Santos Reports 2015 Results, Releases Reserves Statement

Santos Ltd. (ASX:STO) released its 2015 results, commenting that it incurred a net loss of $2.7 billion; that reflects after-tax impairments of $2.8 billion, as well as lower oil prices.
The company also released its reserves statement as of December 31, 2015. Proved plus probable petroleum reserves were 945 million barrels of oil equivalent as of that date, down 24 percent from 2014.
Other key points are as follows:

• Production up 7% to 57.7 mmboe
• Average realised oil price down 48% to US$54 per barrel
• Sales revenue down 20% to $3.2 billion
• Unit production cost per barrel down 10% to $14.40/boe
• EBITDAX down 17% to $1.9 billion
• Underlying net profit after tax of $50 million, down 91%
• Asset impairments of $3.9 billion before tax, $2.8 billion after tax
• Capital expenditure down 54% to $1.7 billion
• GLNG start-up on schedule, with train 1 production regularly exceeding 110% of nameplate capacity and 16 cargoes shipped to date
• Final dividend of 5 cents per share, fully franked, bringing the full-year dividend to 20 cents per share

Peter Coates, chairman of Santos, commented:

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.

Click here to read more about Santos’ 2015 results.
Click here to see the company’s reserves statement.