Santos books super profit as energy crunch boosts sales

Santos has tripled its full-year net profit to $US2.1 billion ($3.1 billion), as soaring international gas prices due to slashed supply from Russia deliver record earnings into the ASX-listed energy major’s coffers.

The $US2.1 billion net profit after tax was 221 per cent higher than that recorded in 2021, with production rising 12 per cent and sales revenue jumping 65 per cent to $US7.8 billion ($11.4 billion).

Santos boss Kevin Gallagher said stronger demand, higher prices and cost-cutting had helped the company deliver a solid result for shareholders.

“Today’s results demonstrate the strength of Santos, with strong diversified cashflows and capacity to provide sustainable shareholder returns, fund new developments and the transition to a lower carbon future,” he said.

The results cover the first full year since Santos acquired Oil Search, increasing its equity in the PNG LNG project that produced 43 per cent of 2022 revenue, 52 per cent of earnings before interest, tax and depreciation, and the highest margin across Santos’ portfolio.

Santos will pay an unfranked final dividend of $US0.151 (22 cents) a share bringing its total dividend from 2022 to $US0.227 (33 cents) a share.

The company’s board has withheld a portion of management bonuses, linked to environmental performance, until an independent investigation into an oil spill at Santo’s Varanus Island operation off the WA coast is completed.

Santos described the 25,000-litre spill in March 2022 as having a negligible impact on the environment when the incident was revealed by this masthead.

It was later disclosed that dead dolphins were found floating near the spill.