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Turnaround for Beach Energy fuelled by record sales

Business

Record sales volumes, higher oil prices and asset sales have helped Beach Energy post a $103.4 million first-half net profit, turning around a writedown-driven $600 million loss in the same period year earlier.

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Beach Energy has reported a 26 per cent rise in revenue to $345.4 million for the six months to December 31 and has increased its full-year production guidance range from 9.7-10.3 million barrels of oil equivalent to 10.3 to 10.7mmboe.

The Adelaide-based company has declared an interim dividend of one cent, fully franked.

In its half-yearly results reported today, Beach said the increased revenue was due to higher oil and sales volumes and higher oil prices, which was partly offset by lower third party sales and a higher Australian dollar.

“Oil sales revenue was up $39 million, mainly due to higher production and a higher realised oil price (up 9% to A$67/bbl),” the company reported. “Gas and gas liquids sales revenue was up 39% to $34 million, mainly due to higher production.”

Beach says the record half-year production, along with cost cutting, means it can expand it drilling activity in the second half.

“Beach expects to undertake an expanded FY17 capital program at a lower overall cost than originally estimated. This demonstrates significant progress made with operating and cost efficiencies during a period of low and volatile oil prices.”

– with AAP

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