Australian LNG operator Santos further reduced its debt and costs in the first quarter of 2017, as sales revenue rose compared to the corresponding quarter year.
The company reported a revenue of US$684 million, up 14 percent from $600 million in the first quarter of 2016.
Speaking of the results, the company’s managing director and CEO Kevin Gallagher said the 2017 forecast free cash flow breakeven has been reduced from $47 per barrel mark at the beginning of 2016 to $34 per barrel.
“Strong free cash flow combined with cash proceeds from asset sales and the share purchase plan enabled us to reduce net debt by $380 million in the first quarter,” Gallagher said.
The net debt currently stands at $3.1 billion, down from $3.5 billion at the start of the year and the company is still targeting a $1.5 billion reduction in net debt the end of 2019.
In April the company made an early repayment of $250 million of its $1.2 billion export credit agency supported uncovered syndicated facility, scheduled to mature in 2019, and extended the term of $860 million of bilateral bank loan facilities to 2022.
Santos noted in its quarterly report that the 2017 guidance remains unchanged with capital $700-750 million range.