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SANTOS LIMITED — Capital/Financing Update 2017
Feb 13, 2017
65872_rns_2017-02-13_d4dff860-fe48-4001-a25b-67c0e6877b8f.pdf
Capital/Financing Update
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14 February 2017
Change in segment reporting
Santos today announced modifications to its segment reporting structure, effective second half 2016. The revised segment structure will be reported in the 31 December 2016 financial report, to be released on 17 February 2017 and comparative disclosures will be restated.
In accordance with AASB 8 Operating Segments and Santos' new strategy announced on 8 December 2016, the Group has identified its operating segments to be the five core assets: Cooper Basin; GLNG; Papua New Guinea (PNG); Northern Australia; and Western Australia (WA) gas, based on the nature and geographical location of the assets. Non-core assets are grouped and reported as Other. This is the basis on which internal reports are provided to the Chief Executive Officer for assessing performance and determining the allocation of resources within the Group.
Segment performance is measured based on earnings before interest, tax, impairment, exploration and evaluation, depletion, depreciation and amortisation (EBITDAX). Corporate and exploration expenditure and inter-segment eliminations are included in the segment disclosure for reconciliation purposes.
The change in segment reporting has no impact on the net profit or loss of the Group. To enable comparisons with prior period performance, historical segment information for the periods ended 31 December 2015 and 30 June 2016 are contained in an appendix to this release. These have been presented in US dollars, the presentation currency of the Group effective 1 January 2016.
The financial information presented in this release has not been audited.
Ends.
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Media enquiries Rob Malinauskas +61 8 8116 5918/ +61 (0) 438 862 132 [email protected]
Investor enquiries Andrew Nairn +61 8 8116 5314 / +61 (0) 437 166 497 [email protected]
Santos Limited ABN 80 007 550 923 GPO Box 2455, Adelaide SA 5001 T +61 8 8116 5000 F +61 8 8116 5131 www.santos.com
Appendix 1. Year ended 31 December 2015
| Cooper | Northern | Corporate,exploration& | ||||||
|---|---|---|---|---|---|---|---|---|
| US$million | BasinFY15 | GLNG1FY15 | PNGFY15 | AustraliaFY15 | WA GasFY15 | Other2FY15 | eliminationsFY15 | TotalFY15 |
| Revenue | ||||||||
| Sales to external customers | 829 | 97 | 559 | 215 | 227 | 452 | 63 | 2,442 |
| Inter-segment sales3 | 9 | 22 | – | – | – | 14 | (45) | – |
| Other revenue from external customers | 13 | 4 | 7 | – | – | 7 | 5 | 36 |
| Total segment revenue | 851 | 123 | 566 | 215 | 227 | 473 | 23 | 2,478 |
| Costs | ||||||||
| Production costs | (197) | (36) | (61) | (81) | (47) | (215) | 40 | (597) |
| Other operating costs | (83) | (25) | (47) | (1) | (4) | (19) | (21) | (200) |
| Third-party product purchases | (230) | (46) | (2) | – | – | (13) | (67) | (358) |
| Inter-segment purchases1 | (26) | (13) | – | – | – | – | 39 | – |
| Results | ||||||||
| EBITDAX | 293 | 31 | 443 | 143 | 162 | 217 | 165 | 1,454 |
| Depreciation and depletion | (269) | (82) | (103) | (47) | (74) | (185) | (33) | (793) |
| Exploration and evaluation expensed | – | – | – | – | – | – | (188) | (188) |
| Net impairment loss | (1,541) | (454) | – | – | – | (373) | (486) | (2,854) |
| EBIT | (1,517) | (505) | 340 | 96 | 88 | (341) | (542) | (2,381) |
| Net finance costs | (217) | (217) | ||||||
| Loss before tax | (2,598) | |||||||
| Income tax benefit | 621 | 621 | ||||||
| Royalty-related tax benefit | 20 | 7 | – | (14) | (26) | 14 | 23 | 24 |
| Net loss | (1,953) | |||||||
| Asset additions and acquisitions: | ||||||||
| Exploration and evaluation assets | 21 | 11 | 24 | 6 | 1 | 43 | 200 | 306 |
| Oil and gas assets | 503 | 441 | 96 | 22 | 38 | 121 | – | 1,221 |
| 524 | 452 | 120 | 28 | 39 | 164 | 200 | 1,527 |
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GLNG segment also includes Denison, Combabula, Ramyard, Spring Gully and Tardrum.
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Other segment includes Indonesia, Vietnam, WA Oil, Victoria, NSW and Mereenie.
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Inter-segment pricing is determined on an arm's length basis. Inter-segment sales and purchases are eliminated on consolidation.
Appendix 2. Half-year ended 30 June 2016
| US$million | CooperBasinHY16 | GLNG1HY16 | PNGHY16 | NorthernAustraliaHY16 | WA GasHY16 | Other2HY16 | Corporate,exploration &eliminationsHY16 | TotalHY16 |
|---|---|---|---|---|---|---|---|---|
| Revenue | ||||||||
| Sales to external customers | 329 | 216 | 207 | 71 | 74 | 201 | 93 | 1,191 |
| Inter-segment sales3 | 15 | 6 | – | – | – | 16 | (37) | – |
| Other revenue from external customers | 9 | 2 | 3 | – | – | – | – | 14 |
| Total segment revenue | 353 | 224 | 210 | 71 | 74 | 217 | 56 | 1,205 |
| Costs | ||||||||
| Production costs | (85) | (31) | (26) | (37) | (23) | (91) | 20 | (273) |
| Other operating costs | (40) | (35) | (19) | – | (2) | (8) | (66) | (170) |
| Third-party product purchases | (100) | (57) | (1) | – | – | – | (92) | (250) |
| Inter-segment purchases1 | (10) | (35) | – | – | – | – | 45 | – |
| Results | ||||||||
| EBITDAX | 103 | 66 | 165 | 37 | 128 | 90 | (98) | 491 |
| Depreciation and depletion | (97) | (107) | (52) | (24) | (36) | (66) | (17) | (399) |
| Exploration and evaluation expensed | – | – | – | – | – | – | (47) | (47) |
| Net impairment loss | – | (1,500) | – | – | – | (16) | – | (1,516) |
| EBIT | 6 | (1,541) | 113 | 13 | 92 | 8 | (162) | (1,471) |
| Net finance costs | (131) | (131) | ||||||
| Loss before tax | (1,602) | |||||||
| Income tax benefit | 506 | 506 | ||||||
| Royalty-related tax benefit | – | – | – | (1) | (4) | (9) | 6 | (8) |
| Net loss | (1,104) | |||||||
| Asset additions and acquisitions: | ||||||||
| Exploration and evaluation assets | 8 | 2 | – | (2) | – | 29 | 33 | 70 |
| Oil and gas assets | 130 | 151 | 40 | 4 | 26 | 50 | – | 401 |
| 138 | 153 | 40 | 2 | 26 | 79 | 33 | 471 |
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GLNG segment also includes Denison, Combabula, Ramyard, Spring Gully and Tardrum.
-
Other segment includes Indonesia, Vietnam, WA Oil, Victoria, NSW and Mereenie.
-
Inter-segment pricing is determined on an arm's length basis. Inter-segment sales and purchases are eliminated on consolidation