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Beach Energy boosts sales

Jul 29, 2015

Increased customer demand for gas and higher oil production have helped boost Beach Energy sales by 16 per cent in the latest quarter.

In its report to the ASX today, the Adelaide-based oil producer said quarterly production of 2.3 million barrels of oil equivalents (MMboe) was up 8 per cent on the previous quarter, while revenue was up $40 million to $170 million.

Full-year production was 9.2 MMboe, with full-year sales of 10.5 MMboe – slightly below those in the previous financial year.

Managing director Rob Cole said Beach Energy was navigating well through the current conditions, with a cash position of $170 million.

“Beach is in a strong financial position with our cash balance slightly up from the previous quarter as a direct result of decisions made, especially in relation to capital expenditure,” he said in a statement.

“We have identified corporate cost savings of approximately 15 per cent in FY16, which will mainly be attributed to contractors, consultants, and a focus on discretionary spend. A review of corporate costs will continue as part of Beach’s broader organisational review.

“We have also continued to realign our focus closer to home through exiting Romania and progressing the sale of our Egyptian business.”

Beach announced production guidance for the financial year 2016 of 7.8 to 8.6 MMboe, lower than the FY15, but is expecting higher gas sales.

 

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