Santos CEO David Knox is stepping down as the oil and gas producer’s share price falls further after the latest results showing commodity prices sucking revenue from the company.
The board of directors also launched a full strategic review in light of continuing pressure on the share price. The price has fallen from $15.32 a year ago to $5.33 today.
Santos, whose revenue is shrinking with falling commodity prices, has been approached recently by other companies looking to acquire assets.
The company today announced an 82% drop in half year net profit to $37 million. The result was below analyst forecasts. Most had been expecting around $60 million.
Chairman Peter Coates will become executive chairman and take responsibility for the review with the assistance of Deutsche Bank and Lazard.
“The board is determined to address the impact of the fall in global oil prices on the company’s share price relative to other oil and gas companies,” says Coates.
“We are undertaking a thorough strategic review of all options to restore and maximise shareholder value in the face of the continuing pressures on oil prices, globally.
“We will be talking with the parties who have approached us to date with interest in various assets and other strategic initiatives and with this announcement there may well be new expressions of interest received.”
Knox will depart, after seven years, once a successor is found.