text: **2004 WAS A YEAR OF GOOD**
  **OPERATING RESULTS**
  Overall the increase in 2004 profit 
  of 16% reflected a year of sound 
  operating performance. Sales 
  revenue was a record $1,501 
  million, up 2.5% on 2003, 
  reflecting higher prices across 
  most products and was achieved 
  despite lower production as a 
  result of the Moomba incident 
  and declining output from late 
  life fields. 
  
  **‘The sound operating results**
  **achieved in 2004 underline**
  **the changing face of Santos**
  **towards a higher value, higher**
  **margin business. We ended the**
  **year with a strong financial**
  **position and our financial**
  **flexibility intact.’**
  
  Santos benefited from higher 
  world oil prices and realised 
  US$51.83 per boe in 2004, an 
  increase of 19% over 2003. The 
  benefit of higher world oil prices 
  substantially offset the impact 
  of lower production volumes. 
  **PETER WASOW**
  Chief Financial Officer 
  
  Santos was also able to negotiate 
  higher domestic gas prices (up 
  4% on average) and deliver new 
  revenue streams from project 
  start-ups and acquisitions during 
  the year. 