Expert Report about Santos Limited

[ T y p e t h e c o m p a n y
n a m e ]
lenovo
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Independent
Expert’s Report

ABN 48798542
License no. 8795486
Sydney,
Chief executive officer, Australia
Santos Limited Telephone: [phone]
Australia Fax: [phone]
www.expertreport.com
20 May 2018
Subject: Expert Report about Santos Limited

Santos Limited,
Introduction:
1. An offer has been made to Santos limited by one of the largest energy company of US
market to acquisition.
2. The company has offered the Santos limited a deal of acquisition.
3. In the acquisition statement of Harbour limited, it has been mentioned by the company.
Harbour limited that the stock position of the company is not well in the market.
4. Harbour limited has measured the market and explained that the stock price of Santos
limited at the end of April 2, 2018 is $ 5.07.
5. However, harbour limited is offering AUD 6.13 to Shareholders of Santos limited per
share.
6. Company has also mentioned that if someone does not want to sell the ownership of the
company than the Harbour limited would offer fully franked dividend to the shareholders
of Santos limited.
7. Initially, the offered deal of acquisition, dividend and franked dividend are quite
attractive for Santos limited as the company is not performing well from last few
decades.
8. The company is natural gas dealer in Australian market. It majorly focuses on the various
activities of natural gas from exploration to sales of natural gas (Home, 2018).
9. Santos limited has been recognized by the Australian market as second largest oil and gas
Exploration Company in private sector.
Opinion about the Harbor energy’s deal:
10. The annual report (2017) and yahoo finance (2018) of Santos limited explains that the
share price of the company has been lower as well as no profits have been earned by the
company in last 5 years.

11. On the other hand, it has been found that the valuation measurement and forecasting
process on the company explains that the financial performance and the financial position
of the company has improved a bit and in future, the company would again be able to
make the profits.
12. It explains that the performance of the Santos limited must be measured on the basis of
the financial performance, changes into the final statement of the company, changes into
the performance and the strategies of the company, dividend policy of the company etc.
Financial statement analysis:
13. The financial statement of the company has been measured to identify the performance of
the company. The main statement of the Santos limited contains the income statement,
cash flow statement and the balance sheet of the company. It measures the financial
performance of the company and explains about the entire changes in the performance of
the company.
14. The income statement of the company has been evaluated firstly and it has been analyzed
that the performance of the company is average. The share price and the market
performance of the company have been lower. However, company has maintained to
manage the level of expenses which has improved the profitability position.
2014 2015 2016 2017
Share Return 54.49% -472.75% -76.79% -22.08%
P/E ratio 1.51% -0.08% -0.52% -2.47%
Market Book ratio 86.22% 63.71% 83.50% 123.83%
Gross profit margin 44.59% -180.65% -14.26% 12.56%
Net profit margin -22.74% -81.58% -37.61% -10.93%
Income ratios
(Annual report, 2018)
15. The balance sheet of the company has been evaluated further and it has been analyzed
that the stock and financial position of the company has been improved. The company
has made enough changes into the financial position and the capital structure of the
company to manage the performance of Santos limited in 2017.