Before announcing its full-year results, Santos acknowledged it had not anticipated the depths of the oil price slump. There is no shame in that; neither did any other producer in the world or, for that matter, did we. Yet other oil producers, although pained, haven’t been as crippled as Santos.
Origin Energy, for example, appears in far better shape. So why has Santos been hit so hard? In our view, it isn’t the crisis itself that has hurt most, it is the reaction of management.