Changes are happening - please bear with us while we update our site.

Join Free
Log in

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Join Free
Log in

Santos Ltd (STO) Doubles Half Year Profit, Acquiring Quadrant Energy For US$2.15 Billion

Santos Ltd (ASX:STO) released its 2018 half year financial results to the market today revealing a doubling of underlying profit.
Picture of Jaz Harrison

Jaz Harrison

Jaz is a Staff Writer for Rask. She is a keen investor who loves to thoroughly poke holes in an investment idea before it has a chance of making it into her portfolio. Jaz invests for the long-term and doesn't sweat the small stuff. She strongly believes that empowering people with knowledge is the best way for them to take charge of their finances, which is exactly the approach she takes with her own money and investments.
More analysis

Santos Ltd (ASX: STO) released its 2018 half year financial results to the market today revealing a doubling of underlying profit.

Santos is one of Australia’s largest oil and gas companies.

Here are some of the highlights from its result, all amounts are in US dollars:

  • Sales up 16% to $1.68 billion
  • EBITDAX rose 23% to $883 million (click here to learn what EBITDA means)
  • Underlying profit grew 99% to $217 million
  • Interim dividend of 3.5 cents per share declared

The rising oil price has been a beneficial component of the Santos result, the Brent Crude price has risen to US$74.66 per barrel according to Bloomberg.

Santos CEO and Managing Director Kevin Gallagher said: “Our strategy has been to establish a low-cost operating model that delivers strong cash flows through the oil price cycle.”

He was pleased to point out that the growth was achieved despite the loss of production from its PNG operations due to an earthquake.

Quadrant Energy acquisition

Santos is acquiring 100% of Quadrant Energy from various stakeholders including Wesfarmers Ltd (ASX: WES) and Macquarie Group Ltd (ASX: MQG) for a total price of US$2.15 billion.

Mr Gallagher said that this acquisition will strengthen Santos’ offshore operating capability and it is “materially value accretive for Santos shareholders and advances Santos’ aim to be Australia’s leading domestic natural gas supplier.”

Introducing The Australian Investors Podcast

Join The Rask Group’s founder, Owen Raszkiewicz, as he profiles Australia’s best investors, founders, authors and financial thinkers. Download it free on iTunes, Castbox, SoundCloud or wherever you choose to listen.

itunessoundcloudcastboxdownload

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Access all reports now

Unsubscribe anytime. Read our Terms, Financial Services Guide, Privacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Latest stories

Free passive income report
Skip to content