Chief executive David Knox said the company had performed well in the first half, despite the profit slide, and the outlook was good for the rest of the year. "The first half of 2014 saw Santos achieve its highest oil production in six years, record sales revenue and strong operating cash flow," he said. "We have set the foundation for a stronger second half.
Santos still expects full-year production to come in between 52 and 57 mmboe, while capital expenditure is still seen at $3. 5 billion for the year. Santos owns 13. 5 per cent of PNG LNG, while US-based oil and gas giant operator Exxon Mobil owns 33 per cent and Oil Search owns 29 per cent.
Oil and gas exploration and production company Santos has reaffirmed all of its full-year guidance after posting a slight lift in underlying profit, despite a $67 million impairment related to its Indonesian operations taking a bite out of its net profit.
Investors looked past the impairment and instead zeroed in on the upbeat commentary and increased dividend. At 4. 05pm (AEST) Santos shares were 3. 98 per cent higher at $15. 17, against a benchmark index lift of 0. 15 per cent.
Underlying profit in the period, which strips out the impairment, was $258m, a 3 per cent increase on the previous year and ahead of consensus expectations from analysts surveyed by Bloomberg at $226m.
Read more here: Business Spectator