https://www.engineeringnews.co.za

Santos warns of impairments

22nd July 2020

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Oil and gas major Santos has warned of a $700-million to $800-million non-cash impairment charge for the 2020 interim results.

The impairment charge was related to revised oil price assumptions resulting from the effects of the Covid-19 pandemic, the company said.

“Since 2016, Santos has implemented a disciplined operating model that is focused on generating free cash flow through the oil price cycle,” said MD and CEO Kevin Gallagher.

“In response to Covid-19 and the lower oil price environment, Santos announced in March financial measures, including reduction in capital and operating expenditure, and a target 2020 free cash flow breakeven oil price of $25/bl.

“Our disciplined operating model combined with the proactive measures taken to reduce expenditure saw Santos generate more than $430-million in free cash flow in the first half of 2020, despite significantly lower oil prices,” Gallagher said.

Santos will recognize a non-cash impairment of some $640-million to $700-million at its Gladstone liquefied natural gas project, and a further $60-million to $100-million for its exploration assets.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Latest News

SKAO director-general Prof Jessica Dempsey
The SKA Observatory has a new head
2nd June 2026 By: Rebecca Campbell

Showroom

VEGA Controls SA (Pty) Ltd
VEGA Controls SA (Pty) Ltd

For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...

VISIT SHOWROOM 
Iritron
Iritron

Iritron delivers advanced automation, control, and optimisation solutions to the Mining, Minerals & Metals, Consumer Package Goods and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.047 0.992s - 140pq - 2rq
Subscribe Now