Insights

The Santos (ASX:STO) share price dips on stable credit rating

The Santos (ASX: STO) share price dipped today despite the company providing an update on its credit rating. Here are the details.
The post The Santos (ASX:STO) share price dips on stable credit rating appeared first on The Motley Fool Australia. –

energy asx share price flat represented by worker in hi vis gear shrugging

The Santos Ltd (ASX: STO) share price slipped lower today despite the gas company providing an update on its credit rating. The Santos share price finished the day slightly in the red, down 1.3% to $7.23.

Let’s take a closer look at what Santos announced to the ASX market.

What did Santos announce?

The Santos share price ended the day mostly unscathed from the wider ASX market plunge that took hold today.

In its release, Santos advised that S&P Global Ratings (S&P) reaffirmed its BBB-credit rating with a stable outlook.

The report stated that S&P recognised Santos’ successful strategy in improving its portfolio resilience and diversifying its assets. This included the company determination in lowering unit production costs across its different class of assets.

In addition, the broker said that Santos increased its exposure to fixed-price gas volumes within the Australian market.

Santos took this measure to protect its balance sheet and shore up positive cash flows to fund its Barossa Project. The ratings agency expects the company to maintain its well-controlled operating model over the next 12 to 24 months.

Head of management comments

Santos managing director and CEO Kevin Gallagher commented on the company’s progress in overcoming volatile trading conditions. He said:

The confirmation from S&P of Santos’ BBB- (stable) rating 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.

About the Santos share price

In the past 12 months, the Santos share price fared relatively well despite being hit by COVID-19 woes. The company’s shares are up just above 3% from this time last year.

In the March 2020 market sell-off, its shares hit a multi-year low of $2.73 before rebounding in the later months.

At the current share price, Santos commands a market capitalisation of more than $15.1 billion.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras 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.

The post The Santos (ASX:STO) share price dips on stable credit rating appeared first on The Motley Fool Australia.

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!