Santos, one of many largest Australian oil and gasoline firms, has reported a 13 per cent fall in first-quarter gross sales income amid a slowdown in manufacturing and softening of fossil gas costs from final yr’s report highs pushed by a historic world power disaster.
Adelaide-based Santos on Thursday stated it had earned gross sales income of $US1.6 billion ($2.4 billion) for the three months to March 31 whereas manufacturing volumes slipped to 22.2 million barrels of oil equal.
Costs for Australian cargoes of LNG in Asia have fallen from report ranges after a comparatively heat northern winter.
Credit score: AP
The manufacturing end result was barely decrease than most analysts’ expectations, however income was according to forecasts.
Santos managing director Kevin Gallagher stated the corporate had continued to carry out strongly within the face of mounting “regulatory and financial uncertainty”. Santos and different east-coast gasoline producers are beneath mounting stress from a variety of presidency measures to tame hovering power prices, together with laws capping home gasoline gross sales at $12 a gigajoule for 12 months, and reforms that give the federal government the extra common means to divert exports to the home market to go off potential shortages.
Earlier this week, the Albanese authorities stated it was weighing whether or not to boost taxes on the gasoline sector’s hovering earnings by way of reforms to the $2 billion-a-year Petroleum Assets Lease Tax (PRRT).
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“The disciplined working mannequin we’ve got in place positions us to ship on our technique,” Gallagher stated.
The nation’s $91 billion LNG business has loved report earnings over the previous yr as Russia’s invasion of Ukraine roiled world power markets, intensified competitors for spare cargoes of oil and pure gasoline, and ignited costs.
Costs of liquefied pure gasoline (LNG) shipped from Western Australia and Queensland reached unseen highs up to now two years, however at the moment are declining as a consequence of wholesome stockpiles and milder climate within the northern hemisphere, which has decreased the necessity for households to show up their heaters.
