Australian oil and gas producer Santos posted lower sales revenues for the second quarter of 2016, compared to the same period last year, and slashed its capex guidance for the year.
Santos said on Friday that the company’s sales revenues for the second quarter 2016 dropped by 3% to $590 million, compared to $611 million in the prior year quarter.
The company’s second quarter 2016 production was up 8% amounting to 15.5 mmboe, compared to 14.3 mmboe in the corresponding quarter last year. The average realized oil price decreased 24% from $64.58 per barrel in 2Q 2015, to $49.21 per barrel in 2Q 2016.
Furthermore, Santos’ capital expenditure for the quarter was halved totalling $133 million, versus $271 million in the same period last year.
The Australian company maintained its production and sales volume guidance for 2016 but slashed its capex guidance for the year from A$1.1 billion ($822.7M) to $750 million.
Santos Managing Director and Chief Executive Officer (CEO) Kevin Gallagher said the company’s commitment to lifting productivity and cutting costs was starting to deliver tangible results.
Offshore Energy Today Staff