Top 100 CEO Interviews
Issue No. 25 - October/November 2005
Top 100 Resourceful giant’s billion dollar boom
Oil and gas giant Santos Limited has every reason to be satisfied with how things are going. The company delivers a succinct and understated assessment of an extremely strong position.
“Over the past 12 months Santos has experienced a period of strong growth. This has been achieved from increased production output; a higher proportion of liquids (crude oil and condensate) in our product mix plus increased prices for all our products.
“Production has increased from 47 million barrels of oil equivalent (mmboe) in 2004 to an expected 55 mmboe in 2005.
“This has come from the start-up of new projects such as the Bayu-Undan liquids project, offshore Darwin, the Mutineer-Exeter oil development, offshore WA and the Minerva gas project, offshore Victoria coupled with growing oil production in the Cooper Basin in central Australia.”
Santos expects production to grow by at least 10% in 2006 as more new projects start production.
Some of them are the Bayu-Undan LNG project, offshore Darwin; the Casino gas project, offshore Victoria; the John Brookes gas development, offshore WA; the Oyong oil and gas development and the Maleo gas development in Indonesia.
Santos’ financial year ended on 31 December 2004. In the company’s half year results for the six months to 30 June 2005, it announced that sales revenue for the half year was up by over 70%, topping the $1 billion mark for the first time.
“Net profit after tax was a record $290 million for the first half year - more than 240% above the corresponding period in 2004,” Santos reported.
“Recurring profits are up 48%.
“Operating cash flow increased by more than 190% to a record $565 million for the half year.
“This bodes well for Santos’ ability to invest in growth projects, whilst continuing to reward shareholders via dividend payments.”
Santos is also pleased with its exploration success over the last year.
“S...
