新奥股份:Santos发布持续股息政策(英文)2018-06-29
ASX / Media Release
28 June 2018
Santos announces sustainable dividend policy
In line with Santos’ stated purpose to provide sustainable returns to our shareholders, the
Board has approved a new Dividend Policy.
Santos will look to pay ordinary dividends that are sustainable through the oil price cycle and
will target a range of 10% to 30% payout of free cash flow1 generated per annum.
Furthermore, given the cyclical nature of the industry, the Board will also consider additional
returns to shareholders above the ordinary dividend when business conditions permit.
Santos’ strategy has been to establish a low cost operating model that is designed to deliver
strong cash flows through the oil price cycle.
Since 2016, Santos has successfully executed the Transform phase of the strategy to simplify
the company to focus on five core long-life natural gas assets, reduce costs and increase
efficiencies to become Australia’s lowest cost onshore operator, and position the balance
sheet for growth by significantly reducing net debt. During this period, dividends remained
suspended as the company prioritised debt repayment.
Santos is on track to achieve its net debt reduction target in the second half of 2018, more
than a year ahead of schedule and now has a significantly stronger balance sheet to support
the company’s growth strategy. This positions the company to return to sustainable dividend
payments to shareholders.
In determining the appropriate dividend payment, the Santos Board will consider the
company’s growth profile, cash flow and funding requirements, balance sheet strength,
capital structure, and franking credit balance. The declaration and amount of any dividend
payment remains at the discretion of the Board.
Should market conditions remain supportive and the company continues to make good
progress to its debt reduction target ahead of plan, the Board will look to restore dividends
to shareholders when it considers the 2018 half-year financial results in August.
Ends.
1
Free cash flow is operating cash flow less investing cash flow (including all sustaining capital expenditure, exploration spend
and interest payments). The Board will have the discretion to adjust free cash flow for individually material items, including
major growth spend (for example, capital expenditure associated with the proposed Barossa development and PNG LNG
expansion projects), and asset acquisitions and disposals.
Media enquiries Investor enquiries Santos Limited ABN 80 007 550 923
Joanna Vaughan Andrew Nairn GPO Box 2455, Adelaide SA 5001
+61 2 9276 1134 / +61 (0) 419 111 779 +61 8 8116 5314 / +61 (0) 437 166 497 T +61 8 8116 5000 F +61 8 8116 5131
joanna.vaughan@santos.com andrew.nairn@santos.com www.santos.com
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