Beach Energy records 66% net profit increase

Beach Energy workers at Otway Gas Plant (warrego)
Beach Energy workers at Otway Gas Plant

Beach Energy has released its FY22 Half Year results, which show the company delivered a statutory Net Profit After Tax (NPAT) of $213 million—a 66 per cent increase on the corresponding period.

Beach recorded first-half production of 11.02MMboe, as well as an EBITDA of $513 million at a revenue sales margin of 65 per cent, buoyed by realised oil price of $113.6/bbl.

Related article: Beach draws first gas from Geographe wells

Beach Energy acting CEO Morné Engelbrecht said the First Half of FY22 saw steady progress on Beach’s major growth projects in the Perth and Victorian Otway basins, as well as the Kupe gas plant returning to nameplate capacity.

“Delivering on this phase of our growth means we are making progress towards our production target of 28MMboe in FY24,” Engelbrecht said.

“We had previously stated FY22 was going to be a pivotal year in Beach’s transformation, and I’m proud of what we have achieved so far.

“This includes our historic LNG agreement with bp and connecting our first Otway offshore wells to the East Coast market.

“Our balance sheet remains in great shape as we retain a net cash position, and we are well placed to deliver on the next stage of our growth agenda.”

Engelbrecht acknowledged the past year had not been without its challenges but said he was proud of the way the Beach team showed resilience in its pursuit of the company’s growth ambitions.

“Despite the challenges in 2021, it is important to point out that Beach executed a significant portion of its organic growth platform, allowing us to enter 2022 with a solid base to keep delivering and reach our target of 28MMboe in FY24,” Engelbrecht said.

“The second half of FY22 remains a busy period with activity across the portfolio, and we are looking forward to the forthcoming Western Flank oil exploration campaign—in which any success would sit above our basecase target.”

Related article: IEA says gas prices have “hurt consumers, utilities and wholesalers”

Beach is currently undertaking an extensive international search for a new CEO.

The Beach board advises it has full confidence in Engelbrecht to oversee the company’s growth agenda, while the thorough search process is conducted in order to find the best possible candidate.

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