Santos Full Year 2024 Earnings: EPS Misses Expectations

Santos (ASX:STO) Full Year 2024 Results

Key Financial Results

• Revenue: US$5.38b (down 8.6% from FY 2023).
• Net income: US$1.22b (down 14% from FY 2023).
• Profit margin: 23% (down from 24% in FY 2023). The decrease in margin was driven by lower revenue.
• EPS: US$0.38 (down from US$0.43 in FY 2023).

STO Production and Reserves

Oil reserves

• Proven reserves: 142 MMbbls.

Gas reserves

• Proven reserves: 4516.422 Bcf.

Combined production

• Oil equivalent production: 87.1 MMboe (91.7 MMboe in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Santos EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.3%.

The primary driver behind last 12 months revenue was the Papua New Guinea (PNG) segment contributing a total revenue of US$2.57b (48% of total revenue). Notably, cost of sales worth US$3.40b amounted to 63% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling US$325.0m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how STO's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Oil and Gas industry in Australia.

Performance of the Australian Oil and Gas industry.

The company's shares are down 6.4% from a week ago.

Risk Analysis

You should always think about risks. Case in point, we've spotted 1 warning sign for Santos you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.