An In-Depth Analysis of Santos Ltd.’s Performance and Its Key Determinants in the Australian Energy Sector

Abstract

This research aims to pinpoint the internal factors and external risks that could potentially affect the performance of Santos Ltd between the year 2018-2022. The study concentrates on examining 7 internal factors, as well as 5 external factors, and exploring a combination of two aspects that might have an impact on Santos Ltd.’s performance. To achieve the research goals, the study employs statistical and regression methodologies to establish the correlation between these identified factors and Return on Assets (ROA). The researcher utilizes the linear regression method to analyse the relationship between performance, liquidity risk, credit risk, operational risk as well as market risk. This approach aims to determine whether there is a positive or negative impact of these risk factors on the company's performance, which is reflected on ROA. It is undeniable that, economic conditions globally and regionally can impact energy demand. The trade tensions, economic slowdowns, and the COVID-19 pandemic during this period could have affected the overall demand for oil and gas.

Keywords: Santos Ltd, Performance, Return on Asset, ROA, Oil and Gas Industry, Global Energy Sector, Australia