Santos (STO) H1 2024 earnings summary

Executive summary

• Delivered US$2.7 billion in sales revenue, US$1.1 billion free cash flow from operations, US$1.8 billion EBITDA/EBITDAX, and US$654 million underlying profit for H1 2024, with production of 44 mmboe.

• Declared a record interim dividend of US$422 million (US13 cents per share, unfranked), up 49% year-over-year, reflecting strong shareholder returns.

• Major projects progressing: Moomba CCS in final commissioning (first injection Q3 2024), Barossa 80% complete (first gas Q3 2025), Pikka Phase 1 nearly 60% complete (first oil H1 2026).

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

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

Financial highlights

• EBITDAX/EBITDA of US$1.8–1.85 billion and underlying profit of US$654 million for H1 2024.

• Interim dividend of US13.0 cents per share (US$422 million), 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$1.1 billion, down 5% year-over-year.

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.

• Free cash flow outlook could reach US$4–5 billion per annum as Barossa and Pikka come online.

• Papua LNG FID now targeted for end of 2025, with project optimizations ongoing.