By David Winning

SYDNEY--Santos Ltd. said its oil and natural gas production rose by 18% in 2020, achieving the top end of guidance that the energy company upgraded only last month.

Santos reported annual output of 89 million barrels of oil equivalent, supported by production of 25.4 million barrels in the final quarter of the year. In December, Santos had guided the market to annual output of 87 million-89 million BOE.

Fourth-quarter sales revenue of US$922 million was 16% higher than the previous three months, mainly due to a 23% uplift in sales volumes of liquefied natural gas and a 25% increase in prices. For the year, sales revenue totaled US$3.4 billion after the company's sales volumes reached 107.1 million BOE.

"2020 saw us ride through the bottom of the cycle while still generating free cash flow and deliver a record 4.3 million tons of Santos-equity LNG sales," said Chief Executive Kevin Gallagher.

Mr. Gallagher said the company's LNG projects currently have 10 spot cargoes scheduled to move in the first quarter of 2021.

Spot cargoes are being closely watched by investors and analysts after February futures for Asian LNG hit nearly US$20 per million British thermal units. As recently as mid-December, they were only trading around US$8 per MMBtu.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

01-20-21 1706ET