Santos’ value up by AU$6bil

SANTOS’ value has increased by AU$6 billion (about K14.8 billion) since its merger with Oil Search, says managing director and chief executive officer Kevin Gallagher.
The company also made a K3.3 billion profit for the 2021 financial year that saw the company deliver the highest revenue, free cash flow and underlying profit in its history.
With the balance sheet remaining strong, the board was able to declare a final dividend of US 8.5 cents per share – a 70 per cent increase on last years’ final dividend.
“We have increased the company’s value by more than four times over that period to A$27 billion (about K68.5bil),” Gallagher said.
“And since our merger with Oil Search just a few months ago our value has increased by around A$6 billion (about K15.2bil).
“This year alone, our share price has risen from A$6.31 (about K16) to A$8.01 (about K20.36). Back on Feb 1, 2016, it was just A$2.92 (about K7.42).
“Our free cash flow break even oil price in 2021 was AU$21 (about K53) per barrel compared to A$48 (about K121.80) in early 2016.
“This performance reflects the transformation journey we have been on since 2016 – and which remains ongoing – as we pursue continuous improvement and exceptional results,” he said. “The completion of our merger with Oil Search in December 2021 has created a business we can be very proud of.”
Chairman Keith Spence said the merger created a company of size and scale, with a unique, diversified portfolio of long-life, low-cost oil and gas assets.
“Santos is now a top-20 ASX-listed company and in the top 20 companies in our sector globally.
“The merger positions the business to self-fund our strategic growth and our clean energy and clean fuels projects as the world decarbonises.” He said in February, Santos joined the Government and P’nyang project participants in executing a gas agreement that provides a clear framework for P’nyang’s future development.