Key highlights

  • Santos reported first-half 2026 production of 45.6 mmboe, up 3%, and net profit after tax of US$355 million on 19 August 2026.
  • The Interim Dividend was US 11.6 cents per share unfranked, totalling US$377 million.
  • Pikka first oil was achieved in May 2026, and Barossa is producing at around 550 mmscf/d.

Santos Limited (ASX:STO) announced its half-year results for 2026 on 19 August 2026. The document provided is a half-year result rather than a full-year annual report. The company described a period of transition as the Pikka project began production and Barossa progressed through commissioning and ramp-up. Figures are in US dollars.

About Santos

Santos is an oil and gas company with Assets in Australia, Papua New Guinea and Alaska, and it supplies LNG and gas to domestic and international customers. It is also developing carbon capture and storage at Moomba.

First-half results

Production was 45.6 mmboe, up 3%. Sales Revenue was $2.6 billion, EBITDAX was $1.6 billion, net profit after tax was $355 million and Underlying Profit was $397 million. Free Cash Flow from operations was $378 million, which the company said reflected commissioning activities at Barossa and Pikka, cargo timing around 30 June and a PNG under-lift position of about 1.3 million barrels of oil equivalent, expected to unwind early in the second half.

Dividend and balance sheet

The board declared an interim dividend of US 11.6 cents per share, unfranked, totalling $377 million. Gearing was 23.2% excluding operating leases and 28.1% including leases. The company reported Liquidity and no Debt maturities until September 2027.

Pikka, Barossa and Moomba

Pikka first oil was achieved in May, continuous production began in June, and the first Crude Oil cargo was lifted in August 2026. Barossa delivered seven cargoes by the end of June, with another five since 1 July, and is producing at around 550 mmscf/d. The company said its best personal safety result on record included no lost-time injuries. Moomba carbon capture and storage has stored around 2.3 million tonnes of CO2 equivalent since start-up.

Risks to consider

Free cash flow was affected by commissioning and timing effects that the company expects to reverse, which is not certain. Pikka and Barossa are still ramping up, and delays or lower output would affect results.

Earnings are exposed to oil and LNG prices and to project execution, and the interim dividend is unfranked. Gearing rose when leases are included, at 28.1%, and operations in Alaska, Papua New Guinea and Australia each carry regulatory and operating risks.

Catalysts to watch

Items to watch include Pikka and Barossa production ramp-up, the unwind of the PNG under-lift position, additional Barossa cargoes, free cash flow in the second half, and Moomba carbon capture volumes.