Santos (STO) H1 2025 earnings summary

Executive summary

• Delivered strong financial and operational performance in H1 2025, with major projects Barossa LNG and Pikka Phase 1 progressing ahead of schedule and robust safety improvements, including a 46% year-over-year reduction in Total Recordable Injury Rate.

• Revenue for H1 2025 was $2.6 billion, down 5% year-over-year due to lower realised prices, but free cash flow from operations remained strong at $1.1 billion.

• Net profit after tax was $439 million, with underlying profit of $508 million, both lower year-over-year due to reduced prices, higher restoration and financing costs, and one-off impairments.

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

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

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 declared: 13.4 US cents per share, partially franked, totaling $435 million.

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

• One-off $119 million impairment on P&G business and Hides footwall in PNG.

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.

• Barossa LNG and Pikka Phase 1 on schedule, with Barossa startup imminent and Pikka first oil brought forward to Q1 2026.

• Targeting $150 million in annual structural savings over the next 18 months.

• CapEx guidance for 2026 to be provided at year-end.