Santos Net Profit Up 51 Pct (Australia)

February 17, 2012

Australia’s Santos today reported a net profit of $753 million for 2011, 51% higher than the previous year.

The 2011 headline result includes a $408 million profit after tax from asset sales, including a 15% interest in the GLNG project and Santos’ entire interest in Evans Shoal, and asset impairments of $102 million after tax.

Underlying net profit of $453 million was 20% higher than 2010 primarily due to higher oil and gas prices, partially offset by a stronger Australian dollar and a higher effective tax rate.

Santos Chief Executive Officer David Knox said 2011 was highlighted by strong project delivery and good operational and financial results.

“We delivered four new projects in the base business on plan. These projects will drive our production growth in 2012.”

“Our LNG projects are on track for first production from PNG LNG in 2014 and GLNG in 2015,” Mr Knox said.

Full-year results highlights

Production 47.2 mmboe, down 5%
Sales volumes 57.1 mmboe, down 4%
Average A$ oil and gas prices up 32% and 9% respectively
Sales revenue $2,530 million, up 14%
EBITDAX $2,126 million, up 27%
EBIT $1,191 million, up 52%
Net profit after tax $753 million, up 51%
Underlying net profit after tax $453 million, up 20%
Operating cash flow $1,253 million, in line with 2010
Strong balance sheet, $7.5 billion of funding capacity
Final dividend of 15 cents per share fully franked with underwritten DRP.

[mappress]

LNG World News Staff, February 17, 2012