The Santos Ltd (ASX: STO) share price is down 0.7%.
Shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed yesterday trading for $7.81. In early morning trade on Wednesday, shares are swapping hands for $7.76.
For some context, the ASX 200 is down 0.1% at this same time.
This comes following the release of Santos' half-year results for the six months ending 30 June (H1 2023).
(*Note, all figures in US dollars.)
Image source: Getty Images
Santos share price pressured by sliding profits
- Revenue of $2.97 billion, down 21% from H1 2022
- Net profit of $790 million, down 32% year on year
- Underlying profit of $801 million, down 37% from H1 2022
- Interim dividend of 8.7 US cents per share, up 14% from the prior interim dividend
What else happened during the year?
Other core metrics that could be impacting the Santos share price today include the 23% year on year decline in 'earnings before interest, tax, impairment, depreciation and depletion, exploration and evaluation expensed, and change in future restoration assumptions' (EBITDAX), which came in at $2.11 billion.
Meanwhile, product sales fell 21% from H1 2022 to $2.97 billion. And free cash flow declined by 34% to $1.13 billion.
As for production, Santos reported producing 45 million barrels of oil equivalent (mmboe) during the half year, down from 51.5 mmboe in 2022.
Sales volume declined 15% to 47.1 million mmboe. This was reportedly due to a temporary shutdown of its John Brookes platform, reduced capacity from the Reindeer and East Spar fields due to water breakthrough, and Santos' Bayu-Undan asset approaching end-of-field life.
Management said the 21% decline in product sales revenue compared to H1 2022 was "due to lower realised pricing for all products other than domestic gas and ethane, combined with lower volumes, primarily as a result of lower production".
Santos achieved an average realised oil price of US$85.75 per barrel, down 26% year on year. The average realised LNG price decreased 7% to US$13.24/mmBtu.
What's next?
Looking at what could impact the Santos share price in the months ahead, the ASX 200 oil and gas company maintained its existing sales volume guidance in the range of 90 to 100 mmboe.
Production guidance was also maintained in the range of 89 to 93 mmboe for 2023.
Santos share price snapshot
The Santos share price is up 12% over the past six months.
