Oz Beach's H1 Underlying Profit Drops 2%

Australian Beach Energy's underlying net profit, which excludes the impact of one-off items, for the six months to December 31 (H1 2020) was down 2% yr/yr to A$274mn (US$183.5mn), the company said February 11.

H1 sales revenue dropped by 6% to A$900mn and production fell by 15% to 13mn barrels of oil equivalent, dragged lower by the temporary shutdown of Kupe in November, Beach said. Net profit was down 2% to A$279mn. 

Beach has revised lower its annual production guidance for the full year. It expects to produce between 27mn and 28mn boe, having previously forecast output of between 27mn and 29mn boe. The company also said capital expenditure would be higher at between A$875mn and A$950mn, up from a prior forecast of A$750mn-A$850mn.

“We’re undertaking further infrastructure expansion in the Western Flank to support higher levels of oil production, as well as additions such as participation in the large Tawhaki exploration prospect in offshore New Zealand and a new two-well appraisal campaign in the SA Otway Basin,” Beach managing director Matt Kay said.

Kay said Beach’s attention is focussed on the back end of the year – in which the Victorian Otway campaign continues to ramp up. “Our Victorian Otway drilling program has now commenced, with Black Watch-1 expected to reach target depth in early March. The Ocean Onyx rig is currently scheduled to arrive in March, to kick off our 9 well offshore drilling program with the Artisan-1 exploration well,” Kay said.

In the Cooper Basin, Kay said, the company will continue its Western Flank exploration and appraisal campaign with a view to increasing oil and gas production, and we will also support facility upgrades at Port Bonython to deliver improved capacity.

“In the Perth Basin we are targeting FID for Waitsia Stage 2 by the end of the financial year and in New Zealand we are keenly awaiting the results of the Tawhaki exploration well which is currently drilling,” he said.