Beach reports 21% drop in underlying profit
Sydney-listed Beach Energy on August 16 reported a 21% year/year drop in underlying net profit during the 12 months to June 30 (FY21) owing to a decline in product sales volume and lower realised oil price.
The underlying net profit, which excludes one off items, came in at A$363mn compared with a A$459mn profit in the same period a year earlier. The net profit after tax was A$317mn ($233.4mn) as against a A$499mn profit in the same period a year earlier. The result included a A$117mn write down.
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Beach produced 25.6mn barrels of oil equivalent in FY21, below the original guidance of 26.5-27.5mn boe. Sales volume was down 6% yr/yr which realised oil price was down 3% yr/yr.
For FY22, Beach expects production of 21-23mn boe. Capital expenditure is forecast at A$900mn-A$1.1bn, up from A$671mn in FY21.
Managing director, Matt Kay, said that Beach expects production to be further impacted by the declining Western Flank fields, ahead of the ramp up of production in the Perth basin and Victorian Otway basin development projects.
“The Offshore Otway campaign will progress throughout the year with first gas from the new Geographe development wells on track for mid-FY22 and all six development wells expected to be drilled by the end of FY22, pending stable weather conditions,” Kay said. “These wells, once connected to the Otway Gas Plant, will help to supply the constrained East Coast gas market, which is facing supply shortfalls in the coming years.”