2023 underlying profit 1.42 bln vs 1.49 bln consensus
Dividend beats forecasts, but no buyback
First gas from Barossa expected in Q3 2025

Feb 21 Reuters Australian gas producer Santos reported a worsethanfeared 42 drop in annual profit on Wednesday on weaker gas prices and output and flagged it was working to boost its valuation after merger talks failed with bigger rival Woodside.

Santos, which only weeks ago stopped merger talks with Woodside Energy, reported an underlying profit of 1.42 billion for the year ended Dec. 31, down from 2.46 billion a year earlier.

The result missed an LSEG consensus estimate of 1.49 billion, and Santos shares fell as much as 2 in early trade.

The result comes as investors push the company to look for ways to revive an anemic share price that missed out on much of the 2022 boom in energy stocks. However the company shed little light on its strategy review.

On an investor call, CEO Kevin Gallagher did not rule out a proposal by hedge fund L1 Capital for Santos to spin off its lucrative liquefied natural gas LNG business, and said the company was continuing to work with advisers on ideas to improve the share price.

As you saw with the Woodside discussions, we are more than willing and open to consider other opportunities if and when they become available, he said.

Santos said work on the subsea infrastructure for its 4.3 billion Barossa gas project off northern Australia would start this quarter after it secured regulatory…