Santos share price plunge prompts speculation

Santos' GLNG project in Queensland's Surat and Bowen Basins

Santos' GLNG project in Queensland's Surat and Bowen Basins

Santos has hit back at suggestions the firm will launch an equity raising in the wake of a steep fall in the company’s share price.

Santos shares fell 9 per cent on Friday to $5.99 - the firm’s lowest price in more than a decade.

The fall came after yet another hit to crude oil prices, which declined another 2.1 per cent to $US42 late last week.

In a statement issued to the ASX today in response to media reports suggesting that the company would launch an equity raising to reinvigorate the company’s stock, Santos said it has no current intention to call on shareholders.

“Santos retains ample liquidity, with over $2 billion in cash and undrawn debt facilities currently available,” it insisted.

“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.”

Santos also noted that its GLNG project is on track for first LNG around the end of the third quarter, all upstream facilities are fully operational and progress is being made on commissioning the LNG plant on Curtis Island.

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