for the year ended 31 December 2004 NOTES TO THE FINANCIAL STA TEMENTS Consolidated Santos Ltd 2004 2003 2004 2003 2. Revenue from Ordinary Activities $million $million $million $million Product sales: Gas and ethane 680.1 720.8 294.6 306.1 Crude oil 501.8 477.7 198.5 175.7 Condensate and naphtha 228.5 150.0 44.2 63.8 Liquefied petroleum gas 90.5 116.5 31.5 70.7 1,500.9 1,465.0 568.8 616.3 Other: Overriding royalties 14.3 13.3 18.7 18.4 Equipment rentals, pipeline tariffs and other 19.0 7.6 6.6 3.9 Interest revenue: Controlled entities – – 42.8 35.5 Other entities 3.5 2.5 2.3 1.4 Dividends from other entities – 0.4 – 0.4 Dividends from controlled entities – – 251.7 – Insurance recovery 116.6 – 73.8 – Proceeds from sale of non-current assets 98.9 108.0 462.1 62.7 Proceeds from sale of controlled entities – 22.6 – 3.9 252.3 154.4 858.0 126.2 3. Expenses from Ordinary Activities Cost of sales: Production costs 308.5 263.6 113.8 95.2 Pipeline tariffs and tolls 32.6 33.3 7.4 3.2 Royalty, excise and PRRT 154.0 131.4 73.1 41.6 Depreciation, depletion and amortisation 536.4 528.8 209.2 194.7 Third party gas purchases 14.9 5.4 12.2 12.4 1,046.4 962.5 415.7 347.1 Decrease/(increase) in product stock 3.4 11.9 (1.2) 9.5 1,049.8 974.4 414.5 356.6 Other: Selling, general and administrative expenses: Operating expenses 57.1 41.6 50.3 34.1 Depreciation and amortisation 3.3 2.8 1.7 1.1 Write-down of investment in controlled entities – – – 40.8 Write-down of investment in listed shares – 4.4 – 4.4 60.4 48.8 52.0 80.4 Book value of non-current assets sold 46.5 52.9 164.4 16.9 Book value of controlled entities sold – 18.1 – 4.9 Write-down of exploration and development expenditure 22.1 59.7 4.6 6.1 129.0 179.5 221.0 108.3 4. Borrowing Costs Interest expense: Controlled entities – – 90.7 83.6 Other entities 65.7 57.2 0.4 0.4 Less interest capitalised (32.1) (22.6) – – 33.6 34.6 91.1 84.0 Annual Report 2004 56