Woodside, Santos reap the benefits of merger deal
Santos, which absorbed Oil Search in December 2021, posted cash flows for the half of June of US$1.7 billion, three times its mid-June level last year. Woodside reported a 44 percent increase in revenue in the June quarter to $3,438 billion, driven by a one-month contribution from BHP assets, which were repossessed on June 1. Bernstein Research analyst Neil Beveridge described Woodside as a “key holder in a world of LNG shortages”, noting that despite investments in new growth projects such as the $16.5 billion Scarborough gas venture, Woodside will still be able to generate more than 10 percent of free cash flow proceeds this year. this, which should cover dividends. But strong oil prices meant Woodside had to scrap plans to sell a stake in the $4.6 billion Sangomar oil project off the coast of Senegal that was due to go online next year after lengthy discussions with potential buyers. “When we have oil coming into the market in the near term, our expectations of fair value, are quit