Santos Revenue Climbs to $1.35 Bn as Barossa, Pikka Ramp Up
Synopsis
The energy producer reported $1.35 billion in June-quarter sales revenue, driven by stronger LNG prices and rising production as the Barossa and Pikka projects transitioned into operations.
Key Highlights
- Santos reported sales revenue of US$1.35 billion, a 6% increase compared to last quarter.
- Free cash flow was about US$378 million in the first half.
- Barossa is producing at 97% of expected rates while Pikka has come online.
Santos posted US$1.35 billion of sales revenue for the June quarter, a 6% increase on last quarter, strengthened by liquefied natural gas (LNG) prices and the continued ramp-up of its Barossa and Pikka projects.
Convert Cash Flow Impacted by Project Certification
Operating free cash flow was around US$378 million for the first half. This was influenced by Barossa and Pikka commissioning costs as well as the timing of cash across the half-year reporting date.
Combined free cash flow from operations from Barossa and Pikka was US$151 million. It was also 20% lower than the first half of 2025, as Barossa and Pikka projects were switching from development to commissioning and operations.
Barossa Production 97% of Planned Rates
The realised LNG price over the quarter was US$11.21 per million British thermal units, up 4.9% compared to the previous quarter.
The Barossa project is operating at 97% of the volumes as required with cargoes shipped currently occurring about every eight days, according to the company. The June quarter was negatively impacted by ramp-up challenges and receipts after the reporting period, it said.
Kevin Gallagher, Managing Director and CEO, said full-year production rose towards the end of the second quarter due to ramping up from Barossa and Pikka coming onstream.
He said the difficulties faced during commissioning activities have effectively pushed the transition to a larger production, higher cashflow-generating portfolio out until mid-year.
Source: Capital Brief
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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