SYDNEY, Aug. 24 (Xinhua) -- Australian oil and gas giant Santos recorded their half-year result on Thursday, that saw the miner reducing their losses despite taking a sizeable write-off of 689 million U.S. dollars.
Santos posted a half-year net loss of 506 million dollars, but managed to record an underlying profit of 156 million dollars for the period, with the company stating that the delivery of their "turnaround" is in full swing.
Kevin Gallagher, managing director and chief executive officer of Santos, said in a statement that he believes that the best is yet to come for the once embattled resources provider.
"We have removed substantial costs, generated significant free cash flow and reduced net debt. Our forecast free cash flow breakeven for 2017 sits at 33 U.S. dollars per barrel and we generated 302 million dollars in free cash flow in the first half," Gallagher said.
In late June, Santos launched a strategic partnership with existing Chinese shareholders, ENN Group and Hony Capital, who hold 15.1 percent of the gas giant and came at a time when shares in Santos were trading at below 3 Australian dollars per share.
With the current share price sitting over 10 percent higher at 3.47 Australian dollars, the partnership has so far been successful for both sides, and Chairman of Santos Peter Coates said the partnership was the formalization of what was already a great relationship.
"We look forward to a closer relationship with Hony and ENN and their support for the continued growth of Santos for the benefit of all shareholders."
Santos has improved their volume guidance for 2017 to between 77 and 82 million barrels of oil equivalent, but will not pay an interim dividend - instead choosing to continue to reduce net debt, currently sitting at 2.9 billion dollars.
