STO -2.84%: The stock was hit today following their FY21 results that were slightly light on in terms of earnings while a weaker oil price overnight didn’t help. Underlying profit for the year of $946m was a sharp increase on FY20 profit of $337.8m and largely inline with the $950m expected by the market. FY22 will be a big year for Santos following the recent acquisition on Oil Search (OSH) with profit expected to hit nearly ~$2bn from revenue of nearly ~$7bn from the combined group. The focus now will be on their pathway to deleverage via $2-3bn asset sell downs and how capital management will play out from there.
MM remains long & bullish STO, targeting at least $8.00
Add To Hit List
