Santos Begins Loading First Cargo at Barossa LNG, Shares Rise Nearly 5%
Santos shares rose nearly 5% after the company confirmed the commencement of loading its first cargo at the Barossa LNG project, alleviating investor concerns about commissioning risks. This shift in focus allows for greater attention on Santos' overall growth portfolio.
Citi analyst Tom Wallington indicated that the successful cargo loading should mitigate worries about issues during Barossa's start-up phase. Santos reported December-quarter production of 22.3 million barrels of oil equivalent, aligning with Citi's expectations but slightly below broader consensus estimates.
Sales figures exceeded forecasts due to seasonal factors at GLNG and timing of LNG cargoes at PNG LNG, driving revenue above expectations. Santos’ 2026 production guidance fell short of consensus, but unit cost guidance was significantly lower than market predictions.
The balance sheet remains strong, supported by free cash flow and asset sales. Santos shares were trading up by 4.5% following this announcement.
