Santos Limited
(ASX:STO) says it has secured an additional three-year $1 billion bilateral bank loan facility with ANZ Banking Group
(ASX:ANZ).
The oil and gas producer says the facility significantly enhances its liquidly profile and financial flexibility at attractive funding costs.
Chief Financial Officer Andrew Seaton says the facility provides a substantial buffer over and above the company’s funding needs in the current uncertain oil price environment.
Santos’ stock has recently slumped in the wake of a declining oil price and touched a 10-year low last week after a ratings cut from Standard & Poor’s.
The company announced last week it will cut its capital expenditure by 25 per cent over next year to $2 billion.
Santos reported a net profit of $206 million in the first half of the 2014 calendar year.
