Santos stops rumours of an equity raising

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

Santos, whose shares lost almost 8% to $5.99 on Friday, today moved to stop rumours the energy company is about to launch an equity raising.

The company says it has no intention to undertake an equity raising. Santos already has more than $2 billion in cash and debt facilities available.

“Santos continues to take positive steps to strengthen the company’s operating position in the lower oil price environment,” the company says.

The company cut capital spending in the first six months of the year by half and unit production costs are 11% lower.

Production is up 13% and continued growth is expected over the next few years. The GLNG project in Queensland is on track to produce its first LNG around the end of the third quarter.

However, June quarter revenue was below expectations, down 19% to $786 million.

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