Higher prices, volumes boost Beach's interim profits

PERTH (miningweekly.com) – Oil and gas producer Beach Energy has doubled its net profit to A$103.4-million for the interim period to December 31, as a result of higher prices and volumes.

Revenue was up 26% year-on-year to A$354.4-million.

Sales volumes for the six months under review were up by 25%, to 6.4-million barrels of oil equivalent, owing to record half-year production, while sales revenue increased by 27% to A$344-million, compared with the A$272-million reported in the previous corresponding period.

Total net production for the period was 5.5-million barrels of oil equivalent, a 22% increase on the previous corresponding period. Oil production hit a record high of just over three-million barrels, while gas and gas liquid production reached 2.4-million barrels of oil equivalent.

Gross profit for the year was up 309% to A$104-million, with the higher oil and gas prices and sales volumes partly offset by higher royalties and depreciation and amortisation charges.

On the back of higher production during the interim period, Beach has increased its full-year production guidance from between 9.7-million and 10.3-million barrels of oil equivalent (boe), to between 10.3-million and 10.7-million boe.

Meanwhile, capital expenditure (capex) for the full year has been reduced from the previous estimate of between A$180-million and A$200-million, to between A$170-million and A$180-million.

The revised capital guidance reflected the continued progress with cost savings and efficiencies, which resulted in an overall reduction in capex estimates, despite increased drilling activity.