div classBodysc17zpet90 cdBBJodivpReuters Australias Santos Ltd announced an onmarket share buyback worth up to 250 million on Wednesday as part of a new capital framework targeting higher shareholder returns amid surging commodity prices.p
pThe new capital framework also includes a dividend policy of 10 to 30 of free cash flow, additional shareholder returns of at least 40 of incremental free cash flow in the form of additional share buybacks or dividends, the gas producer said.pdivdivdiv classBodysc17zpet90 cdBBJodiv
pOil and gas prices, already at strong levels at the start of the year, surged sharply in the March quarter after Russias invasion of Ukraine resulted in supply disruptions amid strong demand. [OR] [LNG]p
pSantos will release its quarterly sales and production report on Thursday, which is expected to show a big jump in revenue from the previous quarter and a year ago, partly due to its takeover of Oil Search and soaring crude prices.p
pThe Adelaidebased company, which booked record annual sales revenue in January and expects to reap big gains following its 6.2 billion takeover of Oil Search, is experiencing strong cash flow generation, it said in a statement https:cdnapi.markitdigital.comapimangatewayASXasxresearch1.0file2924025116512A1369353？access_token83ff96335c2d45a094df02a206a39ff4 on Wednesday.p
p“We are now in a position to target higher shareholder returns through our new capital management framework,” Santos Chief Executive Officer Kevin Gallagher said, adding he believes “the current share price undervalues the company”.p
pShares of the gas producer closed at a twoyear high of A8.32 on Tuesday, and have jumped 31.9 so far this year, compared with a meagre 0.6 gain last year.p
pThe share buyback is expected to start next month, and will be conducted during the year.p
p Reporting by Sameer Manekar in Bengaluru Editing by Krishna Chandra Eluri and Sherry JacobPhillipsp
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