Past year: ▲ 35%(6.17 – 8.62 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
26 Mar 2021production update▲ Good
The Ningaloo Vision FPSO restarted after maintenance in Singapore, ramping toward 10,000 barrels per day. Van Gogh Infill Phase Two, a three-well campaign targeting about 10 million barrels gross, starts in 2Q 2021 with first oil in 4Q 2021. Santos holds 52.5%.
24 Mar 2021contract award▲ GoodMajor
Santos awarded the Barossa FPSO services contract to BW Offshore, subject to FID, cutting capital expenditure by about US$1bn on the roughly US$3.6bn project. Santos calls it the final milestone before FID, expected within weeks, with first gas targeted 1H 2025.
19 Mar 2021agm notice● Neutral
Requisitioning shareholders withdrew resolution 6(c) from the 15 April 2021 AGM. The board continues to recommend voting against 6(a) and 6(b).
16 Mar 2021agm notice● Neutral
Santos will give shareholders a non-binding advisory vote on its Climate Change Report at the 2022 AGM, after consultation. The board still recommends voting against requisitioned constitution-change resolutions 6(a), 6(b) and 6(c) at the 15 April 2021 AGM.
8 Mar 2021director officer appointment● NeutralMajor
ENN sold about 107.1m shares (5.14%) at A$7.33, cutting its stake to 9.97%, still the largest single holder. The 2017 relationship agreement lapses, so ENN's nominee director Eugene Shi resigns, ending ENN's board seat.
26 Feb 2021other▲ Good
S&P reaffirmed Santos's BBB- investment grade rating with stable outlook. The outlook reflects S&P's view that Santos can fund growth, including Barossa, over the next 12-24 months while sustaining improved credit metrics.
18 Feb 2021other● Neutral
Annual Corporate Governance Statement for 2020, describing board and committee framework and policies. Highlights include a conflicts of interest protocol and a first Modern Slavery Statement. Administrative; no new business information.
18 Feb 2021annual report▼ Bad
Appendix 4E for 2020: revenue fell 16% to US$3,387m and net loss attributable was US$357m. Dividends were 2.1c interim and 5.0c final, both fully franked.
18 Feb 2021other● Neutral
Appendix 4G, the compliance checklist pointing to Santos's corporate governance disclosures for 2020. Administrative filing with no business substance.
18 Feb 2021annual report● Neutral
The 2020 Shareholder Review summarises the annual report: 89.0 mmboe production, US$740m free cash flow, 7.1c dividends. It restates the aim of 120 mmboe annual production and net zero by 2040. Repeats known facts.
18 Feb 2021other● Neutral
Santos published its fourth annual Climate Change Report, restating net zero by 2040 and a 26-30% cut in scope 1 and 2 emissions by 2030. Moomba CCS is ready for FID at 1.7 mtpa storage. Largely repeats the December targets.
18 Feb 2021annual report● NeutralMajor
2020 results: record 89 mmboe production, free cash flow US$740m, underlying profit US$287m, net loss US$357m after impairments. Final dividend 5.0c, total 7.1c (20% of free cash flow). SK E&S sell-down is now binding subject only to Barossa FID; JERA SPA still being progressed.
18 Feb 2021annual report● Neutral
The 2020 Annual Report repeats the full-year results: US$740m free cash flow, US$357m net loss, 7.1c dividends. It cites a free cash flow breakeven oil price of US$24 per barrel before hedging, US$17 after. No new announcement-level information in the extract.
15 Feb 2021resource reserve update● NeutralMajor
Santos reported 2P reserves of 933 mmboe at end-2020, up 34 mmboe before production; three-year replacement was 138%. Reindeer (WA) and PNG Juha downgrades trigger an expected US$98m goodwill impairment, plus US$41m other charges, on top of the earlier US$756m.
11 Feb 2021agm notice● Neutral
A further requisition, from holders of under 0.01% of shares, proposes a constitution change requiring an annual climate report and shareholder vote. Santos says this is unnecessary since it already publishes a TCFD-based report. Resolutions will appear in the March notice of meeting.
3 Feb 2021agm notice● Neutral
Santos received requisitioned resolutions for the 15 April 2021 AGM from holders of under 0.01% of shares: allow advisory member votes, and report on managing down oil and gas in line with Paris goals. The board rejects closing operations, pointing to its 2040 net-zero pathway.
21 Jan 2021quarterly activities report▲ Good
2020 production was a record 89 mmboe (up 18%) at the top of upgraded guidance; Q4 was 25.4 mmboe. Full-year revenue was US$3.4bn, free cash flow over US$725m and net debt US$3.7bn. Barossa FID remains on track for 1H 2021.
5 Jan 2021drilling scheduled▲ GoodMajor
Santos took FID on the US$235m Bayu-Undan Phase 3C infill program: three wells adding over 20 mmboe gross reserves, first spud 2Q 2021 and first production 3Q 2021. SK E&S sell-down has JV and Timor-Leste consent and completes at Barossa FID in 1H 2021.
31 Dec 2020director officer appointment● Neutral
Yujiang (Eugene) Shi joins the board as ENN's nominee, replacing Yu Guan who retires after resigning from ENN. Shi previously held the seat from June 2017 to May 2019. ENN's nomination right applies while it holds 15% or more.
7 Dec 2020material agreement▲ GoodMajor
Santos signed a binding 10-year SPA to sell 1.5 mtpa of Barossa LNG to Mitsubishi's Diamond Gas International at JKM-linked prices, over 80% of its expected equity volume. Barossa FID is now targeted for the first half of 2021.
1 Dec 2020investor presentation▲ GoodMajor
At its Investor Day, Santos raised 2020 production guidance to 87-89 mmboe (from 83-88) and acquisition synergies to US$90-105m a year. It set net-zero by 2040 and approved Darwin LNG tolling for Barossa gas, a step toward FID.
26 Nov 2020joint venture update● Neutral
Red Sky Energy (20% partner) reports Santos plans a new Yarrow gas well in the second half of 2021 in the Innamincka Dome, Cooper Basin. Santos holds 80% and operates; Yarrow's 2C contingent resource is 18 Bcf. Minor, partner-sourced update.
24 Nov 2020regulatory community update▲ GoodMajor
Federal Environment Minister approved the Narrabri Gas Project under the EPBC Act, completing the federal step after the NSW approval. Santos will run a 12-18 month appraisal program before a Final Investment Decision on the next phase.
5 Nov 2020debt financing▲ GoodMajor
Santos signed a new US$750m syndicated bank loan, about three times oversubscribed, maturing January 2026. It refinances the two-year US$750m facility raised for the ConocoPhillips deal, leaving no material maturities until 2024.
4 Nov 2020contract award▲ Good
Santos signed a gas sales agreement with Kleenheat (Wesfarmers group) for more than 16 PJ from Varanus Island over three years from 2021. It extends Santos's WA domestic gas contracting, following the smaller Gold Fields deal in June.
22 Oct 2020quarterly activities report▲ Good
Q3 2020 production of 25.1 mmboe was a record, up 22%; revenue US$797m and free cash flow US$143m. Net debt US$3,677m, gearing 33.6%. Barossa is progressing toward FID-ready status by year-end, subject to conditions.
30 Sept 2020regulatory community update▲ GoodMajor
NSW Independent Planning Commission approved the Narrabri Gas Project with conditions, which Santos accepts, resolving the Q3 decision awaited. Federal EPBC approval is still needed; workovers start now, followed by a 12-18 month appraisal drilling program.
30 Sept 2020other● Neutral
ASX paused trading in Santos shares pending a further announcement. No reason is given in the notice itself.
20 Aug 2020half year report▼ BadMajor
H1 2020 statutory loss of US$289m (vs US$388m profit) after the previously flagged impairment; underlying profit fell 48% to US$212m on revenue down 16% to US$1,668m. Interim dividend 2.1 US cents, down 65%.
20 Aug 2020half year report● Neutral
Media release for the half-year result: free cash flow US$431m, underlying profit US$212m, net loss US$289m, dividend 2.1c at the low end of the payout range. Integration synergy target moved to the upper end of US$50-75m; Dorado FEED-entry decision now second half 2020.
