Santos' 2015 Capital Expenditure Drops Over 50%

Santos on Friday said its 2015 full year capital expenditure of $1.66 billion was 54 percent lower than the prior year.

Its fourth quarter production of 14.9 mmboe was in line with the corresponding quarter and brought full-year production to 57.7 mmboe. This was the highest annual production since 2007, a 7 percent increase on the previous year.

Fourth quarter sales revenue of A$828 million was 24% below the corresponding quarter. Annual sales revenue slid 20 percent to A$3.2 billion.

Santos Executive Chairman Peter Coates said the company’s fourth quarter results reflect the company’s response to the challenging oil price environment. He said Santos will continue to review its operational and development plans with a focus on preserving cash.

“We are continuing to focus on reducing our capital expenditure and will build upon the significant improvements that we have made to our operating efficiency,” Coates said.

GLNG train 1 produced 544,000 tonnes of LNG during the fourth quarter and achieved daily LNG production rates more than 10 percent above nameplate capacity. GLNG has shipped 11 LNG cargoes to date.

In November, Santos announced A$3.5 billion of capital initiatives to strengthen the balance sheet and reduce debt.