Santos today announced a new Purpose, Strategy and business organisation as the company reaffirmed its commitment to delivering strong shareholder returns and achieving net-zero emissions (scope 1 and 2, equity share) by 2040.
Speaking at the company’s Investor Briefing Day in Adelaide, Managing Director and Chief Executive Officer Kevin Gallagher said Santos’ new Purpose – to provide cleaner energy that is both affordable and sustainable to help create a better world for everyone – is our future.
“The energy transition journey that we have been on will only accelerate from here. We are building on our pioneering past to achieve our aim of creating a better world for everyone, through providing cleaner energy,” Mr Gallagher said.
“The successful execution of our Transform – Build – Grow strategy since 2016 has the company positioned for disciplined growth and sustainable shareholder returns. The business is performing well, with strong free cash flow generation of US$2.7 billion this year to the end of September.
“But we will continue to evolve to meet the challenges of the transition to cleaner energy and a net-zero future. Today we have unveiled our new strategy of Backfill and sustain – Decarbonisation – Clean fuels.
“Energy security is a top priority for countries in our region. Given the strong customer demand for our product now and into the future, we will seek to backfill and sustain our core assets to deliver the critical fuels the world needs into the 2040s. But we will also decarbonise these critical fuels, in-line with our target of net-zero emissions (scope 1 and 2, equity share) by 2040, and produce clean fuels as customer demand evolves.
“This will provide a low carbon intensity base business that will provide a strong foundation to provide sustainable shareholder returns and fund the energy transition.
“To deliver the transition and our new Purpose, we have restructured the business into two divisions of Upstream Gas and Liquids and Santos Energy Solutions. In 2017, Santos set up an Energy Solutions team and today’s announcement is the next step in our plans to build our transition business, including our decarbonisation and carbon management services business, on our path to a cleaner energy future.
“We have a strong balance sheet supportive of disciplined growth and a business model to generate strong shareholder returns through the transition.”