Santos scraps capital raise, reviews spending plans
PERTH (miningweekly.com) – Oil and gas major Santos on Thursday told shareholders that it would look to cut back on capital and operating expenditure during 2015, while also scrapping a planned capital raise.
Santos in November flagged the potential for a European hybrid issue, but on Thursday said that considering the current market conditions following Opec’s announcement that it would maintain existing production levels, the European hybrid issue has now been deferred.
CFO Andrew Seaton said the potential hybrid issuance was always about proactive capital management, adding that the company had the flexibility in the timing of the issue.
“Santos has a robust funding position, including around A$2-billion in available liquidity,” Seaton told shareholders, adding that the company had no current intentions to undertake an equity raising.
However, he noted that given the current oil price environment, it was "prudent" for Santos to review its spending plans for 2015, with the company expected to ‘significantly’ reduce its capital and operating expenditure.
For the full 2014, Santos would spend some $3.5-billion.
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