Santos Beats Expectations Despite Barossa, Pikka Costs

Australian oil and gas producer Santos reported a better-than-expected first-half profit despite a year-on-year decline. The company's underlying profit fell to $397 million from $508 million a year earlier, while net profit after tax declined to $355 million from $439 million.

Santos attributed the decrease in profitability to higher costs associated with the start-up of Barossa LNG and Pikka projects. These costs offset increased production and broadly stable revenue. First-half production rose 3% year over year to 45.6 million barrels of oil equivalent, with Santos describing 2026 as a transition year.

The company expects production in the second half to be 20% to 30% higher than in the first half as Barossa and Pikka move toward steady-state output. Santos maintained its full-year production guidance of 99 million to 105 million boe.