Santos Australia targets higher output in 2025, pinning hopes on Barossa Project

Santos, Australia's largest oil and gas company, forecast higher production for fiscal 2025 based on the expectation that Barossa will start production this year. The company also reported a sequential increase in its fourth quarter revenue on Thursday.

Santos is the second largest independent gas producer in the country. Santos, the country's no.

Visible Alpha's consensus was 89.9 million mmboe.

If gains continue, shares could rise as high as 1.7% at A$7.250. This would be the best day for trading since January 13, 2013. As of 0046 GMT, the broader ASX 200 was down by 0.3%.

Santos said that its primary goal for 2025 was to complete the Barossa Gas Project and Pikka Gas Project on time and within budget.

According to the company, the first gas is expected from the $4.3 billion Barossa Project in the third quarter this year. The project is nearly 90% completed.

Kevin Gallagher, Santos' Chief Executive Officer, said that the company continues to expand its LNG capacity in order to meet customer demand. Volumes are expected to grow significantly when Barossa comes online in 2025.

Santos' CEO also expressed optimism about the long-term LNG market in Asia, saying that the company "positions Santos for lower cost, lower CO2 LNG to be supplied to the Asia Pacific Region until at least 2040".

The Adelaide-based oil company reported sales of $1.40bn for the December quarter, an increase of 10% quarter-on quarter.

Citi analysts wrote in a report that "Sales revenue was $1.4bn, which was in line with the consensus but a result of stronger sales and an oilier mix."

Santos’ top line was also boosted by increased crude oil, LNG, and condensate volumes as well as improved sales during the December quarter.

(source: Reuters)