Santos 4Q24 | Climate Transition Analysis

This report comprises general statements of factual information and not financial advice. Read our Important Notice.

Moomba is up and running, but earnings potential remains unclear

Santos (STO:ASX)

Our view

Today’s 4Q update shows STO is moving into consolidation mode in FY25, with lower capex and a focus on delivery of existing projects.

The successful start of Moomba CCS phase 1 will bring down scope 1 emissions but we question the viability of relying on CCS technologies as a revenue source for low-carbon offerings, and further projects such as Bayu Undan CCS are likely to have significantly different economics.

STO should indicate earnings investors can expect from the provision of CCS as a service and the sale of generated ACCUs.