Santos has announced its full-year results for 2019, reporting both record EBITDAX and free cash flow.

The Board has resolved to pay a final dividend of US5.0 cents per share fully-franked, bringing full-year dividends to US11.0 cents per share fully-franked, up 13% on the previous year. The final dividend is in-line with Santos’ sustainable dividend policy which targets a range of 10% to 30% payout of free cash flow.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said:
“Today’s announcement of full-year results demonstrates the strength of our cash-generative operating model.”

“Santos has delivered strong financial results with EBITDAX up 14% to a record US$2.5 billion and free cash flow(1) up 13% to over US$1.1 billion. Reported net profit after tax increased by 7% to US$674 million.

“Consistent application of our disciplined operating model continues to deliver cost reductions and efficiencies, with normalised production costs(1) down 8% to US$6.97/boe.

“The year was highlighted by record onshore drilling performance, lower unit costs, successful integration of the Quadrant acquisition and significant progress on our diversified portfolio of growth projects.

“The acquisition of ConocoPhillips assets in northern Australia and Timor-Leste announced in October is fully-aligned with our growth strategy to build on existing infrastructure positions and delivers operatorship and control of strategic LNG infrastructure at Darwin.

“The acquisition is expected to complete around the end of the first quarter of 2020, subject to third-party consents and regulatory approvals.

“Following completion of the ConocoPhillips’ acquisition, we expect to take a final investment decision on the Barossa project to backfill Darwin LNG in the second quarter.

“Barossa is making good progress towards FID, with technical assurance processes well advanced and key contracts for the FPSO, subsea production system and export pipeline all awarded. The Barossa and DLNG partners are in advanced discussions to finalise the processing agreement for Barossa gas to support a final investment decision.

“We are also targeting a FEED-entry decision on the exciting Dorado liquids project in the second quarter.

“In the Cooper Basin, our focus on low-cost, efficient operations contributed to stronger annual production and 183% reserves replacement. We have also taken a FEED-entry decision for the Moomba carbon capture and storage project.

“At GLNG, our disciplined operating model continues to support a development plan to unlock more gas over time and we recently lifted guidance to ~6.2 mtpa LNG sales from this year.

“All of this growth activity is consistent with reaching our goal of more than 120 million barrels of oil equivalent production by 2025.

“This growth is enabled by our strong balance sheet and balanced asset portfolio, which provides sustainable free cash flow through the oil price cycle,” Mr Gallagher said.

Final dividend

The Board has resolved to pay a 2019 final dividend of US5.0 cents per share fully-franked, in line with the company’s sustainable dividend policy which targets a range of 10% to 30% payout of free cash flow.

The final dividend will be paid on 26 March 2020 to registered shareholders as at the record date of 26 February 2020.

Santos dividends are determined and declared in US dollars and paid to shareholders in Australian dollars. Currency conversion for the interim dividend will be based on the exchange rate on the record date of 26 February 2020. The Dividend Reinvestment Plan will not be offered for the 2019 final dividend.

Link to Santos Australia country profile