Santos is in a trading halt -- capital raising on the way

Aerial view of Santos GLNG’s LNG plant under construction at Curtis Island, Gladstone

Santos has gone into a trading halt.

The energy company is about to announce a capital raising, part of a plan to make it more resilient to falling oil prices.

Some reports said Santos would raise as much as $3 billion through a right issue.

Last month Santos rejected as opportunistic a $7.14 billion takeover bid from Scepter Partners, a Middle East-based private investment company.

In August, Santos CEO David Knox announced he was stepping down after the company’s share price kept falling. The board of directors also launched a full strategic review.

The company’s net profit dropped 82% to $37 million for the half year as falling global oil prices sucked revenue from the business.

The oil and gas producer managed to get just $US60 per barrel in the six months to June compared to $US115 in the previous first half, a 47% fall.

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