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Summary

Santos 2008 Half Year Results

Highlights

  • Product sales revenue up 14% to a first half record $1,384 million.
  • EBITDAX up 6% to a first half record $1,032 million.
  • Net profit after tax up 58% to $304 million.
  • Underlying net profit after tax up 30% to $289 million.
  • Operating cash flow up 30% to a first half record $699 million.
  • Sale of a 40% interest in the integrated Gladstone LNG (GLNGTM) project to PETRONAS for US$2.5 billion. Profit on sale will be reported in the second half.
  • Interim dividend up 10% to 22 cents per share fully franked.
  • Off-market share buy-back of $300 million.

Santos today announced a 58% increase in net profit after tax to $304 million for the half year ended 30 June 2008. Sales revenue, EBITDAX and operating cash flow were all at record levels for the first half.

Sales revenue increased by 14% to $1.4 billion. Higher commodity prices were evident across the Santos portfolio, with average realised Australian dollar oil, condensate and natural gas prices increasing by 45%, 42% and 4% respectively.

Earnings before interest, tax, depreciation, amortisation and exploration (EBITDAX) increased by 6% to $1,032 million and underlying net profit after tax increased by 30% to $289 million.

Production of 27.6 million barrels of oil equivalent for the half year was 8% lower than last year, primarily due to higher downtime at producing assets in Western Australia, including the impact of the Varanus Island incident on John Brookes production, partially offset by new production in Asia and higher production of coal seam gas.

Production costs increased in line with company guidance, primarily due to new production from Oyong (Indonesia) combined with higher costs in the Cooper Basin.

Operating cash flow increased by 30% to a first half record $699 million, primarily reflecting higher operating results and lower tax payments.