Net profit for calendar 2008 rose 359 per cent to $1.65 billion, from $359.3 million in 2007, reflecting a $1.2 billion profit from the sale of a 40 per cent interest in the Gladstone liquefied natural gas project to Malaysian group Petronas.
Underlying profit for the year was 42 per cent higher at $572 million, which was marginally higher than the consensus analyst forecast of $558 million.
"Looking forward, Santos is well positioned despite the global financial crisis,'' Santos chief executive David Knox said in a statement.
Revenue during the year increased 11 per cent to $2.8 billion, which was underpinned by higher oil, condensate and gas prices, and a weaker Australian dollar.
The company recorded impairment losses of $216.6 million against a number of assets including, Jeruk and Oyong in Indonesia and the Ballera Plant and Patricia Baleen projects in Australia.
Santos declared a dividend of 20 cents per share, unchanged from the previous corresponding period.
The company has provided a production guidance of between 53 million barrels of oil equivalent (mmboe) and 56 mmboe for the 2009 calendar year.
Santos produced 54.4 mmboe during the 2008 calendar year.
The oil and gas producer has a joint venture with Petronas to develop an LNG plant in Queensland, using coal seam gas as feed.
"Australia has a strategic advantage in its natural gas reserves - it is an abundant and reliable fuel source for low carbon intensity base load power generation,'' Mr Knox said.
A final investment decision is expected by the end of 2009 on the $7.7 billion Gladstone LNG project to enable first cargoes to be exported in early 2014.
