The loss comes on the back of lower oil prices and a large $2 billion impairment charge announced earlier this week against its Gladstone liquefied natural gas project in Queensland.
Excluding impairments and other one-off items, the company’s underlying first-half loss was $6.5 million after tax.
It will not pay a dividend for the first half.
However, managing director and chief executive officer Gallagher, who joined the company in February, said the establishment of a new operating model for Santos would “lift productivity and drive long-term value for shareholders in a low oil price environment”.
Gallagher said in a statement that the appointment of the new executive team was a key part of the new operating model.
“Our progress is also evidenced by record production and significant cost reductions achieved in the first half … But there is still a lot of work ahead of us.
“Our near-term focus is clear: embed the new operating model, drive down costs and apply available cash flow to reduce debt.
“I am confident we are taking the right steps to ensure Santos becomes a strong and sustainable business.”
In other results reported today, Woodside Petroleum’s first-half profit has slumped 50 per cent slump on the back of lower oil prices, while property and construction company Lendlease Group has lifted full-year net profit 12.9 per cent to $698 million.
Medibank Private has lifted full-year profit by 46.4 per cent to $417.6 million, helped by expanding margins in its main health insurance business. Health insurance premium revenue rose 4 per cent to $6.17 billion, despite a slowing growth across the industry amid affordability challenges. However, operating profit rose due to focus on limiting health claims and lower growth in hospital utilisation rates.
Help our journalists uncover the facts
In times like these InDaily provides valuable, local independent journalism in South Australia. As a news organisation it offers an alternative to The Advertiser, a different voice and a closer look at what is happening in our city and state for free. Any contribution to help fund our work is appreciated. Please click below to donate to InDaily.