Santos (ASX:STO) share price slumps amid misleading emissions lawsuit

The company is preparing for a world first court case…
The post Santos (ASX:STO) share price slumps amid misleading emissions lawsuit appeared first on The Motley Fool Australia. –

The Santos Ltd (ASX: STO) share price slumped today after news broke that the company is facing a lawsuit.

At market close, Santos shares are down 2.27% to $6.02. It is worth noting that this means the company’s share price is now at a new low for the 2021 calendar year.

What happened?

According to the Financial Review, Santos is being taken to the Federal Court by an activist group over wrongful claims. This relates to the company stating that it produces clean energy and has set itself up to achieve zero emissions in the future.

The Australasian Centre for Corporate Responsibility (ACCR) noted that Santos’ 2020 annual report made false remarks about natural gas as a clean source of fuel. It also disputed that the company has a clear plan to reach net zero emissions by 2040.

Santos aims to expand production capacity at its Barossa gas/LNG project and Dorado oil field development. This will undoubtedly leave the company producing greater emissions, which the ACCR argues.

Previously, Santos said that it will rely on the development of carbon capture and storage (CCS) technology to negate emissions. The ACCR is calling into question whether this is credible.

The group filed the lawsuit on Wednesday stating that the company’s approach to addressing climate change is misleading and deceptive.

Santos is yet to formally respond to the accusations by the ACCR. It did say however it would not be appropriate to comment on matters before the court.

The court case is being recognised as a world first in challenging a company’s target of net zero emissions.

About the Santos share price

Over the past 12 months, Santos shares have moved in circles, up 7% in the period. However, year to date has moved in the opposite direction, down around 3%.

Based on today’s price, Santos commands a market capitalisation of roughly $12.5 billion, with approximately 2 billion shares on issue.

The post Santos (ASX:STO) share price slumps amid misleading emissions lawsuit appeared first on The Motley Fool Australia.

Should you invest $1,000 in Santos right now?

Before you consider Santos, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Santos wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Santos (ASX:STO) share price is now trading on a trailing 2.35% fully-franked dividend yield
5 things to watch on the ASX 200 on Wednesday

Energy sector leading the ASX 200 shares on Tuesday

August hasn’t been a great month for the Santos (ASX:STO) share price
5 things to watch on the ASX 200 on Monday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!