Citi says Santos' June qtr production & rev misses estimates; maintains rating

STO

24/07/2022 20:45

** Analysts at Citigroup say Australian gas producer Santos
Ltd  STO.AX  June qtr production was marginally lower than Citi
expectations; maintains rating at 'Buy', TP at A$8.60
    ** STO reported 74% jump in second-quarter revenue on
soaring liquefied natural gas (LNG) prices on account of
Russia's invasion of Ukraine  urn:newsml:reuters.com:*:nL4N2Z13P2
    ** STO also narrowed production and sales volume 102-107
mmboe and 110 to 116 mmboe while production cost guidance is
lowered to $7.90-8.30/boe
    ** Citi says quarterly production of 25.5 Mmboe was 4% down
while revenue was 9% below its expectations
    ** Adds that following updated guidance CY22 EBITDAX remains
unchanged at $6.2 bln
    ** 13 of 16 analysts rate the stock "buy" or higher, three
"hold"; their median PT is A$9.41 – Refinitiv data
    ** STO up 11.4% this year

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))