Santos: Interim result 2014

The investment phase of Santos's transformation is almost complete. Now bring on the cash flow.

The early start to the PNG LNG project, of which Santos owns a 13% stake, is an example of the change that this once sleepy gas producer is undergoing. The project will produce about 7m tonnes of LNG a year, all of it at oil-linked prices. Although PNG LNG made only a small contribution to the half year result – volumes rose just 2% – revenue rose 25% partly because oil and LNG attract higher margins than gas.

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