Santos (STO) H2 2025 earnings summary

Executive summary

• Delivered strong financial and operational performance in 2025 despite lower commodity prices and inflationary pressures, with disciplined cost management and record safety metrics.

• Achieved best process safety performance in a decade and record-low lost time and total recordable injury rates.

• Advanced and delivered major projects including Barossa, Moomba CCS, and Darwin LNG; Pikka Phase I nearing startup, expected to lift production by ~25% by 2025.

• Achieved 2030 emissions reduction target five years early, driven by Moomba CCS phase 1.

• Strategic priorities for 2026 include ramping up Barossa, progressing Papua LNG, and advancing CCS initiatives.

Financial highlights

• Free cash flow from operations: $1.8 billion; underlying profit after tax: $898 million; EBITDAX: $3.4 billion.

• Total dividends for 2025: $0.237 per share (43% of free cash flow), with a final dividend of $0.103 per share; dividends per share CAGR over 13% since 2018.

• Product sales revenue: $4.939 billion, down from $5.381 billion in 2024 due to lower realised prices.

• Unit production costs dropped to $6.78/boe, the lowest in a decade.

• Gross profit margin: 33.7%; $50 million in cost savings delivered, targeting $150 million annual run rate.

Outlook and guidance

• 2026 production and sales volumes guided at 101–111 mmboe; capital expenditure expected at $1.95–$2.15 billion.

• Unit production costs for 2026 guided at $6.95–$7.45/boe.

• Pikka phase 1 on track for first oil late Q1 2026, ramping to full rate by end of Q2.

• Strategic focus on steady state production from Barossa, ramp-up of Pikka phase 1, and progressing key appraisal and backfill projects.

• Ambition to maintain production between 100–120 million BOE in the near term, with clear growth pathways.