Highlights:

  • Santos was trading at AUD 8.36, up 3.08% during the afternoon Trading session on 19 August 2026.
  • First-half production increased 3% to 45.6 million barrels of oil equivalent (mmboe).
  • Sales Revenue reached US$2.6 billion, with EBITDAX of US$1.6 billion.
  • Pikka achieved first oil in May 2026, with first crude cargo lifted in August 2026.
  • Santos declared an Interim Dividend of US 11.6 cents per share, totalling US$377 million.

Santos Limited (ASX:STO) has reported its half-year results for 2026, highlighting increased production, progress across major growth projects and continued performance from its existing asset portfolio.

Santos was trading at AUD 8.36, up 3.08% during the afternoon trading session on 19 August 2026, while the company’s shares remained up 7.87% over the past year. The company’s results covered the transition of Pikka into production, Barossa commissioning progress and financial performance across the first half of 2026.

Production Growth Supported by New Project Start-Ups

Santos recorded first-half production of 45.6 million barrels of oil equivalent (mmboe), increasing 3% compared with the prior corresponding period.

The company reported sales revenue of US$2.6 billion, EBITDAX of US$1.6 billion and net profit after tax of US$355 million. Underlying Profit was US$397 million for the period.

Free Cash Flow from operations was US$378 million, with Santos noting the result was affected by Barossa and Pikka commissioning activities, cargo timing around 30 June and a Papua New Guinea under-lift position of around 1.3 million barrels of oil equivalent.

The company expects these impacts to unwind during the second half as production increases and the under-lift position reverses.

Pikka Reaches First Oil Milestone

Santos achieved first oil from the Pikka project in May 2026, with continuous production commencing in June.

The company lifted its first Crude Oil cargo in August 2026, with the initial cargo containing 450,000 barrels.

Production at the end of the first half was approximately 23,000 barrels per day gross, with Santos targeting a gross plateau production rate of 80,000 barrels per day in late Q3 2026.

The company stated that seawater injection, continued well inventory build and progressive process system start-up will support the ramp-up towards plateau production.

Barossa Progresses Through Commissioning

The Barossa LNG project continued progressing through commissioning and ramp-up activities during the period.

Santos reported that Barossa delivered seven LNG cargoes by the end of June, with a further five cargoes delivered since 1 July 2026.

The project is currently producing around 550 million standard cubic feet per day (mmscf/d), with production expected to increase towards approximately 600 mmscf/d by the end of the quarter.

Darwin LNG recorded 100% plant reliability during the first half, supporting ongoing operations.

Dividend Declared as Balance Sheet Remains Positioned

Santos’ Board declared an interim dividend of US 11.6 cents per share, totalling US$377 million.

The company reported gearing of 23.2% excluding operating leases, or 28.1% including leases.

Liquidity stood at US$3.8 billion, including US$1.1 billion in cash and US$2.6 billion in undrawn committed facilities.

Santos stated that there are no Debt maturities until September 2027.

Papua LNG and Moomba Projects Remain Strategic Priorities

Santos continues to progress the Papua LNG project, with a Final Investment Decision targeted for Q4 2026.

Project financing discussions are progressing, with Santos targeting at least 60% of funding through project financing facilities.

The company also announced a Final Investment Decision on the Moomba Central Optimisation project, which targets more than US$600 million in Capital and operating cost savings over the life of the Central Fields.

The project is also expected to reduce Cooper Basin unit production costs by up to US$3 per barrel.

Base Business Supports Operational Performance

Santos reported continued performance across its existing asset portfolio during the first half.

The company recorded no lost-time injuries and no Tier 1 process safety incidents, while reporting its best personal safety result on record.

Moomba Carbon Capture and Storage (CCS) has stored approximately 2.3 million tonnes of carbon dioxide equivalent since start-up.

The company also reported production improvements from existing operations, including Halyard-2 gas production in Western Australia and Cooper Basin activities.

Second-Half Production Growth Expected

Santos expects second-half production to increase approximately 20% to 30% compared with the first half as Pikka and Barossa continue ramping up.

The company’s 2026 guidance includes production volumes of 99–105 mmboe, sales volumes of 102–108 mmboe and total Capital Expenditure of approximately US$1.95 billion to US$2.15 billion.

Santos continues targeting a free cash flow breakeven oil price of US$45–50 per barrel through 2030.

Investor Takeaway

Santos’ half-year results highlight a transition period as new production from Pikka and Barossa progresses alongside continued contributions from its existing assets.

Investors may continue monitoring production ramp-up at Pikka and Barossa, Papua LNG development milestones, capital management priorities and the company’s targeted reduction in net debt.