Santos profit slumps as suitors get more time
Oil and gas giant Santos posted half-year profits of more than half a billion dollars, and announced it would give potential buyers of the company until mid-September to decide on a proposed $36 billion acquisition.
Santos’ profit for the half year ending 30 June 2025 was more than $600 million, down 31 per cent on the prior year.
The Adelaide-based oil and gas company said the results were “strong”, with revenue more than $2.5 billion and earnings of about $2 billion for the period.
Production volumes of oil were comparable with the prior year during an “excellent first half”, said Santos – Adelaide’s largest company per the South Australian Business Index.
Managing director and CEO Kevin Gallagher said the firm’s strong free cash flow from operations reflected the strength of the Santos portfolio.
“Today’s results demonstrate the reliability of Santos to generate strong cash flow from operations, deliver major development projects successfully and provide competitive, reliable shareholder returns through disciplined capital allocation,” Gallagher said.
“Our low-cost operating model continues to underpin the resilience of our business in our continual fight against inflation throughout the commodity price cycle.”
It comes as Santos is subject to a non-binding takeover offer from an Abu Dhabi-based oil giant.
A consortium led by a subsidiary of Abu Dhabi National Oil Company and including Abu Dhabi Development Holding Company and Carlyle wants to acquire 100 per cent of Santos for approximately $36.4 billion – well above the company’s current market capitalisation of $25.5 billion.
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Santos today said it has agreed to a second extension of the due diligence process, giving the consortium until 19 September to take a peek at the firm’s books.
Previously, Santos extended the period until 22 August.
“Santos and the XRG Consortium are finalising the Scheme Implementation Agreement, which will include customary protections for Santos shareholders in the event there is a longer than expected period before completion of the Potential Transaction,” Santos said.
“The Consortium has requested an extension of the exclusivity period to conclude due diligence and to allow the Consortium to obtain all necessary approvals to enter into a binding transaction.”
Shares in Santos were up 1.10 per cent to $7.84 per share in morning trade.
