Santos today announced a 2015 net loss of $2.7 billion, impacted significantly by impairments of $2.8 billion after tax. The impairment charges are primarily a reflection of the current oil price environment and relate predominantly to the company’s Cooper Basin gas producing assets, GLNG assets and Gunnedah Basin assets.
Underlying net profit after tax was $50 million, 91% lower than the previous year.
Chairman Peter Coates said Santos’ 2015 financial performance reflected the impact of lower global oil prices that had been experienced across the oil and gas industry.
“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 raised $3.5 billion, reduced capital expenditure by 54% below 2014 levels and lowered production costs per barrel by 10%. With $4.8 billion in cash and committed undrawn debt facilities and no material drawn debt maturities until 2019, Santos is well placed to deal with the short term challenges,” Mr Coates said.
2016 production guidance is maintained at 57 to 63 mmboe, while capital expenditure guidance has been cut to $1.1 billion.