Harbour energy Assignment PDF

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Independent
Expert’s Report
about Santos
Limited

ABN 53085479
AFS License no. 248598
Level 27, 268 George Street
The Directors Sydney NSW 2000 Australia
Santos Limited Telephone: [phone]
PO Box 344 Fax: [phone]
Whyalla www.Longrenedwards.com
South Australia 5600
Australia.
20 May 2018
Subject: Takeover offer by Harbour energy
Dear Sir,
Introduction:
1. On 3rd April 2018, Harbour energy issued its statement about the bid and the
announcement has been done by the company on the same date that:
a. The harbour energy would take over all the shares of the Santos limited.
b. The company would offer US $ 4.98 per share and $ 6.13 per share would be paid in
case and 37% shares would be franked dividend.
c. The closing price on 2nd April 2018 was $ 5.07.
d. The offer is quite higher than the market value of the company.

2. In addition, the harbour limited would pay only $ 6.13 per share and rest share would be
full frankly dividend which explains that the shareholders who accept the proposal of the
company would got $ 6.13 per share.
Company overview:
3. Santos limited is an Australian company which deals in the natural gas. The company is
engaged in production, development, exploration, sales of natural gas in Australian
market as well as international level.
4. The company produced the ethane, methane, liquid petroleum gas, shale gas and oil. The
company has been founded in 1954. The company has been awarded as second largest
independent oil and gas Production Company.
5. The financial performance of the company explains about the continuous loss to the
company. However, the deal offered by US energy player, Harbour energy is not good
for the company as the company could generate more profits from the market through
making few changes into the corporate strategies.
Summary of opinion:
6. The reports and analyst of company explains that the offer us neither reasonable nor fair.
The analyst reports explains about the few reasons:
Trend analysis:
7. Trend analysis is a study which measures the changes into the financial performance and
position of an organization.
8. On the basis of trend analysis study over the company, it has been measured that the total
revenue of the company in continuously enhancing as well as the trend explains that the
net loss trend of the company has been lower.
9. It has also impacted over the earnings per share of the company.

Item Dec-14 Dec-15 Dec-16 Dec-17
Operating Revenue 10.88% -19.59% 10.44% 11.12%
Other Revenue 117.65% -17.57% 330.45% -8.21%
Total Revenue Excluding Interest11.86% -19.56% 16.34% 9.80%
Reported NPAT After Abnormal-281.20% 188.56% -46.37% -68.10%
EPS Adjusted (cents/share) 5.05% -967.59% -83.76% -71.25%
10. Further, the statement of financial performance of the company explains that the total
current assets and noncurrent assets of the company have been lowered and due to it, total
worth of the company has been lower. Total liabilities level of the company has been
lowered. However, the company has strategized to manage the resources on the basis of
profitability generation capability of the company.
Item Dec-14 Dec-15 Dec-16 Dec-17
Total Current Assets -0.0063 0.29305 0.283513 -0.61254
Total NCA 0.086243 -0.06709 -0.11696 -0.13104
Total Assets 0.077691 -0.01911 -0.03955 -0.20032
Total Liabilities 0.196025 -0.10304 -0.03685 -0.3455
Total Equity -0.08488 0.077338 -0.04268 -0.06724
11. The trend analysis study on competitive company, BHP Billiton explains that the changes
into the industry, financial factors and economical factors have affected the performance
of the company.
12. The study of trend analysis explains that in future, the position of the company would be
better again. The management of the company is just required to make changes into the
policies to enhance the performance of the company.
Financial ratio analysis:
13. Financial ratios are a study which explains about the various position and performance of
the company. It evaluates the financial position of the company and assists the company
about the internal and external impact over the company.
14. Profitability ratio of the company explains that the profitability performance of the
company has been lowered a lot in last 5 years.