STO.AX - Santos Limited

ASX - ASX Delayed Price. Currency in AUD
7.77
+0.02 (+0.26%)
At close: 4:11PM AEDT
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Previous Close7.75
Open7.84
Bid8.56 x 0
Ask7.77 x 0
Day's Range7.75 - 7.90
52 Week Range5.14 - 8.04
Volume4,297,210
Avg. Volume6,420,630
Market Cap16.227B
Beta (3Y Monthly)1.68
PE Ratio (TTM)17.90
EPS (TTM)0.43
Earnings DateFeb 18, 2017 - Feb 22, 2017
Forward Dividend & Yield0.17 (2.25%)
Ex-Dividend Date2019-08-27
1y Target Est5.04
  • Santos Targets Asia LNG Growth With $1.4 Billion Conoco Deal
    Bloomberg

    Santos Targets Asia LNG Growth With $1.4 Billion Conoco Deal

    (Bloomberg) -- Santos Ltd. agreed to buy ConocoPhillips’ northern Australia business for $1.4 billion in a deal that will boost the Adelaide-based oil and gas producer’s position in the growing Asian liquefied natural gas market.The transaction may allow Santos to become the country’s largest independent energy producer and capitalize on a push by Asian consumers, including China, to switch to cleaner burning natural gas away from coal. Conoco is selling its operating interests in the Darwin LNG processing plant and the Bayu-Undan, Barossa and Poseidon gas fields.“The acquisition of these assets fully aligns with Santos’ growth strategy to build on existing infrastructure positions, while advancing our aim to be a leading regional LNG supplier,” Santos Chief Executive Officer Kevin Gallagher said in a statement.Santos has been expanding its position in the Australian oil and gas market having acquired Quadrant Energy for about $2.15 billion in 2018. Its latest deal could help it become Australia’s top independent energy producer: Santos and Conoco’s northern Australia assets produced about 94 million barrels of oil equivalent last year, compared to Woodside Petroleum Ltd.’s 91.4 million.Sanford C. Bernstein & Co. analysts said Conoco’s northern Australia business has a net asset value of about $1.8 billion, citing Rystad Energy AS. The deal has “compelling strategic merit,” RBC energy analyst Ben Wilson said in a note to clients, adding that the price looked reasonable based on RBC’s valuation of the assets at around $1.63 billion.Santos, which posted its biggest share gain this year, said it would fund the acquisition from existing cash and $750 million in new two-year debt. Conoco will receive a further $75 million once Barossa enters final investment decision.Conoco is the second U.S. energy major to announce plans to sell down its interests in Australia after Exxon Mobil Corp. in September said it would start a process to find a buyer for its Bass Strait producing assets off the coast of southeast Australia. Conoco completed the sale of its stake in the Greater Sunrise field to Timor-Leste’s government for $350 million earlier this year, and the Santos deal will free up capital to invest in U.S. shale and return cash to shareholders, two of its priorities in recent years.Conoco is also operator of the Australia Pacific LNG export facility in Queensland, which is not part of the Santos deal.Advanced TalksSantos plans to sell 25% of Conoco’s interest in the Darwin LNG export plant to South Korean firm SK E&S as part of the agreement. The company is also in talks with the facility’s joint venture partners, which include Inpex Corp, Tokyo Gas Co. Ltd., Jera Co. and Italy’s Eni SpA, to sell equity in the Barossa field, which has been earmarked to back-fill the Darwin plant once Bayu-Undan reserves run dry around the end of 2022. Santos will target ownership stakes in both the assets of 40%-50%.“What we’re seeking is alignment,” said Gallagher on a media call. “What we’re looking for is people to be balanced on both sides of the joint venture,” he added, referring to partners having stakes in both Darwin LNG and Barossa.Gallagher said the company is in advanced discussions with LNG buyers for gas off-take from Barossa, including with an existing partner in Darwin LNG, and was looking to contract 60%-80% of gas volumes for the project prior to taking a FID, which is expected in early 2020.As an upstream, brownfield project, Barossa was “low risk” compared to new greenfield LNG projects around the world, “and because of that it’s got a very competitive cost of supply,” said Gallagher. Its location close to Asian markets also meant that shipping costs were less than from other competing projects. “It’s got very robust economics, even in this soft market that we find ourselves in today.”Santos has ambitious plans to grow DLNG capacity by up to 10 million tons per annum, compared to 3.7 mtpa currently. Over the longer term, the potentially huge onshore gas shale reserves in the Beetaloo and McArthur Basins could be processed through DLNG, Gallagher said.Santos’s shares ended 5.7% higher in Sydney trading Monday, having risen as much as 7.7% at one point.Following the SK sell-down, Santos’ holding in Darwin LNG is expected to be 43.4%, with SK at 25%, Inpex at 11.4%, Eni at 11%, Jera at 6.1% and Tokyo Gas at 3.1%. Santos will hold 62.5% in Barossa, with SK owning the remaining 37.5%.(Updates share price in sixth and penultimate paragraphs)\--With assistance from Dan Murtaugh.To contact the reporter on this story: James Thornhill in Sydney at jthornhill3@bloomberg.netTo contact the editors responsible for this story: Ramsey Al-Rikabi at ralrikabi@bloomberg.net, Aaron Clark, Jasmine NgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters

    ConocoPhillips agrees to sell Australian assets to Santos for $1.39 bln

    Energy company ConocoPhillips said on Monday it had agreed to sell most of its Australian assets to rival Santos Ltd for $1.39 billion, with the deal expected to close in the first quarter of 2020. The U.S. company said it was selling its stakes in the Darwin LNG plant, which it built, the Bayu-Undan field which feeds the plant, the Barossa-Caldita field which may supply the LNG plant in future, and its Poseidon gas asset.

  • Reuters

    UPDATE 3-ConocoPhillips quits northern Australia in $1.4 bln sale to Santos

    ConocoPhillips has agreed to sell its northern Australian business to partner Santos Ltd for $1.39 billion, in a deal that will hike the Australian group's output by 25% and boost its position in the global gas market. The deal, which was not unexpected, marks the second major acquisition by Santos in less than a year, following a sharp turnaround in its fortunes under Managing Director Kevin Gallagher, and pushed its shares up 7% in early trade on Monday. ConocoPhillips, which has been focusing on its U.S. shale assets, will quit the Darwin LNG plant, which it opened in 2006, and gas fields off northern Australia, but hold on to its stake in the Australia Pacific LNG plant in Queensland state.

  • ConocoPhillips quits northern Australia in $1.4 billion sale to Santos
    Reuters

    ConocoPhillips quits northern Australia in $1.4 billion sale to Santos

    ConocoPhillips has agreed to sell its northern Australian business to partner Santos Ltd for $1.39 billion, in a deal that will hike the Australian group's output by 25% and boost its position in the global gas market. The deal, which was not unexpected, marks the second major acquisition by Santos in less than a year, following a sharp turnaround in its fortunes under Managing Director Kevin Gallagher, and pushed its shares up 7% in early trade on Monday. ConocoPhillips, which has been focusing on its U.S. shale assets, will quit the Darwin LNG plant, which it opened in 2006, and gas fields off northern Australia, but hold on to its stake in the Australia Pacific LNG plant in Queensland state.

  • OPEC Suffers Another Departure With Ecuador Seeking More Cash
    Bloomberg

    OPEC Suffers Another Departure With Ecuador Seeking More Cash

    (Bloomberg) -- OPEC is getting smaller, again.Ecuador said Tuesday it will quit the Organization of Petroleum Exporting Countries in January, leaving the group with 13 member nations.For OPEC, the departure matters more in symbolism than barrels -- while the South American nation is one of its smallest producers, it’s breaking away to boost oil revenues at a moment when the whole group is suffering from low prices. Less than a year ago, Qatar announced it’s departing, saying it wanted to focus on natural gas output.“Ecuador is being honest about not being able to subject itself to further cuts,” said Schreiner Parker, vice president for Latin America at consultant Rystad Energy, referring to the output curbs OPEC is currently implementing. The country is seeking to boost its revenues from crude as President Lenin Moreno tries to reverse economic policies imposed by his predecessor.“Moreno wants to pursue his own policies, and is more market-friendly than people originally thought,” said Parker.The country has been in breach of its promised production limits every month this year. In 2017, Resources Minister Carlos Perez said it wasn’t going to abide by the quotas, prompting a phone call from Saudi Arabia’s then-energy minister, Khalid al-Falih. Perez said again in February that the nation would produce more than its allocation.“We will continue to produce what we need,” Perez said at the time. “Do not forget that what is decided in OPEC is not mandatory.”Ecuador has left before -- it joined OPEC in 1973 and suspended its membership in 1992. Former President Rafael Correa restarted its membership in 2007. Other countries have left and returned, including Gabon and Indonesia.The exit sends a message to the oil industry that Ecuador is open for business in a region where Venezuela is hobbled by sanctions and economic collapse, Mexico has halted any new bid rounds, and political uncertainty is restraining investments in Argentina. Removing the risk of future OPEC-related constraints on production will make it easier to attract drillers and get financing.“It sends a signal that at the moment their interest is in bringing in a lot of investment, and it may open up new markets,” said John Padilla, managing director of IPD Latin America LLC. “Particularly given the vacuum created by the sanctions in Venezuela and the drop off in Mexican production, it’s an interesting marketing signal.”Oil fell to the lowest in almost two months on Tuesday as the outlook for the global economy darkened, signaling that OPEC will need to cut production further if it wants to balance out the global market. The cartel will need to cut 3 million barrels a day by the end of 2020 to shore up prices, according to estimates from Rystad.OPEC output sank the most in 16 years last month after an attack on Saudi Arabia’s energy facilities. The group and its allies have committed to cutting supply by 1.2 million barrels a day to support prices.OPEC didn’t immediately comment when contacted by Bloomberg.Ecuador is currently developing a 1.6-billion-barrel heavy crude oil field in part of the Yasuni National Park. Protests by indigenous and environmental organizations have stopped efforts to develop the oil industry in the southern half of its Amazon territories, which officials have pushed for opening to tenders as soon as 2020.Perez, a career private-sector oilman, has scrapped plans for a refinery project and reintroduced production-sharing agreements that helped to attract foreign oil investment until the prior president scrapped them. Correa raised taxes on the industry and seized assets, including from oil company Perenco SA, which won an arbitration case last month that will force Ecuador to pay close to $500 million.“Ecuador didn’t fulfill quotas at 100%,” said local oil analyst Fernando Santos, a former chief legal adviser to OPEC and Ecuadorian oil minister. “Occasionally, the government used the argument of quotas to impose limits on private companies’ output.”Ecuador’s reversal of Correa’s brand of 21st Century socialism also includes a renewal of ties with the International Monetary Fund and other multilateral lenders, who have pledged to provide $10.2 billion in loans through 2021.The exit announcement came hours before Moreno announced he was ending fuel subsidies that the cash-strapped government can no longer afford. Under terms of a $4.2 billion IMF loan, Moreno needed to introduce reform legislation for the Fund to continue disbursals.Still, the OPEC news was a surprise to some.“I had no idea this was coming,” said Santos, who only days ago had recommended Ecuador leave OPEC while sitting on a panel in Quito with Perez. “Major companies were always in fear of coming to Ecuador and having the OPEC quotas imposed on them.”\--With assistance from Lucia Kassai.To contact the reporters on this story: Stephan Kueffner in Quito at skueffner1@bloomberg.net;Peter Millard in Rio de Janeiro at pmillard1@bloomberg.netTo contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net, Pratish Narayanan, Joe RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Cell C Seeks Network Deal With MTN in Battle for Survival
    Bloomberg

    Cell C Seeks Network Deal With MTN in Battle for Survival

    (Bloomberg) -- Cell C Pty Ltd. is in advanced talks with MTN Group Ltd. to gain more access to its network as South Africa’s third-biggest mobile-phone company strives to overcome mounting losses and add products such as financial services.An extended roaming deal could be concluded within the next month, Chief Executive Officer Douglas Craigie Stevenson said in an interview. Cell C will gain additional access to MTN’s network in major cities such as Johannesburg and Cape Town.“We are not a tower-owning company, our profits have to come from the services that we are able to offer customers,” said the CEO, who took charge on a permanent basis last month to replace the ousted Jose Dos Santos.Cell C is struggling under 9 billion rand ($596 million) of debt, while full-year losses have ballooned to 8 billion rand from 656 million rand a year earlier. Its management team is in weekly calls with lenders to update them on plans and ensure the company pushes through a re-capitalization by the end of the year.MTN confirmed it’s in discussions with Cell C. “We believe there are still opportunities to pursue, to the benefit of both businesses,” spokeswoman Jacqui O’Sullivan said in an emailed response to questions.Liquidity LifelineA group of local banks have committed to provide temporary liquidity and extended the maturity of 1.2 billion rand of debt that was due to be repaid last month, Cell C said in a presentation on Thursday.South Africa’s telecommunications market is dominated by Johannesburg-based rivals MTN and Vodacom Group Ltd., meaning smaller rivals such as Cell C have struggled. The carrier has come close to collapse on previous occasions, and in 2016 was rescued by a funding plan led by Blue Label Telecoms Ltd.“It’s always been a stressed investment and a company that has not been performance-managed,” said Craigie Stevenson. “Deals were done to fix a funding gap, and did not have thought-out longevity.”Other investments, such in TV-content platform Black, have absorbed cash without generating appropriate returns, the company said.New management is examining all costs and looking to get the most out of Cell C’s assets, Chief Financial Officer Zafar Mahomed said in the same interview. The company wants the bad news out of the way so as to enable the start of a growth plan, he said.Blue Label shares have slumped 45% this year, valuing the group at 2.7 billion rand.(Update with graph and MTN comment in fifth paragraph)To contact the reporter on this story: Loni Prinsloo in Johannesburg at lprinsloo3@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, John Bowker, Thomas PfeifferFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Moody's

    ENN Clean Energy International Investment Ltd -- Moody's: ENN Ecological's weaker 1H 2019 results have no rating impact

    Moody's Investors Service says that ENN Ecological Holdings Co., Ltd's 1H 2019 results were weaker than expected, but have no immediate impact on its Ba2 corporate family rating and the Ba2 rating of the senior unsecured ratings notes issued by ENN Clean Energy International Investment Limited and guaranteed by ENN Ecological. "ENN Ecological's earnings for 1H 2019 were slightly weaker than expected, primarily as a result of volatility in methanol prices," says Chenyi Lu, a Moody's Vice President and Senior Credit Officer. ENN Ecological's debt leverage -- as measured by adjusted debt/EBITDA -- remained unchanged at 4.1x for the 12 months ended 30 June 2019 from 2018, as softer earnings were offset by a decrease in debt.

  • Thomson Reuters StreetEvents

    Edited Transcript of STO.AX earnings conference call or presentation 22-Aug-19 1:00am GMT

    Half Year 2019 Santos Ltd Earnings Presentation

  • Reuters

    Santos cleared to start shale drilling in Australia's Northern Territory

    Santos Ltd has won the first approval from Australia's Northern Territory to resume shale drilling, nearly three years after the territory banned fracking amid concerns about the impact on water and indigenous sites. The ban was lifted last year with recommendations for strict new rules to govern fracking, or hydraulic fracturing, which involves injecting water and chemicals at high pressure to break up rock to release oil or gas. On Wednesday, the Northern Territory government said it had approved Santos's plan to drill in the McArthur Basin after the company revised its wastewater management and spill management plans.

  • Reuters

    UPDATE 1-Australia's Santos posts record production in second quarter

    Australia's No 2 independent gas producer Santos Ltd said on Thursday it had clocked record gas production in the second quarter on stronger output across its Western Australia gas assets. Santos now expects annual sales of 90-97 mmboe and production of 73-77 mmboe. Santos also realized lower prices over the quarter.

  • Thomson Reuters StreetEvents

    Edited Transcript of STO.AX earnings conference call or presentation 21-Feb-19 12:00am GMT

    Full Year 2018 Santos Ltd Earnings Call

  • Reuters

    New PNG leader looks to 'maximise gain' from resources sector

    Papua New Guinea Prime Minister James Marape signalled his intention on Thursday to toughen laws on natural resources so as to benefit the nation in his maiden speech to parliament after being elected leader. "I have every right to tweak and turn resource laws for my country, then it will empower my citizens as well," he said to cheers and applause at Parliament House in Port Moresby, the capital. "We will look into maximising gain from what God has given this country from our natural resources.

  • Reuters

    Voting in PNG parliament shows Marape has support to be new PM

    Voting in Papua New Guinea's parliament on Thursday showed former finance minister James Marape had enough support to replace Peter O'Neill as prime minister after weeks of political turmoil over the handling of a gas development deal. Speaker of Parliament Job Pomat was yet to tally the votes but lawmakers showed their allegiances by moving over to sit on Marape's side of the house. Marape quit as finance minister in April over a gas deal with France's Total SA he called too generous to the oil major.

  • Reuters

    Papua New Guinea PM clings on but government defeated in parliament

    SYDNEY/BRISBANE, May 28 (Reuters) - The government of Papua New Guinea appeared to be in danger on Tuesday, after opponents of Prime Minister Peter O'Neill convincingly won a vote in parliament that prepares the way for his removal. Government benches were noticeably bare at the fiery sitting in the capital, Port Moresby, parliament's first since a string of senior defections cost O'Neill his majority last week. After a brief suspension amid uproar as tempers frayed over a blocked move to replace the speaker of the house, O'Neill's rivals won a vote to remove his allies from a panel that vets no-confidence motions, seen as a precursor to his ouster.

  • Reuters

    PNG opposition says new defections mean it has enough support to oust PM

    Opponents of Papua New Guinea (PNG) Prime Minister Peter O'Neill said on Friday they had mustered enough support in parliament to oust him over a range of grievances including a gas deal with France's Total , which critics have questioned. Political instability is something of a fixture in the resource-rich but poverty-stricken South Pacific nation and O'Neill, who has been leader since 2011, has seen off previous attempts to topple him. "It'll only be a formality," defecting Commerce Minister Wera Mori told Reuters, referring to what he said would be O'Neill's removal after parliament reconvenes on Tuesday.