Santos (STO) H1 2025 earnings summary

Executive summary

• Delivered strong financial and operational performance in H1 2025, with $2.6 billion revenue, robust safety improvements, and major project milestones for Barossa LNG and Pikka Phase 1, both over 91% complete and on track for early production.

• Maintained disciplined, low-cost operating model, driving efficiency, reliability, and strong cash generation, with positive free cash flow and improved emissions intensity by 22% since Moomba CCS startup.

• Safety performance improved, with LTIR outperforming global averages and a 46% year-over-year improvement in TRIR.

• Progressed towards a binding Scheme Implementation Agreement with the XRG Consortium, extending exclusivity to September 19, 2025, with customary shareholder protections.

• Net profit attributable to equity holders was $439 million, a 31% decrease year-over-year, mainly due to lower product sales and higher impairment charges.

Financial highlights

• Sales revenue reached $2.6 billion, EBITDAX $1.8 billion, and profit after tax $439 million for H1 2025.

• Free cash flow from operations was $1.1 billion; positive all-in free cash flow of $258 million after growth investments.

• Interim dividend of $0.134 per share declared, totaling $435 million, partially franked, representing 40% of free cash flow from operations.

• Underlying profit was $508 million, lower year-over-year due to reduced prices and volumes, higher restoration and financing costs, offset by lower tax.

• Net cash from operating activities increased 8% to $1,552 million.

Outlook and guidance

• 2025 production guidance: 90–95 mmboe; sales volumes: 92–99 mmboe.

• Unit production cost guidance narrowed to $7.00–$7.40/BOE; targeting below $7.00/BOE as Barossa and Pikka come online.

• Unhedged operating free cash flow breakeven targeted under $35/bbl in 2025.

• Gearing expected to temporarily rise as Barossa and Pikka complete, then decline as new revenues materialize.

• CapEx guidance for 2026 to be provided at year-end; targeting $150 million in annual structural savings over the next 18 months.