Beach Energy promises big capital spend after profit lift
Adelaide-headquartered oil and gas company Beach Energy has promised its biggest ever year of investment after posting an 86 per cent increase in underlying net profit after tax.
Beach reported today that its full-year underlying profit for the 2017-18 year had increased to $302 million, with sales revenue up 92 per cent.
Net profit after tax was $199 million – down 49 per cent on the previous year, due to exploration asset impairment and acquisition and integration costs.
Beach is promising its “biggest ever investment year” this financial year, with capital expenditure expected to be in the range of $460-540 million. The investment is designed to support the company’s production increase target.
The company described the year as “transformational”.
Chief Executive Officer Matt Kay portrayed the results as evidence of the “successful acquisition and integration of the former Lattice Energy assets”.
“FY19 starts a new phase for Beach, as we embrace becoming a multi-basin oil and gas explorer, developer, operator and producer,” Kay said in a statement.
“Having conducted a comprehensive review of the assets across the business, we expect FY19 to be the biggest ever investment year for Beach.”
– Indaily
