600803:新奥股份:Santos2016年年报公告(原文)
Media enquiries
Rob Malinauskas
+61 8 8116 5918/ +61 (0) 438 862 132
robert.malinauskas@santos.com
Investor enquiries
Andrew Nairn
+61 8 8116 5314 / +61 (0) 437 166 497
andrew.nairn@santos.com
Santos Limited ABN 80 007 550 923
GPO Box 2455, Adelaide SA 5001
T +61 8 8116 5000 F +61 8 8116 5131
www.santos.com
ASX / Media Release
17 February 2017
Santos 2016 Full-year results
Significant progress on the Santos turnaround: Record production and sales volumes, free
cash flow breakeven US$36.50 per barrel and net debt reduced to US$3.5 billion.
Underlying profit US$63 million. Net loss of US$1,047 million including US$1.1 billion GLNG
after-tax impairment recorded at half-year.
Managing Director and Chief Executive Officer Kevin Gallagher said: “In 2016, the Santos leadership
team took tough and decisive action to stabilise the business and build the foundations for future
growth. We restructured the business, removed substantial costs, all while maintaining safety and
delivering record production and sales volumes.”
“As a result our turnaround strategy is starting to deliver. In 2016, Santos was free cash flow positive
at US$36.50 per barrel and generated US$370 million in free cash flow over the last eight months
of the year.(1) This is pleasing progress but there is still more to be done.”
Santos recorded a net loss of US$1,047 million, impacted significantly by the US$1.1 billion after tax
impairment charge on GLNG taken at the half-year results in August, and lower oil prices compared
to the prior year.
Excluding impairments and other significant items, the company recorded an underlying profit of
US$63 million.
Mr Gallagher said: “Our aim is to transform Santos into a low cost, reliable and high performance
business that delivers sustainable shareholder value.”
“At the heart of our strategy is portfolio simplification and focussed growth across five core, longlife natural gas assets: Cooper Basin, GLNG, PNG, Northern Australia, and Western Australia Gas.
Each asset has significant upside potential.”
“We will continue to focus on the exploration, development, production and sale of natural gas,
which has a significant role to play in securing Australia and Asia’s energy future.
“The raising of A$1.24 billion through the successful institutional placement and Share Purchase Plan
has strengthened our balance sheet and provides Santos with the financial flexibility to refinance
debt maturities and pursue growth opportunities aligned with our core business.”
“In 2017, we will further refine our operating model to drive costs down, improve cash flow and
reduce debt. We now have the strategy, assets, people and growth options to deliver on our future
success and provide sustainable shareholder value.” Mr Gallagher said.
Production and sales volume guidance remains unchanged at 55-60 mmboe and 73-80 mmboe
respectively.
(1) Free cash flow breakeven is the average annual oil price in 2016 at which cash flows from operating activities equals cash flows from investing activities.
Forecast methodology uses corporate assumptions. Excludes one-off restructuring and redundancy costs and asset divestitures.
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The company’s dividend framework provides for the setting of dividends as a payout ratio of
underlying earnings, subject to business conditions.
Consistent with the company’s immediate focus to strengthen the balance sheet and reduce net
debt, the Board has decided not to pay a final dividend. With the strong progress being made in
reducing costs and improving free cash flow, the Board is confident in the company’s ability to return
to paying dividends and will next review this position at the 2017 half-year results.
Results summary
Year ended 31 December 2016 2015 Change
Average realised oil price
Production volumes
Sales volumes
Revenue
EBITDAX(1)
Net impairment loss
EBIT(1)
Net profit/(loss) for the period
+ Impairment losses
+ Net gains on asset sales
+ Other
Underlying profit for the period(1)
US$/bbl
mmboe
mmboe
US$m
US$m
US$m
US$m
US$m
US$m
US$m
US$m
US$m
46.4
61.6
84.1
2,627
1,199
(1,561)
(1,204)
(1,047)
1,101
(17)
26
63
53.8
57.7
64.3
2,478
1,454
(2,854)
(2,381)
(1,953)
2,014
(1)
(11)
49
-14%
+7%
+31%
+6%
-18%
+29%
Operating cash flow
Capital expenditure(2)
Net debt
US$m
US$m
US$m
857
625
3,492
811
1,288
4,749
+6%
-51%
-26%
Final dividend per share Acents/share - 5 NA
(1) EBITDAX (earnings before interest, tax, depreciation, depletion, exploration, evaluation and impairment), EBIT (earnings before interest and tax) and underlying
profit are non-IFRS measures that are presented to provide an understanding of the performance of Santos’ operations. Underlying profit excludes the impacts of
asset acquisitions, disposals and impairments, as well as items that are subject to significant variability from one period to the next, including the effects of fair
value adjustments and fluctuations in exchange rates. The non-IFRS financial information is unaudited however the numbers have been extracted from the audited
financial statements.
(2) Excluding capitalised interest.
Santos achieved record production and sales volumes in 2016. Production was up 7% to a record
61.6 mmboe, primarily due to the start-up of GLNG train 1 in September 2015 and train 2 in May
2016, and strong production from PNG LNG. Sales volumes were up 31% to a record 84.1 mmboe,
driven by higher LNG (up 89%) and gas (up 26%) sales volumes.
Sales revenue increased by 6% to US$2.6 billion. The positive impact of higher sales volumes was
partially offset by lower oil and oil-linked LNG prices. The average realised oil price fell 14% to
US$46.43 per barrel while the average LNG price was 33% lower at US$6.03/mmbtu.
Notwithstanding the lower LNG prices, LNG sales revenue was up 27% due to the start-up of GLNG
and strong performance from PNG LNG.
Unit upstream production costs dropped by 18% to US$8.45 per boe, primarily due to cost savings
across the core assets. GLNG, PNG LNG and Cooper Basin unit production costs were 26%, 12%
and 15% lower respectively.
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Other operating costs, including LNG plant costs, increased due to higher pipeline capacity charges
reflecting increased volumes of Santos portfolio gas supplied to GLNG, recognition of an onerous
contract for pipeline capacity (US$29 million) and higher LNG plant costs due to the start-up of GLNG
trains 1 and 2.
EBITDAX fell by 18% to US$1.2 billion primarily due to lower oil and oil-linked LNG prices, and higher
other operating costs, partially offset by higher LNG sales volumes due to the start-up of GLNG and
lower unit production costs.
Revenue and EBITDAX(1) by asset
During 2016, Santos’ portfolio was simplified to focus on five core, long-life natural gas assets:
Cooper Basin, GLNG, PNG, Northern Australia and Western Australia Gas. Other assets have been
packaged and run separately for value as a standalone business.
Year ended 31 December 2016
Revenue
US$million
2015
Revenue
US$million Change
2016
EBITDAX
US$million
2015
EBITDAX
US$million Change
Cooper Basin 768 851 -10% 265 293 -10%
GLNG 540 123 +339% 183 31 +490%
PNG 444 566 -22% 350 443 -21%
Northern Australia 145 215 -33% 86 143 -40%
WA Gas 184 227 -19% 210 162 +30%
Other Assets 411 473 -13% 217 217 -
Corporate, exploration and
inter-segment eliminations 135 23 NA (112) 165 NA
Total 2,627 2,478 +6% 1,199 1,454 -18%
(1) EBITDAX (earnings before interest, tax, depreciation, depletion, exploration, evaluation and impairment) is a non-IFRS measure that is presented to provide an
understanding of the performance of Santos’ operations. The non-IFRS financial information is unaudited however the numbers have been extracted from the
audited financial statements.
Strengthening the balance sheet
Net debt reduced to US$3.5 billion as at 31 December 2016, down from US$4.7 billion at the start
of the year. The company’s gearing ratio was approximately 33% as at 31 December 2016, down
from 39% at the prior year end.
Net debt was reduced through a combination of asset sales, free cash flow generated by the business
and successful completion of the A$1,040 million institutional placement in December. The
placement was conducted to strengthen the company’s balance sheet and provide Santos with the
financial flexibility to take advantage of growth opportunities that are aligned with its core business
and strategic plan. A Share Purchase Plan Offer which closed on 31 January 2017 raised an additional
A$201 million.
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On 15 December 2016, S&P Global Ratings revised the outlook on Santos’ BBB- credit rating to stable
from negative.
Impairment of assets
As previously announced, the 2016 result includes an impairment charge for GLNG of
US$1,050 million after tax (US$1,500 million before tax) taken in the half-year results. No further
impairment of GLNG occurred in the second half. Additional net impairment charges of US$51 million
after tax (US$61 million before tax) were recorded against other assets in 2016.
2017 Guidance
Production and sales volume guidance for 2017 is maintained at 55-60 mmboe and 73-80 mmboe
respectively. All guidance is shown in the table below.
Item 2017 Guidance
Production 55-60 mmboe
Sales 73-80 mmboe
Upstream production costs (excluding LNG plant costs) US$8-8.50/boe produced
Depreciation, depletion & amortisation (DD&A) expense US$700-750 million
Capital expenditure (excluding capitalised interest) US$700-750 million
Annual General Meeting
The company’s Annual General Meeting will be held on Thursday 4 May 2017 at 10 am (ACST) at
the Adelaide Convention Centre.
Ends.
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