Santos Limited: Initiation of Coverage- Power Moves in Contracts, Decommissioning, & Growth!

Santos Limited reported its 2024 full-year financial and operational results, presenting a detailed picture of the company’s current status, achievements, and challenges. The company highlighted a strong financial performance supported by disciplined cost controls, robust revenues, and significant strategic projects either completed or progressing as scheduled. On the positive side, Santos reported sales revenue of $5.4 billion, which translated into $3.7 billion in EBITDAX and $1.2 billion in profit after tax. With a production level of 87.1 million barrels of oil equivalent at the high end of their guidance, they showed resilience to external pressures such as a global inflationary environment. A critical success factor has been their low-cost operating model, which has enabled them to generate $1.9 billion in free cash flow from operations. Moreover, the balance sheet strength allows them to pay a final unfranked dividend of USD 0.103 per share, with a total annual dividend of USD 0.233 per share, highlighting Santos’s commitment to returning value to shareholders.