Highlights

  • STO reported 1HFY25 product sales revenue of USD 2,579 million, down 5%.
  • Barossa LNG Project is nearly complete and aims to deliver its first LNG cargo in Q4 2025.
  • Pikka Phase 1 project is over 95% complete, targeting first oil production in Q1 2026.

Santos Limited (ASX:STO) is an Adelaide-based oil and gas company founded in 1954. It is among Australia’s largest producers of natural gas and LNG, with operations spanning Australia, Papua New Guinea, Timor-Leste, and the United States, supplying both domestic markets and Asian LNG buyers.

Financial Update

In first half of the financial year 2025 (1HFY25), the company has reported product sales revenue of USD 2,579 million, down 5% year-on-year (YoY) from USD 2,711 million 1HFY24. Total revenue declined in 1HFY25, driven by lower realised prices amid weaker Brent and JCC benchmarks. Production for the period remained steady at 44.1 mmboe, consistent with the prior year. Net profit fell 31% YoY to USD 439 million in 1HFY25 from USD 636 million, impacted by lower pricing, higher impairments, restoration charges, and finance costs, partly offset by reduced taxes. During the same period cash and cash equivalents rose 10% to USD 1,830 million from USD 1659 Million in 1HFY24.

Business Update

On 16 October 2025, STO has released its third-quarter report for the period ended 30 September 2025, posting approximately USD 300 million in free cash flow, bringing the year-to-date total to about USD 1.4 billion. The company reported production of 21.3 mmboe and sales revenue of USD 1.1 billion.

Major projects remain on schedule — the Barossa LNG Project is set to deliver its first LNG cargo in Q4 2025, and Pikka Phase 1 is over 95% complete, targeting first oil in Q1 2026. Additionally, Moomba CCS Phase 1 has safely stored 1.3 Mt CO₂e, and Santos signed a mid-term LNG supply deal with Qatar Energy Trading LLC, along with three MOUs with ENGIE, Orica, and the Narrabri Shire Council.

Key Positives and negatives

STO’s has reported an increase in the current ratio rising to 1.27x in 1HFY25 from 1.11x in 1HFY24 and operating cash flows up 7.8% YoY 1HFY25. However, the gross margin declined to 36.1% in 1HFY25 from 38.9% in 1HFY24 and during the same period return on equity fell to 2.8% from 4.1% 1HFY24.

Business Outlook

The company has narrowed its FY25 production guidance to 89–91 mmboe from the earlier 90–95 mmboe, reflecting delays in the BW Opal FPSO start-up and extended Cooper Basin flood recovery into the fourth quarter. Sales volume guidance was also adjusted to 93–95 mmboe.

The Barossa LNG Project, now 98% complete, and the Darwin LNG facility, which has achieved RFSU, are expected to deliver first gas shortly, boosting production and cash flow from 2026 onwards. Meanwhile, the Pikka Phase 1 project is 95% complete, with first oil targeted for Q1 2026.

Share Performance

STO was trading at AUD 6.31 per share on 22 October 2025, down 0.16% intraday. Over the past three months, STO’s share price has declined by 19.2%, while it is up 6.05% over the last six months. Over the past year, shares are down 8.8%. The stock’s 52-week high of AUD 8.06 is recorded on 27 August 2025, and the 52-week low of AUD 5.20 is on 7 April 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 22 October 2025. The reference data in this report has been partly sourced from EODHD/Others.

 

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.