Energy company Santos has foreshadowed potential writedowns following a steep slump in oil prices.
Santos has confirmed it met its production guidance in 2014 with 54.1 million barrels of oil equivalent (mmboe), while the average oil price during the quarter fell 20 per cent to $92 per barrel.
The oil and gas company said its preliminary guidance on costs, royalties and spending remains subject to finalisation of its accounts, which includes an impairment review being undertaken in relation to lower oil prices.
"As such, the actual results for the year ended 31 December 2014 may differ from the guidance given in this update," Santos said in its fourth quarter report.
Oil prices have halved in the past seven months to around $US50 a barrel, weighing on some of the company's riskier projects.
Some analysts were disappointed Santos did not give a range of potential writedowns as it adjusts to a lower oil price environment.
Still, Santos lifted sales revenue and production in the December quarter thanks to the start up of its Papua New Guinea liquefied natural gas project, which cushioned the impact of falling oil prices.
Production and sales of oil and gas rose eight per cent during the three months to December 31, while sales revenue rose three per cent to $1.09 billion.
A weaker Australian dollar partially offset a lower average oil price for the quarter, Santos said.
Investors were pleased with the report, adding 38.5 cents, or 5.2 per cent, to its share price as of 1400 AEDT, to $7.805.
"Notwithstanding the fall in oil prices, Santos has delivered growth in full year and quarterly production, and record sales revenue," chief executive David Knox said.
He added that the commissioning of the $US18.5 billion Gladstone LNG project in Queensland was on track to be completed in the second half of 2015.
"GLNG is more than 90 per cent complete and it remains on time and on budget," Mr Knox said.
Santos has a 30 per cent stake in the GLNG project.
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