Australia's Beach Energy reports 4% drop in revenue for April-June
Australian oil and gas company Beach Energy on July 19 reported a 3.8% year/year decrease in sales revenue for the April-June quarter (Q4FY24) due to lower sales volumes.
Beach recorded sales revenue of A$433mn (US$290mn) in Q4, compared with A$450 million in the same period last year. However, revenue was up 10% quarter/quarter due to higher output, sales volumes, and realised oil and gas prices.
The company announced that the Waitsia gas plant’s pre-commissioning activities are progressing, with the introduction of gas from the Xyris project into the plant expected in Q1 FY25 to facilitate the commencement of full commissioning.
Beach reported that production from the Xyris gas plant and third-party surplus gas sourced via swap arrangements enabled processing and lifting of the second Waitsia LNG cargo at the North West Shelf. The cargo was sold to BP in June 2024 under the existing LNG agreement.
Beach had secured an agreement with BP in September 2022. This agreement solidified BP's commitment to purchase all 3.75mn tonnes/year of LNG volumes expected from the Waitsia Stage 2 project. LNG is to be delivered on a free on board basis from the North West Shelf (NWS) facilities in Karratha, Western Australia. BP is an existing participant in the NWS joint venture.
The Waitsia Stage 2 gas project, located in Western Australia, faced fresh delays and cost escalations due to quality issues encountered during pre-commissioning activities. As a result, the first gas from the Waitsia gas plant is now expected by early 2025, with a planned three-month ramp-up of production thereafter, significantly delayed from the original projection of May 2023.
In response to the delays, Beach has put in place commercial arrangements to facilitate LNG cargo liftings prior to the completion of the Waitsia gas plant. Beach said it continues to utilise gas swaps to enable LNG cargo liftings prior to completion of the Waitsia gas plant. The Waitsia joint venture continues to explore mutually beneficial time swap opportunities with Western Australia gas market participants who have excess gas, prior to completion of the Waitsia plant, in exchange for returning these volumes when needed, Beach said.
The Waitsia gas field is one of the largest onshore gas fields ever found in Australia. In 2020, Beach Energy and Japan's Mitsui made a final investment decision to proceed with the project.