Santos avoids writing down stake in GLNG
SANTOS has been forced to slash more than $1.6 billion from the value of its assets following the recent plunge in oil prices.
The ABC reports the company said the after tax non-cash impairment charge, totalling nearly $2.4 billion before tax, would appear when it released its 2014 full-year results later this month.
But Santos, which has seen its share price dive recently, has raised eyebrows after opting against writing down its part in the Gladstone LNG project, which is not due to be finished until later this year.
British-based BG Group last week took a big hit on its rival QCLNG project on Curtis Island when it slashed $8.87 billion from the value of its investment, sparking speculation that Santos and Origin would be forced to follow suit.
Santos chief financial officer Andrew Seaton said his company's project was on time and within budget, and his company also paid considerably less for its stake than BG had for its project.