Knox to stand down as Santos flags review
Santos CEO David Knox will leave the role as soon as a successor is appointed, the Adelaide-headquartered oil and gas giant announced today.
After a horror year for Santos due to plummeting oil prices, the company will also conduct a “full strategic review to examine all options to restore and maximise shareholder value”.
The company did not rule out selling assets, revealing it would be talking with parties who had approached it about “various assets and other strategic initiatives”.
Santor chairman Peter Coates will take the role of executive chairman with responsibility for the review.
Knox, who has been in the role for seven years, has agreed with the board that it is now time for a leadership succession, Coates said today.
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The moves come as Santos announced its half-year profit has tumbled 82 per cent.
Net profit for the six months to June 30 fell to $37 million from $206 million for the prior corresponding period due to falling oil prices.
The company reacted to a 15 per cent decline in sales revenue by slashing capital expenditure by more than half and is considering asset divestments “provided fair long-term value can be realised”.
The interim dividend was flat at 15 cents per share fully franked.
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In a statement released this morning, Coates paid tribute to Knox for his “leadership in the transformation of Santos from a domestic market focused business to be positioned as a key energy partner to the Asian region”.
Until Knox stepped down, the CEO would remain responsible for company operations and projects.
However, the board was determined to address the impact of the oil price slump on Santos’s share price “relative to other oil and gas companies”.
“Given that we have announced a succession process for David, I will lead the process and can assure shareholders that we will be acting with the greatest possible speed to determine the best course of action, but we will not be taking any short cuts,” Coates said.
“Santos has built and secured some high quality assets and resource positions. We need to protect that value while also achieving far better market recognition of it than shareholders are seeing today.
“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.
“No option will be ruled out from consideration, but neither is any particular option a preferred course at this time.”
– with AAP
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