https://newsletter.en.creamermedia.com
Business|Gas|LNG|Oil And Gas|Oil-and-gas|PROJECT|Projects
Business|Gas|LNG|Oil And Gas|Oil-and-gas|PROJECT|Projects
business|gas|lng|oil-and-gas|oilandgas|project|projects

Santos to cut 10% jobs as growth projects near end, annual profit misses estimates

CEO Kevin Gallagher

CEO Kevin Gallagher

18th February 2026

By: Reuters

  

Font size: - +

Australian oil and gas producer Santos reported a steeper-than-expected drop in annual profit on Wednesday, hurt by weak commodity prices, and said it would reduce its headcount by about 10% as major growth projects near completion.

Shares of Australia's second-largest gas producer slipped as much as 1.8% in early trading, but retraced most of those losses to trade marginally lower as of 00:20 GMT.

CEO Kevin Gallagher said that, as it delivered on its Barossa LNG offshore project and neared completion of the Pikka phase 1 project in Alaska, its growth projects would transition to the "base business".

"As these major growth projects come to an end and become a part of the base business, and as we deliver on our cost savings objectives, we are targeting a headcount reduction of around 10%, rightsizing the business."

Santos employs around 4 028 people, according to its 2025 annual report issued along with the results announcement, implying the layoffs would affect around 400 roles. The gas producer did not provide any further details on the cuts.

"The market should like the targeted 10% headcount reduction as a sign of lower forecast operating costs," analysts at Jarden said.

The company added that it will prioritise conducting "a strategic review of Australian Integrated Oil and Gas Portfolio" in 2026, which Jarden said, "may imply a potential for (Santos') Australian asset divestments".

Underlying earnings for fiscal year 2025 at the oil and gas producer tumbled 25% from the prior year to $898-million, missing the Visible Alpha consensus of $904-million by a wide margin.

Weaker commodity prices and a delay in ramping up Barossa LNG due to a technical issue impacted annual earnings.

Santos declared a final dividend of 10.3 cents per share, in line with the FY24 payout but below the market consensus of 20 cents. Revenue for fiscal year 2025 fell 8% to $4.94-billion.

Edited by Reuters

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Craig Miller Technical Services (CMTS)
Craig Miller Technical Services (CMTS)

CMTS is a leading, well-established EC&I contractor with 37+ years of mining and industrial experience. We execute full-scope EC&I projects with...

VISIT SHOWROOM 
CSIR International Convention Centre (CSIR ICC)
CSIR International Convention Centre (CSIR ICC)

CSIR International Convention Centre (CSIR ICC) - the leading conference and events venue in Pretoria/Tshwane.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (13/02/2026)
13th February 2026 By: Martin Creamer
Magazine round up | 13 February 2026
Magazine round up | 13 February 2026
13th February 2026

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.168 0.292s - 185pq - 2rq
Subscribe Now