Santos today announced its full-year results for 2024, reporting annual production of 87.1 mmboe and sales volumes of 91.7 mmboe. Free cash flow from operations was US$1,891 million and underlying profit was US$1,201 million. Santos delivered its best personal safety performance in 10-years.

The Board resolved today to pay a final dividend of US 10.3 cents per share, unfranked. This brings full-year dividends to US 23.3 cents per share unfranked, representing 40 per cent of free cash flow from operations in line with the company’s dividend policy.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the company’s strong free cash flow from operations reflects the cash generative nature of the base business.

“A highlight of the year was the successful startup of Moomba CCS phase one in September, which had an immediate and ongoing impact on the company’s emissions. Net equity Scope 1 and 2 emissions for 2024 reduced by 26 per cent and fourth quarter emissions intensity reduced by 18 per cent compared to our baseline year of 2019-20.

“Importantly, Moomba CCS phase one gives us confidence in the potential to build a commercial carbon management services business as customer demand for CCS grows in Australia and in Asia.

“Another strong cash flow year from the long-life gas assets in our base business has enabled the company to deliver returns to shareholders and invest in our Barossa and Pikka development projects that will bring new production online this year and next.

“The Barossa LNG project is 91 per cent complete and remains on track for first gas in the third quarter this year. Final welds on the Darwin Pipeline Duplication are underway today and when complete will connect the Barossa field to the Darwin LNG plant. Three wells are drilled and completed. The fourth well is partially drilled and suspended for later completion. Production from these four wells can deliver nameplate capacity, materially derisking the project. Other work packages are progressing well and remain on track to support the first gas date.

“We continue to see strong progress at our Pikka phase one project in Alaska. The remainder of the pipeline is expected to be installed in this winter season, a year ahead of schedule. Sixteen of 26 wells are now drilled and completed, and we have significantly improved drilling performance with a 25% improvement in drill time over the last few months, down to 30 days per well. First oil remains on track for mid-2026 with an early start-up possible but subject to weather and logistics.

“Our low-cost disciplined operating model underpins our business and is more important than ever in a volatile external market. As part of our continuing focus on productivity and efficiency, we are targeting US$100 to US$150 million in annual structural savings over the next one to two years, driving long-term value for shareholders.”

“Our 2P reserves and 2C resources position of 4,897 mmboe provides 1P reserves life of 11 years, 2P reserves life of 18 years and multi-tcf resources to backfill and sustainably grow our production to meet strong ongoing customer demand for our products. We will continue to develop and replace our reserves and resources in accordance with our capital allocation framework to drive long-term shareholder value.

“Our LNG marketing business performed strongly across the year. Long-term LNG Supply and Purchase Agreements were signed with Hokkaido Gas and Shizuoka Gas Co, and mid-term agreements were signed with TotalEnergies and Glencore. These agreements with tier one customers strengthen Santos’ equity LNG portfolio which is around 90 per cent contracted over the next five years with strong pricing driven by the high heating value of our LNG, reliability, and our proximity to growing markets in Asia.”

Today, Santos released its 2024 Sustainability and Climate Report as part of the integrated suite of reporting. In 2024, Santos’ Scope 1 and 2 equity emissions were 26 per cent lower than the baseline year of 2019-20. This reduction represents 84 per cent progress to our 2030 emissions reduction target of 30 per cent Scope 1 and 2 emissions.

“The 2024 Sustainability and Climate Report provides a comprehensive view of our energy transition activities, including progress towards achieving our emissions reduction targets,” Mr Gallagher said.

Source: Santos