Santos Announces 2023 Full Year Results

Source: 2/21/2024, Location: Not categorized

Santos today announced its full-year results for 2023, reporting sales revenue of US$5.889 billion, EBITDAX of US$4.083 billion, underlying profit of US$1.423 billion and free cash flow of US$2.128 billion. These results reflect lower oil and LNG prices, and lower production compared to the corresponding period.

Santos continues to execute its strategy to deliver long-term value for shareholders through backfilling and sustaining our production, decarbonising operations and developing low-carbon fuels as customer demand evolves.

Managing Director and Chief Executive Officer Kevin Gallagher said Santos has delivered record cash returns as a result of its high-performance culture, disciplined low-cost operating model and strong focus on safety.

“Today’s results demonstrate the capability of Santos to generate strong cash flow, develop major projects and deliver sustainable shareholder returns,” Mr Gallagher said.

The Barossa Gas Project is now 67 per cent complete with first gas expected in the third quarter of 2025. The pipeline that will deliver gas from the field to Darwin LNG is now 68 per cent complete and more than 50 per cent of the pipe has been laid. The first Barossa well has been completed and the second well is under way. Initial well flow rates are in line with expectations and carbon dioxide content is at the low end of the expected range. At full production rates, Barossa is expected to add 1.8 Mtpa to Santos’ expanding LNG portfolio.

Phase one of the Pikka Project is now over 40 per cent complete with first oil expected in the first half of 2026. The drilling program is progressing with the sixth well spudded in December. Two well flow backs have been completed and results are in line with prognosis. Construction of associated infrastructure is also progressing well. Pikka is a low carbon-intensity project that will be net-zero scope one and two emissions from first production.

Phase one of the Moomba Carbon Capture and Storage (CCS) project remains on track for first injection mid-2024. Moomba CCS phase one will be one of the lowest-cost CCS projects in the world and will have capacity to store up to 1.7 million tonnes of carbon dioxide per year. This is equivalent to around 28 per cent of the total annual emissions reduction from Australia’s electricity sector[2] making Moomba CCS very significant in Australia’s journey to net-zero emissions.

“Our critical fuels are a necessary component in the energy security of Australia and Asia, and will be required to provide affordable and reliable energy whilst the world transitions to lower-carbon alternatives,” Mr Gallagher said.

Demand for our products remains strong. We are expanding our LNG portfolio by delivering on Barossa with first gas expected in the third quarter next year. We are also progressing Papua LNG towards a final investment decision. First oil from Pikka is expected in the first half of 2026. These projects will transform Santos and provide long-term value for shareholders.

Santos today has also released its 2023 Sustainability and Climate Report, providing an update on the Company’s progress towards achieving our target of net-zero scope one and two emissions (equity share) by 2040.

“The 2023 Sustainability and Climate Report is the most detailed and comprehensive view of our energy transition activities in the Company’s history and provides shareholders with a clear picture of the work we are undertaking to achieve our net-zero emissions target by 2040,” Mr Gallagher said.

Guidance for 2024 remains unchanged.

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