Oil and gas producer Santos will cut jobs, freeze executive salaries and put assets up for sale after suffering a $935 million annual loss.
The country's second largest energy producer is scrambling to maintain its investment grade credit rating, and spending cuts have already resulted in 520 job losses since November.
Chief executive David Knox has flagged further job and spending cuts in 2015, as the company conducts an operational review.
He remains upbeat about the company's prospects, which will be boosted by the start up of Santos' Gladstone LNG project in Queensland in the second half of 2015.
"We need to get through today's cyclone but beyond that it's going to be very exciting," Mr Knox said.
The Gladstone project is in the firing line of Cyclone Marcia, and staff are being evacuated from Curtis Island.
Despite the full year loss, Santos delivered its highest production in five years, record sales revenue, strong operating cash flow, opened its PNG LNG project and commissioned the Gladstone LNG project, Mr Knox said.
Santos wrote down the value of its oil and gas assets by $1.6 billion in 2014 because of sliding global oil prices, which have halved in six months.
In an effort to cut spending, executive pay will be frozen at 2014 levels, which included $3.4 million in remuneration for Mr Knox.
Santos still paid out short term bonuses to executives for the year, although they were reduced from 78 per cent to 58 per cent of total possible incentives.
Maintaining an investment grade credit rating was most important, the company said.
"We're focused on cutting 25 per cent out of our capital expenditure, we've put $1 billion in additional liquidity facilities in place, we're looking at asset sales where it's prudent to do so and we're taking operational expenditure down as well," Mr Knox said.
Capital expenditure for 2015 is forecast to be $2 billion, 44 per cent lower than 2014, and 10 per cent cuts to production costs are being targeted.
Net debt increased by $2.6 billion to $7.5 billion.
Santos shares dropped 21 cents, or 2.55 per cent, to $8.03.
SANTOS SLUMPS TO MASSIVE LOSS
* Net loss of $935m, down from a $516m net profit in 2013
* Underlying profit of $533m, up six pct from $504m
* Revenue of $4.04b, up 12 pct from $3.6b
* Final dividend of 15 cents, unchanged
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