Santos’ 1Q24 results provided more clarity into Santos’ spend in Energy Solutions for the quarter. 

Our view

We welcome the addition of Santos Energy Solutions capex in quarterly results. Santos must now demonstrate to investors how it plans to increase investment to meet its $3-4.5bn ambition.

Investors engaging with Santos should ask for:

1. Quantification of the overall cost and emission implications of producing synthetic methane and providing carbon capture services.

2. Plans to monitor the effectiveness of its Moomba CCS project and how potential liabilities will be managed should it fail to capture all emissions from external sources.

3. The alternative transition strategies Santos could consider if it cannot build a significant and viable proposition for fossil-based fuels (synthetic methane) and CCS as a service.

4. Provide emissions disclosure on a financial year basis to align with financials.

Key takeaways