Output helps boost Santos HY profit 89%

Santos has posted an 89 per cent jump in half-year profit, boosted by its acquisition of Quadrant Energy and strong output from its Cooper Basin fields in South Australia.

Santos acquired Quadrant Energy last year in a $US2.15 billion deal and in turn received an 80 per cent stake in the promising Dorado oil find.

Australia’s No.2 independent gas producer on Thursday increased its forecast on savings from the acquisition to between $US50 million and $US60 million ($A74 million and $A88 million) a year, from $US30 million to $US50 million.

The Quadrant assets, along with the gas-rich Cooper Basin in Queensland, is the largest source of gas for Santos, which also operates in Papua New Guinea.

It also lowered its capital spending forecast for the year to between $US950 million and $US1.05 billion, from about $US1.1 billion.

Santos’ underlying profit for the half-year ended June 30 rose to $US411 million from $US217 million a year earlier, beating Citi estimates of $US377 million.

The company declared an interim dividend of 6.0 US cents a share, compared with 3.5 US cents last year when it revived payouts after grappling with debt for more than two years.

Santos shares were $7.04 after the start of trade on Thursday, up 2.62 per cent from Wednesday’s close.

AAP

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