Santos lifted total revenue for the three months to March 31 to $US684 million from $US600 million for the prior corresponding period, despite three PNG liquefied natural gas cargoes still being on water at the end of the month.

Net debt dropped to $US3.1 billion from $US3.5 billion at the end of the prior quarter.

Santos CEO Kevin Gallagher said the first quarter results demonstrated the success of the company’s “turnaround strategy”.

“Our costs have again been reduced, we have improved our free cash flow position and our net debt has been lowered,” he said in a statement.

“Our 2017 forecast free cash flow breakeven now stands at US$34 per barrel. This is a significant reduction from the $47 per barrel mark at the beginning of 2016.”

Santos said total first quarter production of 14.8 mmboe was down slightly on the previous quarter, primarily due to sale of the Victorian, Mereenie and Stag assets, and partially offset by higher GLNG equity production.

“Total sales volumes of 18.6 mmboe were lower due to asset sales, lower third party volumes and the timing of liftings.”

The company said all guidance for 2017 was maintained.

– with AAP