Santos full-year profit falls 35% on weak oil and gas prices
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The news: Santos reported an underlying net profit of USD898 million ($1.2 billion) for the full year, as softer oil and gas prices more than offset a modest increase in production.
The numbers: The oil and gas giant’s profit missed average forecasts of USD948.7 million, according to Visible Alpha, and was down from USD1.2 billion a year prior.
Earnings before interest and tax came in at USD3.4 billion, above analysts’ estimates of USD1.5 billion, but below USD3.7 billion from the prior corresponding period.
Sales revenue declined to USD4.93 billion from USD5.38 billion year-on-year.
Free cashflow came totalled USD1.8 billion, while unit production costs were USD6.78 per barrel of oil equivalent.
The company declared a final dividend of 10.3 US cents per share, unchanged from a year prior.
The context: Despite the profit loss from a year earlier, CEO Kevin Gallagher said the full-year result reflected the strength of Santos’ business model, driven by a disciplined low-cost approach and cost saving objectives, including 10% reduction in headcount.
Santos maintained its FY26 production and capital spending guidance.
The source: ASX
