Energy firm Santos posts record annual sales

Energy firm Santos posts record annual sales

Australian-owned energy company Santos (ASX: STO) has posted record annual production and sales figures for 2016.

The independent energy company announced production levels of 61.6 million barrels of oil equivalent (MMBOE) over the year, up 7%, while sales volumes increased by 31% to 84.1 MMBOE and towards the upper end of guidance.

Liquefied natural gas (LNG) sales also reached record annual volumes in 2016, up a huge 89% on the previous year.

managing director and chief executive officer Kevin Gallagher said: “2016 was a year of significant change for Santos and we can be proud of what was achieved.”

Santos sold 2.8 million tonnes of LNG last year, due to a strong performance at the Queensland GLNC facility, along with its various other natural gas operations.

The company’s net debt also reduced to US$3.5 billion as at 31 December 2016.

Gallagher added: “In addition to our cost out success, we have also implemented a new organisation structure, increased focus on maximising production across our assets, developed a clear, new strategy, and enjoyed exploration successes in WA and Papua New Guinea.”

The Santos chief also outlined the energy giant’s business strategy moving into 2017.

“We enter 2017 with a clear strategy and a solid platform off which we can build and grow.  Our business turnaround will continue as we reshape and focus our organisation to support five core, long-life natural gas assets: Cooper Basin, GLNG, PNG, Northern Australia and WA Gas,” he said.