Australian Beach Energy Swings Back into Black in 1H

Australian Beach Energy swung back into the black during the six months that ended December 31, 2016. The company February 20 said its 1H statutory net profit was A$103.4mn (US$79.5mn), up from a A$600mn loss a year ago owing to increased sales volumes and oil prices, gains on assets sales and reduced impairment charges.

Sales volumes were up 25% to 6.4mn boe due to higher production. Sales revenue for the half year ended increased by 27% to A$344mn.  

For the full year, Beach expects to undertake an expanded capital program at a lower overall cost than originally estimated. The company said it will continue to pursue inorganic growth opportunities within Australia and nearby which display similar risk profiles to its existing business.

Guidance for full year production has been increased to 10.3 - 10.7mn boe (previously 9.7 - 10.3mn boe). A range of factors contributed to this upgrade, including better than expected field performance, exploration success, field development outcomes and additional planned drilling activity, Beach said. 

Shardul Sharma