How Will Santos’ Currency Choices Shape Its 2025 Final Dividend?

Dividend Details and Currency Options

Santos Limited has provided an update to its previously announced 2025 final dividend, clarifying the foreign exchange rates used to convert the dividend declared in US dollars into other payment currencies. The dividend amount remains unchanged at USD 0.103 per share, payable on 25 March 2026, with a record date of 24 February 2026.

The company’s dividend is unfranked, reflecting its status as conduit foreign income, and relates to the six-month period ending 31 December 2025. No shareholder or regulatory approvals are required for this dividend payment, streamlining the process ahead of distribution.

Multiple Currency Payment Arrangements

Santos continues to pay dividends primarily in US dollars but offers shareholders the flexibility to receive payments in Australian dollars, British pounds, or Papua New Guinean kina, depending on their registered address or banking instructions. Shareholders outside these jurisdictions may opt for electronic payments in their local currency through the share registry’s international payment service.

The update specifies the exchange rates applied for currency conversion: AUD/USD at 0.7101, GBP/USD at 1.3452, and PGK/USD at 0.2326. These rates determine the equivalent dividend amounts in each currency, with AUD 0.1451, GBP 0.0766, and PGK 0.4428 per share respectively.

Shareholder Election and Dividend Reinvestment Plan

Shareholders wishing to change their dividend payment currency had to make their election by the record date, 24 February 2026. Elections made after this date will apply to future dividends only. Notably, Santos’ Dividend Reinvestment Plan (DRP) is not applicable to this final dividend, meaning shareholders will receive cash payments rather than reinvested shares.

This currency flexibility reflects Santos’ international shareholder base and the company’s efforts to accommodate diverse preferences, potentially mitigating currency risk for investors depending on their domicile.

Implications and Market Context

While the dividend amount remains steady, the explicit disclosure of exchange rates provides transparency and allows investors to better anticipate the value of their dividend payments in their preferred currency. Given ongoing currency fluctuations globally, this clarity is timely and important for investor confidence.

As Santos navigates a complex global energy market, maintaining clear communication on shareholder returns is a key part of its investor relations strategy. The unfranked nature of the dividend also underscores the company’s tax positioning and foreign income status.