Santos $519m Profit Down 31% FY2012

Australia's second largest oil and gas producer Santos (ASX:STO) has announced its full year financial results for 2012 to its shareholders and investors on the Australian stock market.

• Santos posted an annual profit result of $519 million, down 31 percent.
• Santos underlying profit up 34 percent to $606 million.
• STO Annual revenue from ordinary activities up 18 percent to $3.299 billion.
• Santos' US$18.5 billion Gladstone coal seam gas to LNG (GLNG) project in Queensland, which is almost half completed and on track to start producing LNG in 2015. The Exxon Mobil-led US$19 billion Papua New Guinea LNG project was on schedule to start production in 2014.
• Santos expects to pay $45 to $65 million towards the Australian federal government's carbon tax for the 12 months from July 1, 2012. But the company expects to recoup these carbon costs from domestic sales agreements and an allocation of free carbon permits to be issued under the jobs and competitiveness program of the legislation for LNG operations.
• Santos chief executive David Knox said, "We expect a further lift in production in 2013."
• Santos maintains its 2013 production guidance at between 53 to 57 million barrels of oil equivalent (mmboe). The company is on track to produce 80-90 mmboe by the end of the decade when its "mega" LNG projects are online.
• Santos has declared a final dividend of 15 cents per share fully-franked. Total dividends distributed by the company for the year was 30 cents per share.