Santos' 2019 Underlying Profit Drops 1%

Australia’s Santos February 20 reported a 1% yr/yr drop in the underlying profit for the year that ended on December 31, 2019.

Underlying profit fell to US$719mn last year, from US$727mn in 2018, Santos said. Net profit after tax, however, was up 7% yr/yr to US$674mn.

Santos CEO Kevin Gallagher said the year was highlighted by record onshore drilling performance, lower unit costs, integration of the Quadrant acquisition and significant progress on company’s projects.

"The acquisition of ConocoPhillips assets in northern Australia and Timor-Leste announced in October is fully aligned with our growth strategy to build on existing infrastructure positions and delivers operatorship and control of strategic LNG infrastructure at Darwin,” he said. "The acquisition is expected to complete around the end of the first quarter of 2020, subject to third-party consents and regulatory approvals.”

Following completion of the ConocoPhillips' acquisition, Gallagher said, Santos expects to take a final investment decision on the Barossa project to backfill Darwin LNG in the second quarter.

"Barossa is making good progress towards FID, with technical assurance processes well advanced and key contracts for the FPSO, subsea production system and export pipeline all awarded. The Barossa and DLNG partners are in advanced discussions to finalise the processing agreement for Barossa gas to support a final investment decision,” he said.

Santos is also targeting a FEED-entry decision on the Dorado liquids project in the second quarter, Gallagher said.