Energy giant Santos has lost its chief executive and will consider selling assets as plunging oil prices slash its profit and market value.
David Knox will end his seven years at the helm of the Australian and Asian oil and gas producer once a replacement can be found, leaving chairman Peter Coates to oversee a strategic review.
The review has been launched to address the Santos's shrinking market value, which has wiped almost $10 billion from shareholders' investments in the company in under a year.
Santos shares dropped one cent to $5.60 on Friday, compared to the $15.19 they traded at one year ago.
Asset sales are likely, given Santos has recently been approached with expressions of interest from other parties.
"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," Mr Coates said.
Talks will be held with the interested parties, and Santos expects new offers to come now it has gone public with its intention to sell.
"No options will be ruled out from consideration, but neither is any particular option a preferred course at this time," Mr Coates said.
Santos has oil, gas and LNG assets across Australia, as well as in Papua New Guinea, Indonesia and Vietnam.
Its net profit of $37 million in six months to June 30 was down 82 per cent from $206 million a year ago, as its average realised oil price almost halved.
Drilling in PNG and Malaysia also lifted exploration spending.
Despite the massive profit fall, Mr Knox said Santos had responded to lower oil prices quickly and effectively.
Capital expenditure was down 55 per cent from a year ago, and production costs have also been lowered.
More will be done, and the company expects to achieve $180 million in supply chain savings in the full year, Mr Knox said.
But Mr Coates said low oil prices are set to put continuing pressure on the company.
However its flagship Gladstone LNG project in Queensland remains on track for first production by September, which is set to boost overall production.
LOW OIL PRICES CLAIM ANOTHER VICTIM
* Net profit down 82pct to $37m
* Revenue down 15pct to $1.6b
* Dividend down five cents at 15 cents
THE CAREER OF OUTGOING SANTOS CEO DAVID KNOX
* Joined the company in September 2007 after holding senior positions with BP, promoted to CEO less than a year later
* Oversaw the final decision in 2011 to go ahead with a multi-billion dollar LNG project at Gladstone
* Also launched several overseas projects, including gas production in Indonesia and PNG
* Courted controversy over his $3.4 million salary in 2014, narrowly avoiding a first strike from shareholders at its AGM
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