Santos' production down, revenue up SANTOS has cut its production forecasts, but higher gas prices have helped boost the energy company's revenue. The company has cut its 2013 production guidance to 52- to 55 million barrels of oil equivalent (mmboe), down from 53 to 57 mmboe previously. Santos shares have dropped 44 cents, or more than three per cent, to $13.83 since the announcement on Friday morning. But Morningstar analyst Mark Taylor said Santos' quarterly production report suggested the company's half-yearly earnings may actually be higher than previously expected. The company recorded a record average gas price of $5.61 a gigajoule in the June quarter, which Mr Taylor said would likely offset the weaker production. "They had lower production but higher than expected sales revenue and things are looking pretty positive for them in the long term," he said. Santos' revenue rose to $797 million in the quarter, up eight per cent compared to a year ago. Also, while gas production was hurt by disruptions at some of the company's sites, oil production actually increased over the quarter. "The oil component of production is higher than anticipated and oil is the most lucrative in terms of profit, so it more than makes up for things from our perspective," Mr Taylor said. Santos said it revised its production guidance lower in part due to power problems with the offshore production and shipping facility that is stationed in the Chim Sao oil field in Vietnam. Santos said it produced 12.4 mmboe of oil in the June quarter, up two per cent from the previous quarter.