Santos impairs everything but the big one

From the SMH:

Santos says it expects to write $1.6 billion off the value of its assets when it announces full-year results on February 20.

“The impairment charge reflects the lower oil price environment” and relates to the “historical book value of the company’s assets”, the company said in an announcement to the ASX this morning.

There is no impairment of GLNG, the company said, “which is on track for first LNG in the second half of 2015, within budget”.

Santos will now assume brent oil prices of $US55/barrel this year, $US70/bbl in 2017, $US90/bbl in 2018 and $US90/bbl from then on.

Very amusing. It should read $55, 60, 60, 60. The big, fat GLNG writedowns will have to wait for a new day, and new management. In the meantime a white elephant balance sheet can act as a nice overhang for shareholders.

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