Watch for the jump today!Santos year profit beats...

Watch for the jump today!


Santos year profit beats forecasts
February 17, 2011 - 9:32AM

Santos, an Australian oil and gas producer, reported a 46 per cent rise in full year net profit, topping broker forecasts, bolstered by soaring oil and gas prices and lower exploration spending.

Santos, which recently gave the go-ahead for its $16 billion Gladstone liquefied natural gas (GLNG) investment, reiterated that it expects to produce 48-52 million barrels of oil equivalent in 2011, against 49.9 million boe in 2010.

"Cooper Basin operations are expected to continue to be impacted through 2011 by wet weather," the company said.
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Coal seam gas drilling for GLNG was hit by recent floods, but Santos said drilling has resumed and the project is on track to produce LNG in 2015.

Underlying net profit rose to $376 million for 2010 from $257 million a year earlier, above analysts' forecasts around $365.6 million, according to Thomson Reuters I/B/E/S.

Net profit rose 15 per cent to $500 million.

For 2011, analysts are expecting profit to grow by about 7 per cent.

The company has four new projects - Spar, Reindeer, Chim Sao and Wortel--due to start up this year which it said would spur production growth from 2012.

Santos shares last traded at $13.80, up 10 per cent from the $12.55 a share investors paid in December when the company raised $500 million to help fund the GLNG project.

Reuters