A London-based shareholder activism group that helped lead a profitable battle towards Australia’s largest carbon emitter is now taking goal at its second-biggest oil and gasoline producer.
Snowcap Research on Thursday launched a 62-page presentation accusing Santos of pursuing development on the expense of shareholder returns and ignoring the “transition risk” because the world reduces its reliance on fossil fuels.
Snowcap mentioned Santos plans to spend 83 per cent of its working money circulation over the following three years on capital bills (capex), “by far the most aggressive growth plan of any major E&P (exploration and production) company globally.”
“As far as we can tell, Santos’ growth ambitions appear to be driven by a series of perverse executive incentives which reward absolute growth, even where it destroys value for shareholders,” Snowcap mentioned.
Snowcap is asking on Santos to cut back its bills on upstream capex, that means expenditures associated to grease and gasoline extraction, enhance its environmental and security efficiency, re-align govt incentives and refresh governance.
In tandem with billionaire Mike Cannon-Brookes, Snowcap final 12 months helped tank the demerger of AGL’s coal-fired energy crops, which the utility is now planning to shutter sooner than beforehand.
Also on Thursday, activist group Market Forces mentioned it was urging shareholders to vote towards Santos’ renumeration report “on climate grounds” on the firm’s April 6 annual normal assembly.
Since Santos recorded a “first strike” final 12 months, if 25 per cent of the shareholders vote towards the report subsequent month, it could set off an computerized “spill motion,” that means shareholders would vote on whether or not or to not spill the complete board and make them stand for re-election.
Market Forces mentioned it could put ahead the same decision towards Woodside at that firm’s April 28 AGM.
A Santos spokeswoman did not instantly return an e mail looking for remark. In its discover of assembly, Santos famous the activist shareholders looking for to amend the corporate’s structure owned simply 0.007 per cent of firm shares.
Source: www.perthnow.com.au
