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SANTOS LIMITED — Capital/Financing Update 2021
Apr 18, 2021
65872_rns_2021-04-18_817a66dc-8f9f-4fdd-80dd-6086bf04578f.pdf
Capital/Financing Update
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ASX / Media Release
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19 April 2021
Fitch assigns Santos BBB investment grade credit rating
Santos notes the announcement from Fitch Ratings (Fitch) assigning Santos a BBB credit rating with stable outlook.
Having a second investment grade credit rating provides Santos with additional optionality and flexibility in accessing global debt capital markets. Santos is already rated BBB- with stable outlook by S&P Global Ratings.
Fitch noted Santos’ financial profile benefits from the company’s long-term, fixed-price domestic gas contracts which provide portfolio diversification to oil-linked revenues. Fitch also noted that as operator of its unsanctioned growth projects, Santos has some flexibility over timing and expenditure, and has levers to manage leverage including equity sell-downs.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said Santos’ disciplined operating model is focussed on maintaining a strong balance sheet and generating free cash flow through improvements in productivity and maintaining discipline in capital expenditure through the cycle.
“The assigning of a BBB (stable) rating from Fitch is an outcome of the disciplined operating model we have implemented over the past five years combined with our diversified asset portfolio making us more resilient through the oil price cycle,” Mr Gallagher said.
Ends.
This ASX announcement was approved and authorised for release by Kevin Gallagher, Managing Director and Chief Executive Officer.
Media enquiries James Murphy +61 (0) 478 333 974 [email protected]
Investor enquiries
Santos Limited ABN 80 007 550 923 GPO Box 2455, Adelaide SA 5001 T +61 8 8116 5000 F +61 8 8116 5131 www.santos.com
Andrew Nairn +61 8 8116 5314 / +61 (0) 437 166 497 [email protected]
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