Adelaide-based Santos (ASX: STO), Australia's third-largest oil and gas producer, announced yesterday it expects its net profit after tax to range from $180 million to $200m, far beyond analysts' general forecast of $152m.

The company's earnings before interest, tax, depreciation and exploration expense (EBITDEX), however, was believed to be "broadly in line" with analysts' predictions.

Santos' declaration comes at a critical time as the company attempts to secure buyers and equity partners for its planned $16 billion Gladstone liquefied natural gas project, where it has 60 per cent stake.

The equity sale will shore up Santos' finances and slash its share of capital expenses on the project, which is scheduled for a final investment move before the end of the year.

Weeks before the announcement, Santos also reported better-than-expected second-quarter revenue, steered by increasing local gas prices and higher sales.

While Santos shares gained 10c yesterday to $13.49, the investment community is generally unmoved by the run of good news as little progress has been made on the talks.

Last month, the Royal Dutch Shell had been reported to enter the bidding for a strategic stake in the GLNG project. It is competing with Korea Gas and Sinopec to acquire a stake of 9-20 per cent in GLNG that could be valued as much as $1bn.

The company is slated to announce its half-year results on August 26.