Annual Report 2004 61
15. Interest-Bearing Liabilities (continued)
(c) Medium-term notes
The Santos Group has a A$500.0 million (2003: A$500.0 million) Australian medium-term note program. At 31 December 2004, A$20.0 million
(2003: A$20.0 million) of medium-term notes have been issued at fixed rate and swapped into floating rates of interest of 6.25% (2003: 6.20%),
maturing in 2008.
(d) Long-term notes
US$170.0 million of long-term notes were issued to institutional investors in 1993 at an annual effective interest rate of 6.95% and are
repayable in five annual US dollar instalments which commenced in December 2001. As at 31 December 2004, US$34.0 million (A$43.7 million)
remains outstanding (2003: US$68.0 million equivalent to A$90.8 million). A further US$290.0 million (A$372.5 million) (2003: US$290.0 million
equivalent to A$387.3 million) of long-term notes were issued to institutional investors in 2000 at an annual effective interest rate of 8.37%
and are repayable at varying maturity dates between 2007 and 2015. In addition US$300.0 million (A$385.3 million) (2003: US$300.0 million
equivalent to A$400.6 million) of long-term notes were issued to institutional investors in 2002 at an annual effective interest rate of 6.11%
and are repayable at varying maturity dates between 2009 and 2022.
The Santos Group has entered into interest rate swap contracts to manage the exposure to interest rates. This has resulted in a weighted average
interest rate on interest-bearing liabilities of 5.50% as at 31 December 2004 (2003: 4.72%). All facilities are unsecured and arranged through a
controlled entity, Santos Finance Ltd, and are guaranteed by Santos Ltd.
Consolidated Santos Ltd
2004 2003 2004 2003
16. Provisions $million $million $million $million
Current
Employee benefits 48.7 47.7 47.6 46.3
Future restoration costs 3.9 7.6 0.9 1.2
Non-executive Directors’ retirement benefits 0.2 – 0.2 –
52.8 55.3 48.7 47.5
Non-current
Future restoration costs 129.4 113.7 43.8 36.0
Non-executive Directors’ retirement benefits 2.2 2.3 2.2 2.3
131.6 116.0 46.0 38.3
Reconciliations of the carrying amount of the non-executive Directors’ retirement 
benefits are set out below:
Current
Carrying amount at beginning of the year – 0.6 – 0.6
Transfer from/(to) non-current provision 0.2 (0.3) 0.2 (0.3)
Payments made during the year – (0.3) – (0.3)
Carrying amount at end of the year 0.2 – 0.2 –
Non-current
Carrying amount at beginning of the year 2.3 1.7 2.3 1.7
Provision made during the year 0.1 0.3 0.1 0.3
Transfer from/(to) current provision (0.2) 0.3 (0.2) 0.3
Carrying amount at end of the year 2.2 2.3 2.2 2.3
17. Other Liabilities
Current
Deferred foreign currency fluctuations on borrowings 3.5 10.6 – –
Accrued fluctuations on foreign currency swaps 11.2 – – –
14.7 10.6 – –
Non-current
Deferred foreign currency fluctuations on borrowings 33.9 55.7 – –
The deferred foreign currency fluctuations on US dollar borrowings designated as hedges reflect the deferred gains arising from the movement of the
Australian dollar against the US dollar from the inception of the drawdown of the borrowings to balance date.
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