“None of the company’s existing drawn or undrawn debt facilities contain any credit rating-related covenant triggers or review events,” Santos said.
Executive chairman Peter Coates reiterated that driving further cost reductions and operating efficiencies remained Santos’ primary focus, and that the company was “well placed to withstand an extended period of low oil prices”
Santos has $4.76 billion in liquidity, comprising cash of $1.13 billion and undrawn bilateral bank debt facilities of $3.6 billion and net debt of $6.65 billion.
In November it raised $3.5 billion via various capital initiatives to significantly reduce its debt, including selling the Kipper gas asset to Mitsui E&P for $520 million, but more sales are now rumoured, although the company has no material debt maturities until 2019.
None of the company’s existing debt facilities contain any credit rating-related covenant triggers or review events, Coates said.
New CEO Kevin Gallagher will be in place next week, at which time Coates will resume his non-executive chairman role.
Gallagher’s main task will be to help Santos adapt to a world where the oil price has fallen more than 40% since November 2015.
Santos will announce its results for calendar 2015 on February 19, and will confirm full-year production of 57.7 million barrels of oil equivalent, within the company’s guidance range of 57-59MMboe.
It will also reveal the extent of its writedowns and impairments.
