Australian LNG player Santos has seen its net debt cut by 23 percent as sales volumes increased in 2017.
Speaking of the results the company reported on Wednesday, managing director and chief executive officer, Kevin Gallagher said the company’s turn-around strategy surpassed expectations.
Sales volumes for the year were at 83.4 million barrels of oil equivalent which was above the upper end of guidance of 79-82 mmboe, the company said in its report.
Production was 3 percent below the 2016 figures reaching 59.5 mmboe, still reaching the upper end of guidance of 58-60 mmboe.
Paired with a rising average realized oil price, Santos saw its revenue jump 20 percent year-on-year reaching $3.1 billion, compared to $2.6 billion the year before.
For 2018, Santos expects sales volumes to be in the range of 72-78 mmboe with the production to be around 55-60 mmboe.
Capital expenditure in 2018 is expected to be $825-875 million and upstream unit production costs to be $8.20-8.80/boe produced, primarily due to a number of one-off planned maintenance shutdowns in 2018 at PNG LNG, Moomba and Darwin LNG.
Gallagher further added that the company plans to ramp up drilling activities in the Cooper basin in 2018. In 2017, a total of 61 new wells were drilled. In 2018, drill activity is expected to ramp-up with 70-80 wells expected to be drilled, including up to 20 exploration wells.