- One of Australia’s largest oil and gas companies, Santos (STO), has more than tripled its full year profit driven by renewed increase in demand for oil and gas
- Net profit for the year surged to US$658 million (A$920 million), a big rebound from a loss in 2020, with underlying profit jumping 230 per cent to US$946 million (A$1.3 billion)
- The board has declared a final dividend of US8.5 cents (A12 cents) per share, a 70 per cent increase from the prior year
- Santos is expecting its 2022 production to increase to a range of 100 million to 100 million barrels of oil equivalent on the back of the Oil Search merger
- STO shares down 2.64 per cent to $7.21
Santos (STO) has more than tripled its full-year profit as the oil and gas industry rebounds.
The company’s net profit for the 2021 calendar year came in at US$658 million (A$920 million), a US$1 billion turnaround from a net loss in 2020, with underlying profit soaring 230 per cent to US$946 million (A$1.3 billion).
The oil and gas industry has been seeing renewed rise in demand as countries re-emerge from COVID-19 lockdowns sooner than expected.
Santos declared a final dividend of US8.5 cents (A12 cents) per share, a 70 per cent increase from the prior year.
The company’s free cash flow more than doubled in 2021 to US$1.5 billion (A$2.1 billion).
Managing Director and CEO Kevin Gallagher noted the company’s latest financial results only included three weeks of the expanded group earnings stemming from the Oil Search merger.
If the merged company had been in place for the full year, free cash flow generated would have topped US$2.3 billion (A$3.2 billion), he pointed out.
“The highlight of the year was the completion of our merger with Oil Search. The merger
delivers increased scale and capacity to drive our disciplined, low-cost operating model and unrivalled growth opportunities over the next decade – all with a vision of becoming a global leader in the energy transition,” Mr Gallagher said.
“2021 brought global energy security into the spotlight with higher prices and a supply crunch in the wake of rapidly recovering demand and a lack of investment in new supply.”
Santos’ production guidance for 2022 envisages a range of about 100 million to 100 million barrels of oil equivalent, mainly due to the higher production from Papua New Guinea following the Oil Search merger.
STO shares were down 2.64 per cent to $7.21 at 1:44 pm AEDT.