Santos (STO) shares ended with a small gain yesterday after the oil and gas group strongly rejected market speculation that it would raise money from investors.
Market gossip in the past few days was that Santos would need more capital. By last Friday the gossip had hit such a high level that Santos shares fell 9%.
Yesterday it told the ASX it had “no current intention" of raising equity.
"Santos retains ample liquidity, with over $2 billion in cash and undrawn facilities currently available," the company said in a statement to the ASX.
The 9% slide last Friday saw its shares hit a six year low of $5.99.
The market closed at $5.98 yesterday, another low and clearly investors remain wary. The past year has seen Santos’s shares lose $8 billion in value.
STO 1Y – Santos hoses down need to raise equity
Santos reports its interim June 30 results this Friday and the market talk has linked that to a possible equity raising.
"Santos continues to take positive steps to strengthen the company’s operating position in the lower oil price environment. First half capital expenditure was more than 50 per cent below 2014 levels and unit production costs for the first half were 11 per cent lower.
"The underlying performance of the business remains strong. Production was up 13 per cent in the first half and continued growth is expected over the new few years, coinciding with the ramp up of GLNG."
"The company’s $25 billion Gladstone-based LNG project is expected to finally start producing gas in the next few months.
"The GLNG project has made significant progress and remains on track for first LNG around the end of the third quarter. All upstream facilities are fully operational and good progress is bring made on commissioning the LNG plant on Curtis Island," the company said.
