Santos Limited (ASX:STO) Delivers Strong Performance in Q4 2024
Financial Highlights
Santos Limited (ASX:STO) reported significant financial success for the fourth quarter of 2024, achieving sales revenue exceeding US$1.4 billion, contributing to a total of US$5.4 billion for the full year. The company’s strong fourth quarter saw free cash flow of approximately US$430 million, culminating in a total annual free cash flow of US$1.9 billion. Additionally, the free cash flow breakeven price remained favourable, below $33.50 per barrel for the year unhedged.
Operating Achievements
Production figures for the quarter reached 21.5 million barrels of oil equivalent (mmboe), while annual production totalled 87.1 mmboe. Santos completed the sale of a 2.6 per cent interest in PNG LNG to Kumul Petroleum Holdings for a total cash consideration of US$602 million. Santos’ gearing stood around 20.8 per cent at year-end, showcasing robust financial management.
Project Developments
The Moomba Carbon Capture and Storage (CCS) project achieved operational status, injecting and storing nearly 340,000 tonnes of CO2e in the fourth quarter. Development projects such as Barossa Gas, nearing 90 per cent completion, and Pikka phase one, 74 per cent complete, are advancing towards timely completion. Long-term LNG Supply Agreements with Shizuoka Gas Co. Ltd and TotalEnergies further enhance Santos’ market presence.
Executive Comments
Kevin Gallagher, Managing Director and Chief Executive Officer, remarked on the strong performance: “The fourth quarter brought free cash flow for the full year to US$1.9 billion which positions the company well to deliver shareholder returns… Demand for LNG from our portfolio of world class LNG assets located close to Asian markets remains robust, which strategically positions Santos to supply lower cost, lower carbon LNG to the Asia Pacific region out to at least 2040.”
2025 Outlook
Santos anticipates production volumes of 90 to 97 mmboe for 2025, with capital expenditure estimates for major projects remaining steady. The company is committed to expanding its LNG production capacity, aligned with increasing demand and the successful commencement of Barossa in the third quarter of 2025.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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