The Santos Ltd (ASX: STO) share price is having a tough session on Wednesday.

In afternoon trade, the energy giant's shares are down 4% to $6.59.

This follows the release of the company's full year results this morning.

Santos share price tumbles on full year results

• Total revenue down 8.5% to US$5.5 billion
• EBITDAX down 9.2% to US$3.7 billion
• Profit after tax down 10.7% to US$1.26 billion
• Free cash flow of US$1.9 billion
• Final dividend of 10.3 US cents per share (total FY24 dividends of 23.3 US cents)

What happened in FY 2024?

For the 12 months ended 31 December, Santos posted an 8.5% decline in total revenue to U$5.5 billion. Management notes that this was due to lower volumes and lower realised prices compared to FY 2023.

Total production volumes were 87.1 mmboe in FY 2024 with an average realised price of $84.76 per barrel.

This ultimately led to Santos' EBITDAX falling 9.2% year on year to US$3.7 billion and its profit after tax dropping by 10.7% to US$1.26 billion.

In light of this profit decline, the Santos board cut its final dividend by 41% to 10.3 US cents per share, bringing its total dividends for FY 2024 to 23.3 US cents. This is down 11% from 26.2 US cents in FY 2023.

Management commentary

Santos CEO, Kevin Gallagher, was pleased with its performance in FY 2024. He said:

A highlight of the year was the successful startup of Moomba CCS phase one in September, which had an immediate and ongoing impact on the company's emissions. Net equity Scope 1 and 2 emissions for 2024 reduced by 26 per cent and fourth quarter emissions intensity reduced by 18 per cent compared to our baseline year of 2019-20.

Importantly, Moomba CCS phase one gives us confidence in the potential to build a commercial carbon management services business as customer demand for CCS grows in Australia and in Asia. Another strong cash flow year from the long-life gas assets in our base business has enabled the company to deliver returns to shareholders and invest in our Barossa and Pikka development projects that will bring new production online this year and next.

Outlook

Santos revealed that its guidance for FY 2025 remains unchanged.

It continues to target production volumes of 90 to 97 mmboe and sales volumes of 92 to 99 mmboe.

Capital expenditure (sustaining) is forecast to be ~US$1.2 billion to $1.3 billion. Whereas capital expenditure for major projects is forecast to also be ~US$1.2 billion to US$1.3 billion.

Finally, unit production costs are expected in the range of US$7.00 to US7.50 per boe.