Santos Limited
(ASX:STO) has forecast being free cash flow positive by the fourth quarter of this year with an oil price averaging $US60 a barrel.
Managing Director David Knox said at the energy producer’s AGM that once the Gladstone LNG plant begins exporting it will be free cash flow positive for the full year in 2016.
Mr Knox says that since the last meeting the PNG LNG project had begun shipping gas with 87 cargoes leaving port for Asia.
The importance of the Gladstone LNG plant was stressed, it was said to be a catalyst for the development of east cost resources having exposed the Cooper basin to new markets.
Chairmen Ken Borda also addressed the meeting and explained his decision to step down was a personal one focussed on lightening his workload.
Santos reported a net loss of $1 billion in the 2014 calendar year.
