Santos has revealed the whopping impact of the falling oil price on its balance sheet, foreshadowing $2.4 billion in asset writedowns.
The hit will be booked as part of Santos' annual accounts, which are expected to be released on February 20.
Santos said the non-cash charge, which totalled $1.6 billion after tax, included a $758 million writedown on its Cooper Basin assets and $201 million on its producing assets in WA's Carnarvon Basin. This comprises projects such as Barrow and Thevenard islands.
But Santos said there was no writedown of its GLNG project in Queensland, which is due to start production later this year.
Santos used "short-term market prices for four years" in its assumptions, rising to a longer-term price of US$90 a barrel from 2019.
The company said it did not expect the charges to impact its investment-grade credit rating or debt facilities.
Santos shares were 16c lower $7.55 in early trading today.
The hit will be booked as part of Santos' annual accounts, which are expected to be released on February 20.
Santos said the non-cash charge, which totalled $1.6 billion after tax, included a $758 million writedown on its Cooper Basin assets and $201 million on its producing assets in WA's Carnarvon Basin. This comprises projects such as Barrow and Thevenard islands.
But Santos said there was no writedown of its GLNG project in Queensland, which is due to start production later this year.
Santos used "short-term market prices for four years" in its assumptions, rising to a longer-term price of US$90 a barrel from 2019.
The company said it did not expect the charges to impact its investment-grade credit rating or debt facilities.
Santos shares were 16c lower $7.55 in early trading today.