Santos has lowered its full-year production guidance, citing operational challenges during the startup phase of two major growth projects in the Timor Sea and Alaska.
The delays have pushed a significant portion of the company’s anticipated output increase into the December half of the year.
Despite the volume setback, the Australian energy producer indicated that second-half production is still expected to exceed first-half levels by up to 30 per cent.
Management highlighted that a recent jump in liquefied natural gas (LNG) prices will help offset the timing mismatch, providing a boost to cash flow even as physical deliveries are deferred.
The guidance cut underscores the execution risks inherent in bringing complex offshore and remote projects online.
For investors, the shift in production timing alters the near-term revenue profile, even if the full-year volume potential remains largely intact.