Energy producer Santos is still making losses but also significant progress restructuring its oil and gas business.
It posted an underlying full-year profit $US63 million and a net loss of $US1.047 billion, including $US1.1 billion after-tax impairment on its GLNG gas project in Queensland.
The company decided not to pay a final dividend, but will revisit this later in the year.
In a statement to the ASX, the company said: “With the strong progress being made in reducing costs and improving free cash flow, the board is confident in the company’s ability to return to paying dividends and will next review this position at the 2017 half-year results.”
Santos had record production and sales volumes for the 12 months to December. Production was up 7% to a record 61.6 mmboe (million barrels of oil equivalent), primarily due to the start-up of GLNG. Sales revenue increased by 6% to $US2.6 billion.
“In 2016, the Santos leadership team took tough and decisive action to stabilise the business and build the foundations for future growth,” says CEO Kevin Gallagher.
“We restructured the business, removed substantial costs, all while maintaining safety and delivering record production and sales volumes.”
He says the aim is to transform Santos into a low cost, reliable and high performance business.
Here are the full year results in detail: