Santos Reports Loss for Year 2015

Santos on Friday announced a 2015 net loss of $2.7 billion, impacted significantly by impairments of $2.8 billion after tax.

The impairment charges are primarily a reflection of the current oil price environment and relate predominantly to the company’s Cooper Basin gas producing assets, GLNG assets and Gunnedah Basin assets, Santos said.

Underlying net profit after tax was $50 million, 91 percent lower than the previous year.

Chairman Peter Coates said Santos’ 2015 financial performance reflected the impact of lower global oil prices that had been experienced across the oil and gas industry.

“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,” Coates said. “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.”

Production guidance for 2016 is maintained at 57 to 63 mmboe, while capital expenditure guidance has been cut to $1.1 billion.

GLNG's train 1 production is regularly exceeding 110% of nameplate capacity and 16 cargoes have been shipped to date, Santos stated.