17 Feb Santos posts full-year loss after billion-dollar impairment charge
Energy company Santos (ASX:STO) has reported an annual loss of US$1.047 billion for 2016, after it was hit with a $1.1 billion impairment charge on the company’s 30% stake in the Gladstone LNG project.
Lower oil prices across global markets further exacerbated the firm’s financial performance, however production and sales volumes reached record numbers, with underlying profit standing at $63 million.
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.”
Santos aims to produce 55-60 million barrels of oil equivalent (mmboe) in 2017, while sales volume is expected to between 73-89 mmboe.
“In 2017, we will further refine our operating model to drive costs down, improve cash flow and reduce debt,” added Gallagher. “We now have the strategy, assets, people and growth options to deliver on our future success and provide sustainable shareholder value.”