Santos (STO) Q3 2025 earnings summary

Executive summary

• Generated ~$300 million in free cash flow from operations in Q3, totaling $1.4 billion year-to-date.

• Production reached 21.3 mmboe for the quarter, with year-to-date production at 65.4 mmboe.

• Sales revenue was $1.1 billion for Q3, contributing to $3.7 billion year-to-date.

• Major projects Barossa LNG and Pikka phase 1 are progressing, with Barossa LNG to ship first cargo in Q4 2025 and Pikka phase 1 first oil expected Q1 2026.

• Operational excellence and a disciplined, low-cost model underpin strong results and future growth.

Financial highlights

• Q3 sales revenue declined 12% sequentially to $1,129 million; year-to-date revenue down 7% year-over-year.

• Q3 production fell 4% sequentially but was flat year-over-year; sales volumes down 10% sequentially, up 1% year-over-year.

• Gearing at 22.9% (excluding leases), up due to BW Opal FPSO coming onto the balance sheet.

• Capital expenditure for Q3 was $631 million, up 17% sequentially; year-to-date capex at $1,784 million.

Outlook and guidance

• 2025 production guidance narrowed to 89–91 mmboe (from 90–95 mmboe) due to Barossa FPSO delays and Cooper Basin flood impacts.

• Sales volume guidance narrowed to 93–95 mmboe.

• Capital expenditure, unit production cost, and DDA guidance unchanged.

• Barossa LNG first cargo expected Q4 2025; Pikka phase 1 first oil Q1 2026, ramping to 80,000 bopd by mid-2026.