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PNG LNG project boosts Santos results

LNG Industry,

Santos has announced its 2014 first half results, psoting an underlying net profit of AU$ 258 million, up 3% from the same period last year. The company said that rise in profits were due to the early start-up of the PNG LNG project, which commenced production ahead of schedule in April.

Santos Chairman, Ken Borda, said the start-up of PNG LNG and receipt of first cash from the project had contributed to a substantial increase in returns to shareholders through a 33% increase in the interim dividend to 20 cents per share fully franked.

The 2014 first half result reflects record sales revenue driven by higher crude oil and LNG sales volumes, and higher oil and gas prices, offset by the previously announced non-cash impairment of the company’s Indonesian coal-seam gas assets, and higher cost of sales, exploration expense and net finance costs.

David Knox comments

Managing Director and CEO David Knox, said: “The first half of 2014 saw Santos achieve its highest oil production in six years, record sales revenue and strong operating cash flow,” adding: “We have set the foundation for a stronger second half.”

Mr Knox said that the PNG LNG project was producing at full capacity and that the Gladstone LNG (GLNG) project was over 85% complete, on track for start-up in 2015 and within budget.

"We remain focussed on growing shareholder returns as the company’s earnings and cash flows increase,” Mr Knox said.

Adapted from press release by Ted Monroe

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