Australian independent LNG producer Santos reported a 22.6 percent drop in quarterly sales revenue as Covid-19 pushed down LNG prices.
The firm posted a third-quarter revenue of $797 million, compared to $1.03 billion last year and $785 million in the previous quarter.
Production increased 26.8 percent to a record 25.1 million barrels of oil equivalent.
Santos said its average realised LNG price was significantly lower than the prior quarter reflecting the linkage of sales contracts to a lagged Japan Customs-cleared Crude (JCC) price.
Three-month lagged JCC averaged $31/bbl in the third quarter compared to $68/bbl in the second quarter.
Furthermore, Santos’ LNG projects shipped 61 cargoes in the third quarter, of which 11 were spot cargoes.
Santos chief Kevin Gallagher said the firm expects the third quarter to represent the trough for LNG prices, with higher prices expected in the fourth quarter based on current JCC oil-linked and JKM spot pricing.
JKM is currently above $6/mmBtu for December delivery.
