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Highlights
Santos’ latest boost to buyback comes in addition to the US$350 million announced in August 2022.
Santos also announced a more simplified capital management framework.
The company aims to annually return its shareholders a minimum of 40 per cent of its free cashflow.
Australia’s independent gas producer Santos Ltd (ASX:STO) on Wednesday announced an increase of US$350 million to its on-market share buyback, buoyed by rise in commodity prices. The latest boost comes in addition to the US$350 million announced in August 2022. With this, the total on-market share buyback amount for this year stands at US$700 million. The fresh share buyback is expected to begin this month.
Santos also announced a more simplified capital management framework. The company aims to annually return its shareholders a minimum of 40 per cent of its free cashflow.
"Once the Barossa and Pikka Phase 1 projects commence production, the board’s intention is to consider increasing shareholder returns to at least 50 per cent of free cash flow generated per annum," Santos Chair Keith Spence said.
Santos’ share price movement
Santos’ shares have produced a return of over 9% in the past year. On a year-to-date basis, the share price of Australia’s second largest gas producer has risen over 8%. On the other hand, the share price has fallen over 10% in the past month. At 12:06 AM (AEDT), the share price was AU$7.18, down 0.97% or 0.070 points.
Meanwhile, Santos recently lost its bid to restart drilling at a multimillion-dollar gas project off the Tiwi Islands. The full Federal Court last Friday dismissed the company's appeal, upholding an earlier decision that the offshore gas regulator should not have approved drilling at the Barossa gas field, 265 km north-west of Darwin.
Tiwi Islander and Munupi man Dennis Tipakalippa in June launched the legal action against Santos, claiming he was not consulted over the company's environmental plan.