Santos Remakes Money Administration Framework Will Obtain Again Up to $250M in Shares

By Rhiannon Hoyle

Santos Ltd. declared an on-market place share buyback of up to $250 million as it laid out a new cash administration framework it explained would support the vitality organization greater balance expense and shareholder returns.

Santos on Wednesday reported the initial on-market place buyback, which is anticipated to begin in Could, is element of a approach “to maintain a disciplined, small-expense running design that is intended to provide powerful funds flows via the oil-rate cycle.”

Beneath the new money management framework, Santos intends to spend 10-30% of free income move as dividends at an ordinary Brent oil price up to $65 a barrel. Earlier mentioned that oil value, it intends to use at minimum 40% of incremental free funds stream for more dividends or share buybacks, the corporation mentioned.

Santos also explained it would concentrate on a gearing variety of 15-25%.

“The new money management framework seeks to retain an proper money structure that enables Santos to stability the allocation of money in between expense in the company, the enhancement of strategic progress and clear-vitality jobs, and the provision of sustainable returns to shareholders at greater commodity costs,” it stated.

Main Government Kevin Gallagher claimed the $250-million buyback also reflected the check out that the “present-day share price tag undervalues the company.”

Generate to Rhiannon Hoyle at [email protected]