Santos results for year ended 31 December 2015

Santos reported its 2015 results this morning: statutory NLAT of $2.7 billion includes impairments of $2.8 billion after tax. Production of 57,7 mmboe was up 7% on the pcp, while sales volume of 65.3 mmboe was up slightly on FY14 sales volume of 63.7 mmboe. On an underlying basis, NPAT of $50 million is 91% lower than the previous year. In terms of STI awards, the group scorecard result was 67%, about the same group scorecard result as Woodside Petroleum discussed in this wire and note.(VIEW LINK) Individual performance is also relevant at Santos: unlike WPL that uses a multiplier to adjust company scorecard result up/down, Santos has a separate component worth 40% of the total award. No cash STI awards paid in the period: the ex CEO David Knox and the CFO declined, while the remaining executives will take reduced STI awards deferred equity (no cash), with deferral of 2 years. Board discretion reduced the payments to between 22%-42% of maximum payable.