RBC says Australia's Santos Q1 to benefit from robust energy prices

STO

20/04/2022 07:03

** RBC Capital Markets estimates Q1 sales revenue for
Australia's Santos  STO.AX  of $2.14 bln, benefiting from higher
realised oil, condensate and LNG pricing
    ** Brent oil price averaged $97.7/bbl over March 2022
quarter, 23% above Dec quarter; and NE Asian spot LNG price 
averaged about $33.5/mmbtu, 23% above Dec quarter
    ** RBC says although high north-east Asian spot LNG prices
should help STO's sales revenue, its capture is dependent on the
timing and amount of spot LNG sales made
    ** Additionally, brokerage estimates Santos' Q1 sales
volumes of 30.8 million of barrels of oil equivalent (mmboe),
above expected production due to third-party sales
    ** RBC expects STO to maintain 2022 production outlook of
100-110 mmboe vs estimate of 109.4 mmboe; sales volume of
110-120 mmboe vs estimate of 119.5 mmboe
    ** Brokerage maintains rating at "outperform", PT of A$9.00
    ** Twelve of 15 analysts rate the stock "buy" or higher,
three "hold"; median PT is A$9.80 – Refinitiv Eikon


 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))