NOTES TO THE FINANCIAL STA TEMENTS for the year ended 31 December 2004 68 Annual Report 2004 Consolidated Santos Ltd 2004 2003 2004 2003 20. Retained Profits $million $million $million $million Balance at the end of the year 1,368.3 1,203.6 1,299.8 871.9 Movements during the year Balance at the beginning of the year 1,203.6 983.2 871.9 795.5 Effect of initial adoption of revised AASB 1028 “Employee Benefits” – (1.9) – (1.8) Effect of initial adoption of AASB 1044 “Provisions, Contingent Liabilities and  Contingent Assets” – 93.3 – 93.3 Net profit after income tax attributable to the shareholders of Santos Ltd 379.9 327.0 643.1 182.9 Dividends recognised during the year (212.8) (198.0) (212.8) (198.0) Premium paid on buy-back of reset convertible preference share (2.4) – (2.4) – Balance at the end of the year 1,368.3 1,203.6 1,299.8 871.9 Dividends provided for and paid by the Company Special dividend of $5.00 per redeemable convertible preference share paid on  7 October 2004 on 2,865,821 shares, fully franked 14.3 – 14.3 – Preferential, non-cumulative dividend of $3.2940 per reset convertible prefer ence  share paid on 31 March 2004, fully franked (2003: $3.2760 per share pr ovided  and paid on 31 March 2003, fully franked) 11.5 11.5 11.5 11.5 Preferential, non-cumulative dividend of $3.2940 per reset convertible prefer ence  share paid on 30 September 2004, fully franked (2003: $3.2940 per shar e paid on 30 September 2003, fully franked) 11.5 11.5 11.5 11.5 Final 2003 dividend of 15.0 cents per ordinary share paid on 31 March 2004,  fully franked (2003: 15.0 cents per share, fully franked) 87.7 87.4 87.7 87.4 Interim dividend of 15.0 cents per ordinary share pai on 30 September 2004,  fully franked (2003: 15.0 cents per share, fully franked) 87.8 87.6 87.8 87.6 212.8 198.0 212.8 198.0 Subsequent to reporting date Since the end of the financial year, the Directors have declared the following  dividends payable on 31 March 2005: Final 2004 dividend of 18.0 cents per ordinary share, fully franked 105.4 105.4 Preferential, non-cumulative floating rate dividend of $2.4497 per redeem able  convertible preference share, fully franked 14.7 14.7 120.1 120.1 The financial effect of these dividends has not been brought to account in th e  consolidated financial statements for the year ended 31 December 2004. Franking credits Balance of franking account credits at 30% available for future distribution,  after adjusting for franking credits which will arise from the payment of  the  current income tax provision at 31 December 2004 394.7 358.3 Consolidated Santos Ltd 2004 2003 2004 2003 19. Foreign Currency Translation Reserve $million $million $million $million Balance at the end of the year (9.0) (8.8) – – Movements during the year Balance at the beginning of the year (8.8) (4.1) – – Exchange difference on net investment in foreign operations and related hedg es: Gross hedges 17.3 123.5 – – Related income tax  (5.2) (37.1) – – Overseas net assets (12.3) (91.1) – – Net translation adjustment (0.2) (4.7) – – Balance at the end of the year (9.0) (8.8) – – The foreign currency translation reserve records the foreign currency differen ces arising from the translation of self-sustaining foreign operations, the translation of transactions that hedge the Company’s net investment in a forei gn operation or the translation of foreign currency monetary items forming part of the net investment in a self-sustaining operation.