Santos lifts June quarter sales revenue to $1.35 billion, up 6% on the prior three months as liquefied natural gas prices strengthen and key growth assets ramp up. Higher LNG pricing combines with increased activity at the Barossa and Pikka developments which are shifting from pure build-out to early operations. That transition supports top-line growth but also introduces commissioning costs and short-term timing issues.
Across the first half, Santos generates around $378 million in free cashflow from operations, a figure weighed down by commissioning expenses at Barossa and Pikka and the timing of cargo loadings around the reporting cut-off. Those two projects together post a free cashflow from operations loss of $151 million, underlining the cost of bringing large-scale oil and gas assets online. Capital expenditure for the period lands about 20% below the first half of 2025 because Barossa and Pikka shift from heavy development spending into the commissioning and operating phase.
The latest employment figures, released alongside the company update, show a similarly headline-grabbing jump but with a more nuanced underlying story. National employment rises by 76,300 in June, smashing market forecasts of a 15,000 gain and suggesting robust hiring momentum.
Most of that surge stems from a bigger labour force rather than a sudden demand shock, with the participation rate leaping from 66.7% to 67%, its highest level in 11 months. Because more people enter the job market at the same time, the unemployment rate stays anchored at 4.4%.
