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Santos Announces Loss for 2015

Santos Announces Loss for 2015
Feb 19, 2016 By Ben Khouri Tags: STO

Oil miner Santos (ASX:STO) has released their results for the full year 2015. The results were disappointing, with the oil miner announcing a loss for 2015.

$2.7 billion Loss

Santos has announced a $2.7billion loss for the full year 2015. With revenue down 20% to the PCP, to $3.2billion. Operating cash-flow had contracted 41%, to $1.1billion.

Santos attributes this loss to the almost 50% dampening in the oil price, along with significant asset impairment charges of $2.8billion after tax. The impairment charges predominately relate to their Cooper Basin gas producing assets, GLNG assets, along with their Gunnedah Basin assets. 

On an Underlying basis, Santos had achieved a $50million profit. However, the oil miners underlying profit felt the repercussions of the falling oil price in 2015, contracting 91% to the PCP.

Santos produced 57.7mmboe of crude oil over the course of 2015. This is a 6.7% expansion in production to the PCP. The oil miners has maintained their 2016 production guidance, leaving it unchanged, between 57-63mmboe.
Unit production costs were $14.40 a barrel, 10% lower to the PCP.

Transition to New Managing Director and CEO

Kevin Gallagher commenced work as the new company CEO and Managing Director on the 1st of February 2016.

Mr Gallagher remained determined to his newly appointed role: “My priority now is to assess our operations and put in place the right strategy to ensure that Santos is sustainable in a low oil price environment, while positioning the company to take full advantage of rising commodity prices in the future.”

Dividend

The board has declared a 2016 interim fully franked dividend of $0.05cents per share. This is a $0.10 cent decline to the dividend paid out in September 2015 ($0.15 cents per share).

The Ex-dividend and Payment date are on the 24th February and the 30th March 2016 respectively.

Capex Guidance Reduced

As at the end of 2015, Santos’ net debt was $6.5billion. Composed of $7.7billion in gross debt and derivatives less cash of $1.2billion. With their cash balance 49% higher, to $1.1billion. 

Furthermore, the oil miner’s 2016 capex guidance has been lowered to $1.1billion.

STO Down 6.6%

As at 12.17pm (AEDT), STO has contracted 6.6%, to $3.30. Over the last year, investors have been less confident in the prosperity of the oil miner, in the face of the ongoing decline of oil prices, losing over 50% of its value.

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Ben Khouri Author: Ben Khouri Feb 19, 2016

Ben Khouri is a financial editor for Wise-Owl with a particular focus on the top ASX 300 companies. Having a vast background in economics and finance, Ben provides financial commentary & analysis as well as global market updates, which guide investors in devising investment strategies. Ben specialises in analysing economic data and global events from around the world and examines the impacts they have on the major equity markets.

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