Santos has reported a net loss of $935 million for the full year 2014, reflecting previously announced tax impairments of $1563 million.
Commenting on the results, CEO David Knox said that despite the reported loss, Santos made significant progress in 2014. The company remains positive about the Papua New Guinea LNG (PNG LNG) and Gladstone LNG (GLNG) projects.
Knox said: “Our results today reflect the many achievements of the company in 2014, highlighted by the start-up of PNG LNG ahead of schedule and the commencement of commissioning the GLNG project.
“Santos also delivered its highest production in five years, record sales revenue and strong operating cash flow.
“The underlying performance of our business remains strong and we look forward to further production growth in 2015 with the start-up of GLNG in the second half of this year, within the US$18.5 billion budget.
“The bottom line result nevertheless reflects the impact of the unexpectedly sharp down-turn in oil prices towards the end of the second half in particular which saw us recognise significant non-cash asset impairments announced earlier this month.
Costs and capital
“We will continue to proactively manage our costs, both capital and operating, in line with the current market environment. Capital expenditure in 2015 is forecast at $2 billion, 44% lower than 2014, and we expect to reduce production costs per barrel by 10%. Costs will be tightly managed as we work through the current oil price environment.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/20022015/santos-positive-despite-2014-loss-290/