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Summary

Santos today announced a net profit of $262 million after tax for the half-year ended 30 June 2012. The headline half-year result is lower than the corresponding period which included gains on asset sales of $246 million.

Santos reports $262 million net profit for the first half of 2012

Santos today announced a net profit of $262 million after tax for the half-year ended 30 June 2012. The headline half-year result is lower than the corresponding period which included gains on asset sales of $246 million.

Underlying net profit of $283 million for the first half is up 20% primarily due to higher gas and liquids prices and sales volumes, partially offset by higher cost of sales and exploration expense.

Chief Executive Officer David Knox said that Santos had lifted production by 11% in the first half, driven by on-time project start-ups, record Western Australian gas production and progress in recovery of production constrained during 2011 by flooding in the Cooper Basin.

“First half production was the highest in three years which combined with higher oil and gas prices has produced a strong first half result. The base business is performing well and we expect production in the second half of the year will be stronger than the first.”

“We also announce today success in our Cooper Basin shale gas program with the Moomba-191 well having flowed dry gas at a stabilised rate of 2.6 mmscf/d. The well is located within 350 metres of the existing gas gathering infrastructure, and connection activities have commenced to provide Australia’s first commercial production of gas from a shale well.”

“Our LNG projects remain on schedule with PNG LNG on track for first LNG in 2014 and GLNG in 2015,” Mr Knox said.

First half highlights

  • Production up 11% to 25.4 mmboe
  • Sales revenue up 27% to $1,493 million
  • EBITDAX (excluding gains on asset sales) up 18% to $876 million
  • Net profit after tax down 48% to $262 million
  • Underlying net profit after tax up 20% to $283 million
  • Capital cost estimate for the GLNG project increased to US$18.5 billion
  • Moomba-191 shale well flowing gas at 2.6 mmscf/d
  • Fletcher Finucane and Dua oil projects sanctioned
  • Interim dividend of 15 cents per share fully franked