$482 million), representing a 222 per cent increase compared to a loss of US$289 million (A$394 million) last year when the pandemic caused a major drop-off in demand for oil.

Both production and sales also hit all-time highs, coming in at 47.3 million barrels of oil equivalent (mmboe) and 53.8 mmboe, respectively. Those sales generated US$2.04 billion (A$2.78 billion) in revenue — a 22 per cent jump from last year.

“The results reflect higher oil prices compared to the corresponding period due to recovery in demand, but were offset by lower average LNG prices due to lagged oil-linked pricing in long-term LNG offtake contracts,” Santos said in a statement this morning.

With such strong results, the company’s Board has elected to pay an interim dividend of US5.5 cents (A7.5 cents) per share — a 165 per cent increase over last year’s payout of US2.1 cents (A$2.86 cents) per share, or equivalent to 20 per cent of free cash flow in the first half of the year.

Managing Director and CEO Kevin Gallagher said Santos would remain “disciplined and cost focused” as it enters its next phase of growth and advances its proposed merger with fellow ASX-lister Oil Search.

“The proposed merger is a compelling combination of two industry leaders to create an unrivalled regional champion of size and scale with a unique diversified portfolio of long-life, low- cost oil and gas assets,” Mr Gallagher said.

“The merged company would have strong cash generation from a diverse range of assets which provides a strong platform for sustainable growth and continued shareholder returns.”

It’s expected that a binding Merger Implementation Deed will be signed in the coming weeks.

Shares in Santos were down 1.45 per cent to $6.12 at noon AEST.

STO by the numbers
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