(Adds CEO quote, background, net loss details, production costs)
Feb 21 (Reuters) - Santos Ltd, Australia's No. 2 independent gas producer, reported a more-than-fivefold rise in annual underlying profit on Wednesday, but did not declare a dividend.
The revival puts Santos in a strong position to fend off suitors, like private equity-backed Harbour Energy, which made a A$9.5 billion takeover approach that was rebuffed by Santos last year. profit for 2017 rose to $336 million from $63 million a year earlier, thanks to cost cuts, higher sales volumes and a rebound in oil and gas prices. Analysts had expected underlying profit of $348.5 million, according to Thomson Reuters I/B/E/S.
With the rebound in oil and gas prices over the past year and sharp cost-cutting and debt reduction under Chief Executive Kevin Gallagher over the past two years, Santos is now considered to be in a much better position to fend off predators.
"Santos is also on track to supply about 70 petajoules of gas into the east coast domestic market this year," Gallagher said in a statement.
At the bottom line, Santos recorded an annual net loss of $360 million, worse than analysts' estimates of a net loss of $351.4 million, according to Thomson Reuters I/B/E/S.
The result was better than the $1.05 billion loss it reported in 2016, which featured a large writedown on Santos' Gladstone liquefied natural gas project.