Macquarie sees softer Q2 production for Australia's Santos

STO

30/06/2023 05:43

** Analysts at Macquarie say second-quarter production
report of gas producer Santos Ltd  STO.AX  will highlight the
headwinds it faces with some assets reaching life-end or facing
near-term production issues
    ** Macquarie forecasts STO's Q2 production to be 21.7
million barrels of oil equivalent (mmboe), weakest in 14
quarters
    ** Brokerage sees revenue of $1.34 bln, weakest revenue in 8
quarters
    ** Brokerage says production weakened as Darwin LNG and
Devil Creek assets are near life end, and key Papua New Guinea
LNG and Gladstone LNG projects had slightly weaker shipments
    ** Macquarie analysts are looking out for improved
visibility on Barossa project resuming progress and signs that
PNG sell down is on track for August completion
    ** STO report Q2 production on July 20
    ** All 16 analysts covering the stock rate it "buy" or
higher, their median PT is A$8.75 - Refinitiv data
    ** STO last up 1.1% at A$7.540; has gained 4.5% this year as
of last close

 (Reporting by Himanshi Akhand in Bengaluru)
 ((Himanshi.Akhand@thomsonreuters.com;))