Beach reports 10% drop in underlying profit in July-December
Australian oil and gas producer Beach Energy on February 13 reported a 10% year/year drop in underlying net profit for the six months to December 31 (H1FY2023) owing to a decline in production and sales volume.
Underlying net profit, which strips out extraordinary items, came in at A$191mn ($132mn) versus A$213mn in the same period last year. Beach produced 10mn barrels of oil equivalent (boe) in H1, down 10% yr/yr. The company’s sales volume was 10.5mn boe, down 7% yr/yr.
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Beach has trimmed its full year production guidance to 19mn to 20.5mn boe, down from its previous guidance of between 20mn and 22.5mn boe. It also narrowed its capital expenditure guidance to between A$900mn and A$1bn from A$800mn and A$1bn.
Beach had earlier this month slashed its Perth basin estimated gas reserves by 11% following the Waitsia Stage 2 drilling campaign. The company said that despite the downgrade its ability to supply 3.75mn metric tons of LNG volumes to BP and meet domestic gas commitment remains unchanged.
Waitsia is one of the largest onshore gas fields ever discovered in Australia. Japan's Mitsui and Beach took a final investment decision on the project in 2020. The company has signed an agreement with Italy’s Webuild to complete the Waitsia Stage 2 project in Western Australia.
Meanwhile, Beach will no longer be referencing its financial year 2024 production target.
“Production is subject to timing of major project delivery which has been impacted by regulatory changes and the Clough administration,” it said. “Updated FY24 production guidance will be provided with Beach’s full year results in August 2023.”