Australia: Santos Posts Lower Profit

Santos announced a net profit of $519 million after tax for the year ended 31 December 2012. The previous year comparable profit of $753 million included gains on asset sales of $408 million after tax.

The 2012 result includes $77 million of after tax impairments. Underlying net profit was up 34% to $606 million. Growth in underlying profit was driven by higher liquids volumes and gas prices, partially offset by higher costs primarily due to new assets on line.

Chief Executive Officer David Knox said that Santos had delivered a strong set of financial results across its base business with record sales revenue up 18% to $3.2 billion and underlying profit up 34% to $606 million. “Santos achieved its highest oil production in four years, strong operating cashflow, a material gas discovery at Crown and Australia’s first commercial production of gas from a shale well.”

“Production increased by 10% in 2012 driven by new assets in Western Australia and Vietnam, and strong Cooper oil production. We expect a further lift in production in 2013.”

“Our LNG projects are poised to deliver significant shareholder value and remain on schedule with PNG LNG on track for first LNG in 2014 and GLNG in 2015. Capital cost estimates for both projects are unchanged.”

“We continue to make good progress on our offshore oil projects with construction of Fletcher Finucane ahead of schedule and expected to commence production by midyear, and first oil from Dua expected as planned in the first half of 2014.” Mr Knox said.

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LNG World News Staff, February 22, 2013