Santos has announced a 33% plunge in net profit for the first half of the 2025 financial year (FY25) and extended the due diligence period for the consortium making an agreed bid.
The oil and gas company said net profit after tax fell to US$439 million (A$676 million) in the six months ended 30 June 2025 from $659 million in the previous corresponding period (pcp).
Underlying profit dropped 22% to $508 million on revenue, which eased 4% to $2.659 billion as impairment losses increased 376% to $119 million and net financial costs jumped 66% $116 million.
Underlying profit was lower than the pcp due to lower revenue from realised domestic gas and crude oil pricing and sales volumes, and higher restoration and financing costs, offset by lower tax, Chief Financial Officer Sherry Duhe told an investor call.
Directors declared a 10% franked interim dividend of US 13.4 cents per share to be paid on 1 October to shareholders on record on 3 September 2025, up from 13 cents in the pcp.
Managing Director and Chief Executive Officer Kevin Gallagher said the strong free cash flow from operations of $1.1 billion, unchanged from the pcp, reflected the strength of Santos’ diversified portfolio, the success of its disciplined low-cost operating model and the cash-generative capability of the base business.
“Today’s results demonstrate the reliability of Santos to generate strong cash flow from operations, deliver major development projects successfully and provide competitive, reliable shareholder returns through disciplined capital allocation,” Gallagher said in ASX announcement.
Production volumes were 44.1 million barrels of oil equivalent (mmboe), also comparable with the prior year.
Santos also agreed to give the consortium, including the Abu Dhabi National Oil Company, Abu Dhabi Development Holding Company (ADQ) and private equity group Carlyle , until 19 September 2025 to finalise due diligence for its agreed cash offer of US$5.76 (A$8.89) per share valuing the company at US$18.7 billion.
On 24 August, the consortium confirmed it had not found anything in due diligence that would lead it to withdraw its indicative proposal.
Santos provided FY25 guidance for production of between 90 and 95 mmboe and sales volumes of 92-99 mmboe, compared with 87.1 mmboe in FY24 and 91.7 mmboe, respectively.
“Santos is uniquely positioned for profitable growth,” Gallagher told analysts.
Santos shares (ASX: STO) were trading 9.0 cents (1.16%) higher at A$7.85, capitalising the company at $25.48 billion, at the time of writing.
