STATEMENTS OF FINANCIAL PERFORMANCE for the year ended 31 December 2004 Consolidated Santos Ltd 2004 2003 2004 2003 Note $million $million $million $million Product sales 2 1,500.9 1,465.0 568.8 616.3 Cost of sales 3 (1,049.8) (974.4) (414.5) (356.6) Gross profit 451.1 490.6 154.3 259.7 Other revenue 2 252.3 154.4 858.0 126.2 Other expenses 3 (129.0) (179.5) (221.0) (108.3) Borrowing costs 4 (33.6) (34.6) (91.1) (84.0) Profit from ordinary activities before income tax expense 540.8 430.9 700.2 193.6 Income tax expense relating to ordinary activities 6 (160.9) (103.9) (57.1) (10.7) Net profit after income tax attributable to the shareholders of Santos Ltd 379.9 327.0 643.1 182.9 Net exchange differences relating to self-sustaining foreign operations 19 (0.2) (4.7) – – Total changes in equity from non-owner related transactions attributable  to the shareholders of Santos Ltd 379.7 322.3 643.1 182.9 Earnings per share (cents) Basic 21 58.6 52.1 Diluted 21 58.5 51.5 The statements of financial performance are to be read in conjunction with th e notes to the financial statements. Annual Report 2004 50