Santos reports near billion-dollar loss

Santos webOIL prices have hit yet another major player, with Santos announcing a net loss of $935 million for the 2014 full year despite record sales revenue.

Santos is in the process of selling the pipeline that supplies the Gladstone LNG (GLNG) plant with gas in an attempt to lift its balance sheet.

The company has hired Goldman Sachs to advise on the sale process, with all joint venture partners now fully supportive.

Conversely, the company’s full-year production rose 6 per cent to 54.1 million barrels of oil equivalent, and the GLNG project is on track for completion in the second half of this year.

“Capital expenditure in 2015 is forecast at $2 billion, 44 per cent lower than 2014, and we expect to reduce production costs per barrel by 10 per cent,” Santos managing director and chief executive David Knox said.

“Costs will be tightly managed as we work through the current oil price environment.”

Santos announced job cuts and pay freezes late last year, in light of low oil prices.

So far, 520 positions have been made redundant.