Source: finance

<table>
  <tr>
    <th rowspan="2">Note</th>
    <th colspan="2">Consolidated</th>
    <th colspan="2">Santos Ltd</th>
  </tr>
  <tr>
    <th>2004 $million</th>
    <th>2003 $million</th>
    <th>2004 $million</th>
    <th>2003 $million</th>
  </tr>
  <tr>
    <td colspan="5"><b>Cash flows from operating activities</b></td>
  </tr>
  <tr>
    <td>Receipts from customers</td>
    <td>1,544.3</td>
    <td>1,637.3</td>
    <td>644.4</td>
    <td>683.0</td>
  </tr>
  <tr>
    <td>Dividends received</td>
    <td>-</td>
    <td>0.4</td>
    <td>251.7</td>
    <td>0.4</td>
  </tr>
  <tr>
    <td>Interest received</td>
    <td>3.5</td>
    <td>2.5</td>
    <td>45.1</td>
    <td>36.9</td>
  </tr>
  <tr>
    <td>Overriding royalties received</td>
    <td>14.5</td>
    <td>17.0</td>
    <td>19.0</td>
    <td>22.1</td>
  </tr>
  <tr>
    <td>Pipeline tariffs and other receipts</td>
    <td>19.9</td>
    <td>28.2</td>
    <td>18.0</td>
    <td>1.6</td>
  </tr>
  <tr>
    <td>Payments to suppliers and employees</td>
    <td>(583.6)</td>
    <td>(439.9)</td>
    <td>(279.0)</td>
    <td>(186.4)</td>
  </tr>
  <tr>
    <td>Royalty, excise and PRRT payments</td>
    <td>(169.6)</td>
    <td>(118.7)</td>
    <td>(78.4)</td>
    <td>(39.8)</td>
  </tr>
  <tr>
    <td>Borrowing costs paid</td>
    <td>(65.2)</td>
    <td>(60.9)</td>
    <td>(90.6)</td>
    <td>(83.6)</td>
  </tr>
  <tr>
    <td>Income taxes paid</td>
    <td>(158.8)</td>
    <td>(168.6)</td>
    <td>(137.5)</td>
    <td>(65.1)</td>
  </tr>
  <tr>
    <td><b>Net cash provided by operating activities</b></td>
    <td>24</td>
    <td>605.0</td>
    <td>897.3</td>
    <td>392.7</td>
    <td>369.1</td>
  </tr>
  <tr>
    <td colspan="5"><b>Cash flows from investing activities</b></td>
  </tr>
  <tr>
    <td>Payments for:</td>
    <td></td>
    <td></td>
    <td></td>
    <td></td>
  </tr>
  <tr>
    <td>Exploration</td>
    <td>(126.0)</td>
    <td>(149.8)</td>
    <td>(65.7)</td>
    <td>(30.6)</td>
  </tr>
  <tr>
    <td>Delineation</td>
    <td>(73.7)</td>
    <td>(75.0)</td>
    <td>(6.1)</td>
    <td>(29.5)</td>
  </tr>
  <tr>
    <td>Development</td>
    <td>(256.1)</td>
    <td>(188.1)</td>
    <td>(124.4)</td>
    <td>(68.7)</td>
  </tr>
  <tr>
    <td>Land and buildings, plant and equipment</td>
    <td>(343.1)</td>
    <td>(337.8)</td>
    <td>(127.7)</td>
    <td>(91.7)</td>
  </tr>
  <tr>
    <td>Acquisitions of oil and gas assets</td>
    <td>(14.5)</td>
    <td>(7.6)</td>
    <td>-</td>
    <td>(1.5)</td>
  </tr>
  <tr>
    <td>Acquisitions of controlled entities</td>
    <td>(112.3)</td>
    <td>(22.7)</td>
    <td>(93.6)</td>
    <td>(22.7)</td>
  </tr>
  <tr>
    <td>Share subscriptions in controlled entities</td>
    <td>-</td>
    <td>-</td>
    <td>(151.7)</td>
    <td>(469.9)</td>
  </tr>
  <tr>
    <td>Restoration</td>
    <td>(7.3)</td>
    <td>(2.6)</td>
    <td>(0.1)</td>
    <td>(0.3)</td>
  </tr>
  <tr>
    <td>Proceeds from disposal of non-current assets</td>
    <td>39.9</td>
    <td>108.0</td>
    <td>430.0</td>
    <td>62.7</td>
  </tr>
  <tr>
    <td>Proceeds from disposal of controlled entities</td>
    <td>-</td>
    <td>22.6</td>
    <td>-</td>
    <td>3.9</td>
  </tr>
  <tr>
    <td>Other investments</td>
    <td>(0.5)</td>
    <td>-</td>
    <td>(0.5)</td>
    <td>-</td>
  </tr>
  <tr>
    <td><b>Net cash used in investing activities</b></td>
    <td></td>
    <td>(893.6)</td>
    <td>(653.0)</td>
    <td>(139.8)</td>
    <td>(648.3)</td>
  </tr>
  <tr>
    <td colspan="5"><b>Cash flows from financing activities</b></td>
  </tr>
  <tr>
    <td>Dividends paid</td>
    <td>(212.8)</td>
    <td>(198.0)</td>
    <td>(212.8)</td>
    <td>(198.0)</td>
  </tr>
  <tr>
    <td>Proceeds from issues of ordinary shares</td>
    <td>6.4</td>
    <td>8.3</td>
    <td>6.4</td>
    <td>8.3</td>
  </tr>
  <tr>
    <td>Proceeds from issue of redeemable convertible preference shares</td>
    <td>18</td>
    <td>589.5</td>
    <td>-</td>
    <td>589.5</td>
    <td>-</td>
  </tr>
  <tr>
    <td>Redemption of reset convertible preference shares</td>
    <td>18</td>
    <td>(350.0)</td>
    <td>-</td>
    <td>(350.0)</td>
    <td>-</td>
  </tr>
  <tr>
    <td>Net drawdowns/(repayments) of borrowings</td>
    <td>282.8</td>
    <td>(20.4)</td>
    <td>-</td>
    <td>282.8</td>
    <td>-</td>
  </tr>
  <tr>
    <td>Net (payments to)/(receipts from controlled entities</td>
    <td>-</td>
    <td>-</td>
    <td>(297.0)</td>
    <td>494.1</td>
  </tr>
  <tr>
    <td>Premium paid on buy-back of reset convertible preference shares</td>
    <td>20</td>
    <td>(2.4)</td>
    <td>-</td>
    <td>(2.4)</td>
    <td>-</td>
  </tr>
  <tr>
    <td>Other</td>
    <td>0.4</td>
    <td>-</td>
    <td>-</td>
    <td>0.4</td>
    <td>-</td>
  </tr>
  <tr>
    <td><b>Net cash (used in)/provided by financing activities</b></td>
    <td></td>
    <td>313.9</td>
    <td>(210.1)</td>
    <td>(266.3)</td>
    <td>304.4</td>
  </tr>
  <tr>
    <td><b>Net increase/(decrease) in cash</b></td>
    <td></td>
    <td>25.3</td>
    <td>34.2</td>
    <td>(13.4)</td>
    <td>25.2</td>
  </tr>
  <tr>
    <td><b>Cash at the beginning of the year</b></td>
    <td></td>
    <td>111.1</td>
    <td>84.8</td>
    <td>52.9</td>
    <td>26.6</td>
  </tr>
  <tr>
    <td>Effects of exchange rate changes on the balances of cash held in foreign currencies</td>
    <td></td>
    <td>(8.4)</td>
    <td>(7.9)</td>
    <td>(0.2)</td>
    <td>1.1</td>
  </tr>
  <tr>
    <td><b>Cash at the end of the year</b></td>
    <td></td>
    <td>128.0</td>
    <td>111.1</td>
    <td>39.3</td>
    <td>52.9</td>
  </tr>
</table>

The statements of cash flows are to be read in conjunction with the notes of the financial statements.