Santos Limited has announced an ordinary dividend of USD 0.134 per share for the first half of 2025, payable on October 1, with multiple currency payment options available to shareholders.
- USD 0.134 ordinary dividend declared for H1 2025
- Dividend partly franked at 10%, majority unfranked
- Payment date set for October 1, 2025
- Multiple currency payment options including AUD, GBP, PGK, and USD
- Dividend Reinvestment Plan will not operate for this distribution
Dividend Announcement Overview
Santos Limited (ASX, STO), a key player in the oil and gas sector, has declared an ordinary dividend of USD 0.134 per share for the six months ending June 30, 2025. This dividend will be paid on October 1, 2025, with an ex-dividend date of September 2 and a record date of September 3. The announcement confirms the company’s ongoing commitment to returning value to shareholders amid a complex global energy landscape.
Franking and Tax Details
The dividend is partially franked at 10%, reflecting a modest corporate tax credit, while the remaining 90% is unfranked. This split indicates that most of the dividend income will not carry Australian franking credits, a factor that may influence the after-tax returns for Australian investors. The franked portion amounts to USD 0.0134 per share, with the bulk of the payment classified as conduit foreign income.
Currency Payment Flexibility
In a notable feature, Santos offers shareholders the option to receive their dividend payments in multiple currencies. While the dividend is declared in US dollars, shareholders can elect to receive payments in Australian dollars, British pounds, or Papua New Guinean kina, depending on their location or preference. This flexibility is designed to accommodate the company’s diverse shareholder base across Australia, the UK, Papua New Guinea, and the United States. Shareholders must make their currency election by the record date to take advantage of this option.
Dividend Reinvestment Plan Status
Importantly, the company has confirmed that its Dividend Reinvestment Plan (DRP) will not operate for this dividend payment. This decision means shareholders will receive cash dividends rather than having the option to reinvest dividends into additional shares. The absence of the DRP could reflect strategic considerations by the board regarding capital management or market conditions.
Looking Ahead
The AUD equivalent of the dividend will be confirmed on September 10, 2025, following the determination of exchange rates. Investors will be watching closely to see how currency fluctuations impact the final payout in Australian dollars. Overall, this dividend announcement underscores Santos’ steady approach to shareholder returns while navigating the complexities of international currency payments and partial franking.
Bottom Line?
Santos’ dividend announcement balances steady returns with currency flexibility, setting the stage for investor scrutiny on exchange rate impacts.
Questions in the middle?
- How will currency fluctuations affect the AUD equivalent dividend payout?
- What are the strategic reasons behind not operating the Dividend Reinvestment Plan this period?
- Will the partial franking influence investor appetite, especially among Australian shareholders?