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Santos narrows full-year loss to $US360m

Prashant Mehra  |  21 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Oil and gas producer Santos (STO) has reported a full-year loss of $US360 million ($A456.8 million) due to impairments on its Gladstone LNG project in Queensland and other assets recorded in the first half of 2017.

The company made a loss of $US1.05 billion in 2016.

Excluding the significant items, underlying profit in 2017 jumped nearly five-fold to $336 million, as gas prices improved and Santos reduced its operating costs.

Chief executive Kevin Gallagher said the results demonstrated a significant turnaround in performance for Santos.

"We have removed substantial costs, reported a material increase in underlying profit, generated significant free cash flow and reduced net debt," he told analysts.

Production and sales volumes were slightly lower in 2017, though sales still beat guidance of 79 to 82 million barrels of oil equivalent.

Revenue rose 21 per cent from 2016 to $US3.2 billion, driven by a 25 per cent improvement in average realised oil prices, and a ramp-up at the Gladstone LNG project.

The company has maintained its previously outlined guidance for 2018, including sales of between 77 and 82 mmboe.

Santos said it cut net debt by 22 per cent during the year to $US2.73 billion, and its board had decided not to pay a final dividend, given its focus on debt reduction.

Mr Gallagher said the board will consider capital management strategies to return value to shareholders if market conditions remain supportive and the company achieves its debt reduction target ahead of plan.

Santos shares were down 13 cents, or 2.5 per cent, at $5.05 at 1150 AEDT.

SANTOS NARROWS ITS FULL-YEAR LOSS

* Net loss of $US360m vs $US1.05bn loss

* Revenue up 21pc to $US3.2bn

* No final dividend, unchanged

 

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is a freelance journalist.

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© 2020 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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