Santos Limited · ASX:STO
Santos — FY2008 Earnings Presentation
21 slides from Santos's earnings presentation, Feb 19, 2009
Slide 1: 2008 Full Year Results
For personal use only 2008 Full Year Results 19 February 2009 1 Results Highlights & Strategy David Knox CEO & Managing Director 2 1
Slide 2: Strong operating performance
Strong operating performance For personal use only 2008 Full Year Result Change on 2007 Production 54.4 mmboe (8%) Sales Revenue $2.8 billion 11% EBITDAX $3.7 billion 99% Net Profit After Tax $1.7 billion 359% Underlying Net Profit $572 million 42% Operating Cash Flow $1.5 billion 21% Total Dividend
Slide 3: Strategy delivery in 2008
Strategy delivery in 2008 For personal use only Base Business – Australia & Indonesia Target Delivery Production 54 – 56 mmboe 3 54.4 mmboe in line with guidance Progress next phase of projects to schedule 3 Kipper – on track for first gas 1H11 3 Oyong Phase 2 – on track for first gas 3Q09 Reindeer
Slide 4: Strategy delivery in 2008: Focussed Growth in Asia
Strategy delivery in 2008 For personal use only Focussed Growth in Asia Target Delivery Vietnam: Chim Sao 3 Successful test of Chim Sao North appraisal well Deferral of first oil into 2011 Bay of Bengal: progress exploration program 3 2D seismic survey complete 3 3D seismic survey underway 7 Track r
Slide 5: Net profit after tax
For personal use only 2008 Full Year Results Peter Wasow Executive Vice President & CFO 9 Net profit after tax 2007 2008 2007 Significant Underlying Operating Underlying Significant 2008 Reported Items Profit Items Profit Items Reported $m 359 45 404 168 572 1,078 1,650 1,650 1,500 1,350 1,200 1,050
Slide 6: Underlying Profit
Underlying Profit For personal use only 2007 Exploration Interest 2008 Underlying Price Volume Prod costs DD&A Expense & FX Underlying $m 404 232 (101) (43) 12 28 40 572 650 575 500 425 350 275 200 2007 2008 11 Significant items 2008 2008 $m Pre tax Post tax Gain on PETRONAS sell down 1,698 1,188 Im
Slide 7: 2009 guidance
2009 guidance For personal use only Item 2009 Guidance 2008 Actual Production 53 – 56 mmboe 54.4 mmboe Production costs $550 - $570 $543 million million Depreciation, Depletion & $12.80 per boe $12.20 per boe Amortisation (DD&A) expense Royalty related taxation expense1 $80 to $100 $115 million (aft
Slide 8: Long debt profile with high flexibility
Long debt profile with high flexibility For personal use only Debt Maturity Profile Less than 15% of gross debt 600 matures in next two years Average term to maturity 6.6 years 500 Greater than 25% matures beyond ten years 400 All A$ debt and 87% of US$ A$ millions 300 debt is floating rate 20
Slide 9: GLNG: The leading CSG to LNG project
For personal use only Looking Forward David Knox CEO & Managing Director 17 GLNG: The leading CSG to LNG project Environmental applications commenced Freehold land acquired for Pre-FEED by Foster liquefaction facilities Wheeler and Bechtel Significant project PETRONAS selected Environmental Impact s
Slide 10: GLNG: Building the team and the reserves
GLNG: Building the team For personal use only Growth in GLNG team to 220 employees Senior secondees from PETRONAS into GLNG including: - Project Director Downstream - GM LNG Operations - GM Marketing Plans for an additional 120 new employees in 2009 Organisation in place to deliver New Bri
Slide 11: PNG LNG on track
PNG LNG on track For personal use only Steady progress toward final investment decision… Pre FEED work on two train 6.3 mtpa plant 9 Hides & Angore Marketing Representative Juha Agreement 9 Kutubu & Agogo Gobe Coordinated Development and Operating Agreement 9 Gas Agreement 9 FEED Entry Dec
Slide 12: 2009 Forward Exploration Schedule
For personal use only Reference Slides 23 2009 Forward Exploration Schedule Well Name Basin / Area Target Upside Resource Potential Santos Timing Comments (mmboe) Interest 50 - 100 - 0 – 50 % 100 500 Gulf of Suez / Drilling with South East July 1 Oil 9 40 Q1 09 Egypt full carry East Java / Peluang 1
Slide 13: Australia and LNG Milestones
Australia - Milestones For personal use only Project 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FEED FID Startup Fairview CSG 115 TJ/Day Henry Discovered FEED FID Startup (VIC/P44 July 2005 Stage 2) Discovered FID Startup Kipper 1986 Patricia- FEED Startup Pre-FEED FID Baleen Plant Upgra
Slide 14: Asia Milestones and Production
Asia - Milestones For personal use only Project 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Discovered FEED FID Startup 2001 Oyong Ph2 FEED FID Startup Wortel Country Pre-FEED FID Startup Chim Sao Entry 2006 Dua Magnama, Hatia Wells 3D Seismic Country Bangladesh Entry 2007 2D Seismic 3D S
Slide 15: DD&A and EBITDAX
DD&A For personal use only Lower Volume New Field Fields $m 2007 Fields Performance Events* Sold Other 2008 759 10 (39) (64) (1) (1) 664 770 750 730 *Events: 710 Mutineer Exeter (44) 690 Stag (6) Moonie-Brisbane pipeline (13) 670 John Brookes (1) TOTAL (64) 650 2007 2008 29 EBITDAX 2007 GLNG Product
Slide 16: Finance charges and impairment write-downs
Finance charges For personal use only 2008 2007 Change% Interest expense 132 129 Less borrowing costs capitalised (10) (6) 122 123 − Unwind of the effect of discounting on provisions 31 24 Other − 5 Financial expenses 153 152 − Less interest income (63) (14) Net financing costs 90 138 -35 31 2008 Im
Slide 17: EBITDAX and underlying profit reconciliation
EBITDAX For personal use only $m 2008 2007 Net profit after tax 1,650 359 Total tax expense 883 359 Net financing costs 90 138 Impairment write-downs 217 − Exploration expense 179 235 DD&A 664 759 EBITDAX 3,683 1,851 33 Underlying profit $m 2008 2007 Net profit after tax 1,650 359 Net gain sale GLNG
Slide 18: 2009 Sensitivities and Prices & Exchange Rates
2009 Sensitivities For personal use only NPAT Impact Sensitivity Change A$m US dollar oil price US$1/bbl 13 Gas Price 10 cent/GJ 14 A$/US$ exchange rate 1 cent 9 Interest rates 1% 8 35 Prices & Exchange Rates 2008 2007 Change % Realised Oil Prices (USD/bbl) 98.99 1 80.35 +23 AUD/USD Exchange Rate (a
Slide 19: Restatement of 2007 comparatives and FUELS hybrid
Restatement of 2007 comparatives For personal use only Royalty Related Taxes Per financial Impact of new Restated report Interpretation amount 31 December 2007 Cost of sales 1,453 (118) 1,335 Profit before tax 601 118 719 Income tax expense 161 35 196 Royalty related tax − 164 164 expense Profit aft
Slide 20: Reserves & Resources
Reserves & Resources For personal use only PROVED PLUS PROBABLE RESERVES (SANTOS SHARE) BY ACTIVITY Sales gas (incl. Crude oil Condensate LPG Total ethane & LNG) mmbbl mmbbl 000 mmboe PJ tonnes Reserves year end 2007 4271 79 43 2982 879 Production -230 -10 -3 -251 -54 Additions 1536 14 2 258 280 Acq
Slide 21: Contact Information
Contact Information For personal use only Registered and head office Andrew Nairn Share Register Group Executive Investor Relations Adelaide Level 10, Santos Centre Ground Floor, Santos Centre Direct: + 61 8 8116 5314 60 Flinders Street Facsimile: +61 8 8116 5131 Adelaide, South Australia 5000 Email