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Santos Limited (AU:STO)
:STO

Santos Limited (STO) AI Stock Analysis

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AU

Santos Limited

(OTC:STO)

Rating:63Neutral
Price Target:
AU$6.50
▼(-0.61%Downside)
Santos Limited's overall stock score reflects a strong financial foundation with robust profitability and a solid equity base. However, declining revenues and weakened cash flow generation are notable concerns that require strategic focus. The technical analysis indicates a balanced momentum without a clear trend, while the valuation metrics suggest the stock is attractively priced with a strong dividend yield. These factors combine to give Santos Limited a moderate overall score, with significant potential for improvement should revenue growth and cash flow management be effectively addressed.

Santos Limited (STO) vs. iShares MSCI Australia ETF (EWA)

Santos Limited Business Overview & Revenue Model

Company DescriptionSantos Limited explores for, develops, produces, transports, and markets hydrocarbons for homes and businesses in Australia and the Asia Pacific. Its five principal assets are located in the Cooper Basin, Queensland and NSW, Papua New Guinea, Northern Australia and Timor-Leste, and Western Australia. The company also holds an asset in Alaska; and engages in the development of carbon capture and storage technologies. In addition, it produces natural gas, liquefied petroleum gas, ethane, methane, coal seam gas, liquefied natural gas, shale gas, and condensate, as well as oil. The company's proved plus probable reserves include 1676 million barrels of oil equivalent. Santos Limited was incorporated in 1954 and is headquartered in Adelaide, Australia.
How the Company Makes MoneySantos Limited generates revenue primarily through the exploration, production, and sale of natural gas and oil. The company's key revenue streams include the sale of LNG, domestic gas, and other gas liquids. Santos has significant investments in LNG projects, such as the PNG LNG project in Papua New Guinea and the GLNG project in Queensland, Australia, which contribute substantially to its earnings. Additionally, Santos engages in strategic partnerships and joint ventures with other major energy companies, which enhance its production capabilities and market reach, further boosting its revenue. The company's earnings are also influenced by global oil and gas prices, production volumes, and operational efficiencies.

Santos Limited Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
8.39B5.40B5.89B7.79B4.64B3.39B
Gross Profit
4.44B3.70B2.22B5.64B1.59B1.76B
EBIT
3.20B0.001.98B3.37B1.51B24.00M
EBITDA
4.99B3.67B3.97B4.97B2.65B1.04B
Net Income Common Stockholders
2.00B1.22B1.42B2.11B476.94M-357.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.46B1.86B2.28B2.46B2.97B1.32B
Total Assets
28.86B29.63B29.76B28.86B31.02B17.66B
Total Debt
5.52B6.69B6.16B5.52B8.02B5.00B
Net Debt
3.17B4.86B4.28B3.17B5.06B3.68B
Total Liabilities
14.01B14.10B14.48B14.01B17.45B10.43B
Stockholders Equity
14.84B15.54B15.28B14.84B13.57B7.23B
Cash FlowFree Cash Flow
2.18B449.00M889.00M2.15B1.07B1.29B
Operating Cash Flow
4.00B0.003.26B3.86B2.14B1.48B
Investing Cash Flow
724.50M-2.69B-2.90B-1.67B-76.29M-1.46B
Financing Cash Flow
-949.50M-206.00M-860.00M-3.40B-464.50M246.00M

Santos Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.54
Price Trends
50DMA
6.19
Positive
100DMA
6.41
Positive
200DMA
6.56
Negative
Market Momentum
MACD
0.12
Negative
RSI
58.36
Neutral
STOCH
60.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:STO, the sentiment is Positive. The current price of 6.54 is above the 20-day moving average (MA) of 6.44, above the 50-day MA of 6.19, and below the 200-day MA of 6.56, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 58.36 is Neutral, neither overbought nor oversold. The STOCH value of 60.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:STO.

Santos Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
AUORG
66
Neutral
$18.37B12.9714.75%5.49%8.09%-13.99%
AUSTO
63
Neutral
AU$21.35B11.427.94%5.40%-7.99%-12.27%
57
Neutral
$7.16B3.10-4.49%5.66%0.82%-49.15%
AUBPT
56
Neutral
$3.09B33.172.70%3.76%6.43%
AUCVN
47
Neutral
$178.91M18.423.89%
AUCTP
46
Neutral
AU$44.72M600.000.25%-15.16%-99.57%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:STO
Santos Limited
6.54
-0.63
-8.85%
AU:BPT
Beach Energy
1.34
-0.19
-12.19%
AU:ORG
Origin Energy Limited
10.58
0.80
8.14%
AU:CVN
Carnarvon Energy Limited
0.11
-0.09
-46.15%
AU:CTP
Central Petroleum Limited
0.06
0.00
0.00%

Santos Limited Corporate Events

Santos Limited Issues Share Acquisition Rights to Employees
May 9, 2025

Santos Limited announced the issuance of 3,428,591 share acquisition rights as part of an employee incentive scheme. This move is likely to enhance employee engagement and align their interests with the company’s growth objectives, potentially strengthening Santos’ position in the competitive energy market.

Santos Limited Announces Cessation of Share Acquisition Rights
May 9, 2025

Santos Limited announced the cessation of 7,639 share acquisition rights under the ASX security code STOAZ due to the lapse of conditional rights, as the conditions were not met or became incapable of being satisfied. This announcement may impact the company’s capital structure and could have implications for stakeholders, highlighting the importance of meeting conditional requirements in securities management.

Santos Limited Issues and Converts Unquoted Equity Securities
May 9, 2025

Santos Limited has announced the issuance and conversion of unquoted equity securities, specifically 466 ordinary fully paid shares, as of April 28, 2025. This move is part of the company’s ongoing financial strategies and may impact its market positioning by potentially increasing shareholder value and enhancing capital structure.

Santos Limited Sets Ambitious Carbon Storage Target
May 6, 2025

Santos Limited has announced an ambitious carbon storage target, aiming to enhance its operations in carbon storage projects. This target, while not a forecast, represents a significant growth goal for the company and requires extensive collaboration with stakeholders, including customers, governments, and regulators. The projects to achieve this target are in the early planning stages, and their commercial and economic viability is yet to be confirmed.

Santos Limited Announces Change in Director’s Interest
May 5, 2025

Santos Limited announced a change in the director’s interest, specifically regarding Kevin Thomas Gallagher, who has acquired an additional 566,343 share acquisition rights. This change, effective from May 2, 2025, was a result of the Long-Term Incentive Grant approved by shareholders, indicating a strategic move to align the director’s interests with the company’s long-term performance goals.

Santos Limited Announces Director’s Share Acquisition
Apr 17, 2025

Santos Limited has announced a change in the director’s interest, specifically involving Kevin Thomas Gallagher, who has acquired 139,466 fully paid ordinary shares. This change reflects a transfer of beneficial interest in shares held by the employee share plan trustee, deferred for two years as part of the 2024 STI award. The announcement highlights the company’s ongoing commitment to aligning the interests of its leadership with its operational goals, potentially impacting stakeholder confidence and market perception.

Santos Limited Reports Strong Q1 2025 Results and Project Progress
Apr 17, 2025

Santos Limited reported strong financial results for the first quarter of 2025, with a 9% increase in free cash flow from operations, driven by higher production in Western Australia and robust LNG sales. The company is nearing completion of significant development projects, including the Barossa LNG and Pikka phase 1, which are expected to boost production by over 30% by 2027. Santos continues to focus on operational excellence and project execution, maintaining resilience amid volatile markets. The company’s carbon capture and storage initiative, Moomba CCS, is performing well, supporting its decarbonization strategy.

Santos Limited Ceases 29,191 Share Acquisition Rights
Apr 11, 2025

Santos Limited announced the cessation of 29,191 share acquisition rights due to the lapse of conditional rights that were not met. This development may impact the company’s capital structure and could influence investor sentiment, reflecting the challenges in meeting certain operational or financial conditions.

Santos Limited Issues New Securities to Strengthen Market Position
Apr 11, 2025

Santos Limited has announced the issuance of 6,474 ordinary fully paid securities, effective from April 11, 2025. This move is part of the company’s ongoing financial strategies, potentially impacting its market position and offering implications for stakeholders regarding the company’s growth and investment opportunities.

Santos Limited Reports Key Project Advancements and Strong Shareholder Support at 2025 AGM
Apr 10, 2025

Santos Limited announced significant progress in its key projects during the 2025 Annual General Meeting. The Pikka project’s pipeline is nearly complete a year ahead of schedule, potentially allowing for early production. The Barossa LNG project is 95.2% complete and is expected to start gas production in the third quarter of 2025. The company received strong shareholder support for its climate strategy, reflecting confidence in its decarbonization efforts. Santos remains resilient amid global market volatility, with a strong balance sheet and plans to increase production by over 30% by 2027, positioning itself well for future growth.

Santos Limited Highlights Strong Performance and Strategic Focus at 2025 AGM
Apr 10, 2025

At the 2025 Annual General Meeting, Santos Limited highlighted its strong cash flow generation and successful execution of major projects, contributing to new production. The company achieved its best personal safety performance in a decade, despite facing global challenges such as geopolitical instability and energy security concerns. Santos continues to focus on sustainable growth and decarbonization, positioning itself to navigate the evolving energy landscape.

Santos Limited Corrects Director’s Interest Notice Currency Error
Mar 20, 2025

Santos Limited has issued a correction to a previously released Appendix 3Y Change of Director’s Interest Notice. The correction involves the currency of the value/consideration, which was initially stated in US dollars but should have been in Australian dollars. This correction ensures accurate financial reporting and maintains transparency with stakeholders, reflecting the company’s commitment to regulatory compliance.

Santos Limited Director Increases Shareholding
Mar 19, 2025

Santos Limited announced a change in the shareholding of its director, Janine McArdle, who acquired an additional 30,000 fully paid ordinary shares, bringing her total to 80,000 shares. This acquisition, executed through an on-market purchase at an average price of approximately US $6.20 per share, reflects a significant increase in her stake, potentially indicating confidence in the company’s future performance.

Santos Limited Director Increases Shareholding
Mar 18, 2025

Santos Limited announced a change in the director’s interest as Michael Jesse Utsler acquired an additional 10,000 fully paid ordinary shares, bringing his total holdings to 50,000 shares. This on-market purchase reflects a strategic move potentially indicating confidence in the company’s future performance and could influence stakeholder perceptions positively.

Santos Limited Announces Director’s Interest Change
Mar 14, 2025

Santos Limited announced a change in the director’s interest, specifically concerning Kevin Thomas Gallagher. An off-market transfer of 476,306 fully paid ordinary shares was made to K&S Gallagher Holdings Pty Ltd, resulting in a shift in the indirect interest holdings. This change reflects internal adjustments in shareholding structures, which may influence the company’s governance and shareholder dynamics.

Santos Limited Director Increases Shareholding
Mar 12, 2025

Santos Limited announced a change in the director’s interest, with Vickki McFadden acquiring an additional 12,000 fully paid ordinary shares through an indirect interest via Tallis Pty Limited. This on-market purchase increases her total holdings to 62,000 shares, reflecting confidence in the company’s future prospects and potentially influencing stakeholder perceptions positively.

Santos Limited Director Increases Shareholding
Mar 12, 2025

Santos Limited has announced a change in the director’s interest, with Keith Spence acquiring 16,480 ordinary shares through an on-market purchase. This acquisition increases his direct holding to 150,457 shares, reflecting confidence in the company’s future prospects and potentially impacting stakeholder perceptions positively.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.