Australia's Santos Year Profit Down 17%, Costs Bite

Reuters

MELBOURNE, Feb 21 (Reuters) - Santos Ltd, Australia's second biggest oil and gas producer, reported a 17 percent fall in annual underlying profit on Friday, missing market forecasts as costs rose.

While investors are focused on challenges Santos is facing on its biggest growth project, the $18.5 billion Gladstone liquefied natural gas (LNG) project due up in 2015, the company is set to benefit this year from first exports at the Papua New Guinea LNG project.

The PNG LNG project, in which it owns a 13.5 percent stake, is due to start in the third quarter and will help increase the group's production to between 54 and 57 million barrels of oil equivalent (mmboe), from 51 mmboe last year.

"Our operating cash flow will more than double over the next two years as the PNG LNG and GLNG projects come on-line. We are focused on rewarding shareholders as we strike a balance between higher dividends, debt repayment and ongoing investment for growth," Santos CEO David Knox said in a statement.

Underlying profit fell to A$504 million ($453 million) in 2013 from A$606 million a year earlier. Analysts on average had expected an underlying profit of A$553 million, according to Thomson Reuters I/B/E/S.

Santos shares last traded at A$14.27, having climbed 13 percent over the past year, about double the gain in the broader market.

($1 = 1.1134 Australian dollars)

(Reporting by Sonali Paul; Editing by Richard Pullin)

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Automation Systems Analyst II
Expertise: Business Development
Location: Houston, TX
 
Automation Engineering Manager
Expertise: Electrical Engineering|Engineering Manager
Location: Houston, TX
 
Instrumentation & Electrical Project Estimator
Expertise: Electrician|Estimating|Project Management
Location: Spring, TX
 
search for more jobs

Brent Crude Oil : $53.96/BBL 0.35%
Light Crude Oil : $51.36/BBL 0.21%
Natural Gas : $3.209/MMBtu 0.34%
Updated in last 24 hours