Santos Shares Are Tanking After Its Capital Raising Got Hit By Delays

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Santos shares fell sharply after the energy producer announced a delay in a Euro 500 million ($733.26 million) capital raising.

The hybrid raising in Europe, a mix of debt and equity, has been put aside following a slide in the price of oil to below $70 per barrel

Santos said the oil market has experienced considerable volatility following OPEC’s announcement to maintain existing production levels.

“In response to this marked change in market conditions, Santos has decided to defer any hybrid issuance until market conditions are more conducive,” said Santos chief financial officer Andrew Seaton.

“Santos has a robust existing funding position, including approximately $2 billion in available liquidity.”

Seaton also foreshadowed significant spending cuts, saying the fall in oil prices made it “prudent” for the company to review plans for 2015.

Santos shares are down more than 8% to $8.33. They’ve lost 28% since November 27.

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