Santos (STO) H1 2024 earnings summary

Executive summary

• Delivered strong free cash flow from operations of US$1.1 billion, down 5% year-over-year, with robust project delivery and a record interim dividend of US$422 million, up 49% to US13 cents per share unfranked.

• Sales revenue reached US$2.7 billion, down 9% year-over-year, with stable production of 44 million barrels of oil equivalent, down 2%.

• Major projects progressing: Moomba CCS in final commissioning, Barossa 80% complete (first gas Q3 2025), and Pikka Phase 1 nearly 60% complete (first oil H1 2026).

• 2024 guidance for production, sales volumes, and capex remains unchanged.

• Improved safety performance and operational reliability, especially in PNG and Queensland.

Financial highlights

• EBITDAX reached US$1.85 billion for the half-year; underlying profit was US$654 million, down 18% year-over-year.

• Interim dividend of US13.0 cents per share (unfranked), a 49% increase year-over-year.

• Gearing at 19.9% (excluding leases), with total liquidity of US$4.0 billion and net debt of US$4.8 billion.

• Unit production costs at US$7.94/boe, up 4% year-over-year, mainly due to increased maintenance and electricity costs.

• Free cash flow from operations totaled US$1.068 billion, down from US$1.129 billion in 1H 2023.

Outlook and guidance

• 2024 production guidance: 84–90 mmboe; sales volumes: 87–93 mmboe.

• Sustaining capex guidance at ~US$1.25 billion; major project capex at ~US$1.6 billion.

• Unit production cost guidance: US$7.45–7.95/boe.

• Guidance for 2024 remains unchanged despite inflationary pressures.

• Barossa Gas Project expected to deliver first gas in Q3 2025; Pikka Project phase one targeting first oil in H1 2026.