The Santos Ltd (ASX: STO) share price is in focus today as the company reported a 2% lift in half-year product sales revenue to US$2,620 million, but a 19% drop in statutory profit to US$355 million for the six months ended 30 June 2026. Directors declared an unfranked interim dividend of 11.6 US cents per share.
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What did Santos report?
- Product sales revenue: US$2,620 million, up 2% year on year
- Statutory net profit after tax: US$355 million, down 19%
- Underlying profit: US$397 million, down 22%
- EBITDAX: US$1,555 million, down 12%
- Interim dividend: 11.6 US cents per share (unfranked), down 13%
- Operating free cash flow: US$378 million, down 65%
What else do investors need to know?
Santos delivered higher production volumes, mainly due to increased LNG output and the continued ramp-up of the Barossa and Pikka Phase 1 developments. Sales volumes rose by 1.7% to 48 million barrels of oil equivalent, helping offset the impact of lower realised LNG prices and higher depletion expenses.
Cash flow from operations fell sharply versus the prior period, reflecting increased commissioning costs at Barossa and Darwin LNG, higher third-party purchase costs, and the change in depreciation methodology to reflect 1P reserves rather than 2P.
The company's major projects remain on track. Barossa has reached 97% of planned rates since the end of June, while Pikka Phase 1 in Alaska achieved first oil, with expectations for ramp-up to plateau production in the third quarter of 2026.
What's next for Santos?
Santos has provided production guidance of 99 to 105 million barrels of oil equivalent and sales volume guidance of 102 to 108 million barrels for the full year 2026. The company expects key growth projects, including the Barossa and Pikka ramp-ups, to underpin higher production and support long-term performance.
Santos continues to progress its portfolio of decarbonisation initiatives, such as the Moomba and Bayu-Undan carbon capture projects. The company maintains its focus on reducing costs, improving asset reliability, and delivering project milestones to support its strategy.
Santos share price snapshot
The Santos share price is marginally outperforming the S&P/ASX 200 index (ASX: XJO) on a 12-month basis with a gain of 4.5%.
