The Santos Ltd (ASX: STO) share price is in the red on Wednesday after the energy giant posted its results for the half-year ending June 30, 2024.
Santos shares are currently swapping hands 2.5% lower at $7.62 apiece. Meanwhile, the S&P/ASX 200 index (ASX: XJO) is 0.5% lower at the time of writing.
Let's see what the company posted.
Santos share price lifts on mixed half-year results
Key highlights from Santos' first-half performance include:
- Sales revenue came to US$2.7 billion, down 9% from the previous period.
- Produced free cash flow from operations of US$1.1 billion, down 5% year over year.
- Production was 44 million barrels of oil equivalent (mmboe), a 2% decline.
- Earnings before interest, tax, depreciation, amortisation and exploration (EBITDAX) of US$1.85 billion, down 13% compared to last year.
- Underlying profit came to US$654 million, down 18%.
- Declared a record interim dividend of US 13 cents per share, a 49% increase.
What else happened in H1 FY24?
The Santos share price was volatile during FY24 as oil and gas prices gyrated. It reported a 9% drop in sales revenue for the first half of FY24, totalling US$2.7 billion, as production fell slightly to 44 mmboe, down 2% compared to this time last year.
Project-wise, the company made several advancements during the half.
The Moomba Carbon Capture and Storage (CCS) project is in the "final stages of commissioning".
The Barossa Gas Project is nearing 80% completion, with the first gas anticipated in Q3 CY 2025.
Additionally, the Pikka Project in Alaska is nearly 60% complete, with the first oil expected in H1 CY 2026.
The company advised unit production costs were higher this half due to higher maintenance costs at its Cooper Basin assets, producing $1.8 billion in pre-tax profit.
Meanwhile, the board approved a "record interim dividend" of US 13 cents per share, up 49% over last year's payment. This could impact the Santos share price.
What did management say?
Santos managing director and CEO Kevin Gallagher provided a detailed assessment of the first half's performance:
Today's results demonstrate the capability of Santos to generate strong cash flow from operations, deliver significant progress on major projects and deliver competitive, reliable shareholder returns.
The disciplined low-cost operating model underpins our business, and we continue to manage our cost base to be resilient through all scenarios and price cycles.
Gallagher also noted the importance of the "base business":
Our base business continues to deliver record reliability in PNG, the Angore wells are on track to come online later this year, Queensland coal seam gas is achieving record production rates, and in WA we have safely and efficiently delivered a significant decommissioning program in the first half.
The base business provides the foundation for reliable production and cash flows to support returns to our shareholders in accordance with our capital management framework.
What's next?
The company made no changes to its full-year guidance today. This includes estimated production of 84–90 mmboe, and sales volumes of 87-93 mmboe.
Unit production costs are projected to be US$7.45–$7.95 per boe. Meanwhile, it also expects to invest around US$1.6 billion in capital expenditures for the year.
The company says it is on track to meet its 2024 guidance.
Santos share price snapshot
The Santos share price is trading just 0.13% higher over the past 12 months and has lifted 2.8% since the start of 2024.
