Santos (STO) H2 2025 earnings summary

Executive summary

• Delivered strong financial and operational performance in 2025 despite lower commodity prices and inflationary pressures, with resilient base business and disciplined cost management.

• Achieved top-quartile safety performance globally, with record-low lost time and total recordable injury rates, and high reliability.

• Advanced major projects including Barossa, Moomba CCS, and Pikka Phase I, supporting long-term growth and expected to lift production by ~25% by 2025.

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

Financial highlights

• Free cash flow from operations: $1.8–$2.4 billion; underlying profit after tax: ~$900 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.

• Product sales revenue was $4,939 million, down from $5,381 million in 2024 due to lower realised prices.

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

• Gearing finished at 26.9% (including leases); liquidity at $4.3 billion.

Outlook and guidance

• 2026 production and sales volumes guided at 101–111 mmboe; ambition to maintain production between 100–120 million BOE in the near term.

• Capital expenditure expected at $1.95–$2.15 billion; unit production costs forecast at $6.95–$7.45/boe.

• Targeting all-in free cash flow breakeven of $45–$50 per barrel; unit production cost target below $7/BOE.

• Strategic review of Australian integrated assets underway, with results to be shared at Investor Day.