Santos posts significant loss

Santos has announced a net loss of AUS$2.7 billion in 2015. The company attributed the significant loss to after tax impairments of AUS$2.8 billion, which have been a reflection of the lower oil price environment. The charges are predominantly related to Santos’ Cooper Basin gas producing assets, GLNG assets and Gunnedah Basin assets.

The company’s underlying net profit fell 91% in 2015 to AUS$50 million, compared to the previous year.

Santos Chairman, Peter Coates, said: “Despite the continued pressure on the oil price, operationally the business performed well in 2015 with Santos delivering its highest production in seven years, best safety performance on record and the successful start-up of the GLNG project which has shipped 16 cargoes to date.

“It is a credit to management and staff to have maintained focus on safe and effective operations and project delivery in the face of the destabilising market conditions during the year.

“The actions the company took in 2015 to strengthen its balance sheet and lower its cost base have put Santos in a stronger position to manage through a period of low oil prices.”

The company has cut its capital expenditure guidance for 2016 to AUS$1.1 billion, while its production guidance for the year remains at 57 – 63 million boe.

Edited from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/19022016/santos-posts-significant-loss-2023/