August 16, 2017 Read More →

Gas Giant’s Curtis Island Venture Takes $1Billion Hit

Gladstone Observer:

GAS giant Santos has slashed $1.1 billion from the value of its Gladstone Liquefied Natural Gas project on Curtis Island as it continues to deal with low oil prices.

The write-down of GLNG was announced yesterday and will be reflected in Santos’s half-yearly results this month.

It follows Origin Energy’s decision last week to write down $1.2 billion from the value of its Australia Pacific LNG project.

It is the third write-down of the GLNG venture, in which Santos has a 37.5% stake, after a $565million write down in February 2016, and $1.5billion in August last year.

The Institute for Energy Economics and Financial Analysis slammed the gas giant for its third write- down yesterday, saying the company “continued to lose money for its shareholders”.

“Earlier in the year, IEEFA predicted that Santos had overvalued its Gladstone LNG asset by US$1billion asset,” gas analyst Bruce Robertson said.

“It would appear that investors in Origin and Santos can look forward to further material write- downs in Santos’s GLNG venture and in Origin’s APLNG joint venture,” Mr Robertson said.

More: Gas giant’s Curtis Island venture takes $1 billion hit

Posted in: IEEFA In the News

Comments are closed.