A worker passes by a large oil reservoir in Sydney'
A worker passes by a large oil reservoir at Sydney's Caltex Oil refinery in Kurnell, October 14, 2014, after the completion of shutting down of the refinery and its transition to an oil storage facility. Brent oil prices fell on Monday, tumbling more than $2 a barrel intraday to their lowest since 2010, after key Middle East producers signaled they would keep output high even if that meant lower prices. Brent oil prices have tanked by nearly 25 percent since June as ample supply coincided with weak demand, raising the possibility that the Organization of the Petroleum Exporting Countries (OPEC) could cut output. REUTERS/Jason Reed

On Friday, the market reports depicted huge fall in the oil prices of Australia-based Santos. The net profit dropped from AU$206 million to AU$37 million after 82 per cent fall in the oil prices. CEO and current Managing Director David Knox has decided to resign after the significantly diminished oil prices and explored expenses.

In 2014, Santos earned AU$21.0 per share, while in 2015 it has reduced to AU$3.7 per share. The company is planning to review its old strategies and implement novel ones to deal with the pressure continuing on its share over past years. The market share cost has reached to the lowest this century, which is encouraging other parties to buy its assets. Through enhanced strategies, Santos will make sure it takes its name to the position it earlier was.

Due to the lowering of oil prices, the sales revenue of the company dropped from AU$1.9 billion to AU$1.6 billion, which accounts to 15 percent fall. Peter Coates, chairman of the company, will take the responsibility of reviewing the strategies and formulating the new ones as an executive chairman. “No options will be ruled out from consideration, but neither is any particular option a preferred course at this time,” he said in a statement.

Knox will leave the position of CEO as soon as a successor is found. “After seven years as CEO and with the commencement of production at the company’s GLNG project now imminent, the board and David have agreed that it is an appropriate time to institute a succession of leadership,” Coates stated confirming the decision of Knox to leave.

Chief Financial Officer of the Adelaide-based oil and gas producer, David Seaton, in a conversation with analysts said that Santos expects free cash flow in 2016 that will lead to more earning than expenditure on investment and maintenance, if the Australian dollar stays in the same position and oil process are back to US$45-50 (AU$62-68) per barrel.

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