Santos Limited (ASX:STO) Reports Strong 2024 Financial Results
Financial Performance
Santos Limited reported a net profit after tax of US$1.2 billion for the full year 2024, alongside sales revenue of US$5.4 billion. The company achieved an EBITDAX of US$3.7 billion and generated a strong free cash flow from operations of US$1.9 billion. Gearing stood at 23.9% with liquidity of US$4.4 billion.
Dividend Declaration
The Board resolved to pay a final dividend of 10.3 cents per share unfranked, amounting to US$335 million. Combined with the interim dividend, this results in a total cash return to shareholders of US$757 million for 2024, representing 40% of free cash flow from operations in line with the company’s dividend policy.
Operational Highlights
Santos produced 87.1 mmboe and achieved sales volumes of 91.7 mmboe in 2024. The Barossa LNG project is 91% complete and on track for first gas in Q3 2025, while the Pikka phase one project in Alaska remains on schedule for first oil in mid-2026. The company reported its best personal safety performance in ten years, with significant improvements in injury rates and loss of containment incidents.
Sustainability and Climate
Santos released its 2024 Sustainability and Climate Report, highlighting a 26% reduction in Scope 1 and 2 emissions compared to the baseline year of 2019-20. This reflects 84% progress towards the 2030 emissions reduction target of 30% Scope 1 and 2 emissions. The successful startup of Moomba CCS phase one significantly contributed to these reductions, capturing and storing approximately 340,000 tonnes of CO2e.
Executive Comments
Santos Managing Director and Chief Executive Officer Kevin Gallagher said, “A highlight of the year was the successful startup of Moomba CCS phase one in September, which had an immediate and ongoing impact on the company’s emissions. Net equity Scope 1 and 2 emissions for 2024 reduced by 26 per cent and fourth quarter emissions intensity reduced by 18 per cent compared to our baseline year of 2019-20. Importantly, Moomba CCS phase one gives us confidence in the potential to build a commercial carbon management services business as customer demand for CCS grows in Australia and in Asia. Another strong cash flow year from the long-life gas assets in our base business has enabled the company to deliver returns to shareholders and invest in our Barossa and Pikka development projects that will bring new production online this year and next.”
Motley Fool contributor Aaron Shaw 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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