Fourth quarter production of 14.9 mmboe was in line with the corresponding quarter and brought full-year production to 57.7 mmboe. This was the highest annual production since 2007, a 7% increase on the previous year and within the company’s guidance range of 57-59 mmboe.
Fourth quarter sales revenue of $828 million was 24% below the corresponding quarter, with the average realised oil price down 33% to A$61 (US$44) per barrel.
Full-year capital expenditure of $1.66 billion was below guidance and 54% lower than the prior year, while full-year production costs per barrel were 10% lower.
GLNG train 1 produced 544,000 tonnes of LNG during the fourth quarter and achieved daily LNG production rates more than 10% above nameplate capacity. GLNG has shipped 11 LNG cargoes to date.
In November, Santos announced $3.5 billion of capital initiatives to strengthen the balance sheet and reduce debt, and also the appointment of Kevin Gallagher as Managing Director and Chief Executive Officer.
Santos Executive Chairman Peter Coates said the company’s fourth quarter results reflect the company’s response to the challenging oil price environment. He said Santos will continue to review its operational and development plans with a focus on preserving cash. “Santos is well placed to withstand an extended period of low oil prices, with $4.8 billion in cash and committed undrawn debt facilities, and no material debt maturities until 2019.” “We are continuing to focus on reducing our capital expenditure and will build upon the significant improvements that we have made to our operating efficiency.” “PNG LNG and Darwin LNG operated at record rates during the fourth quarter, while GLNG has ramped up as expected following first LNG in late-September,” Mr Coates said.