Beach Energy flags potential $400m impairment charge

The news: Gas producer Beach Energy has flagged a hit to its full-year profit on the back of impairments related to assets in New Zealand’s Taranaki basin and Victoria’s Bass basin.

The numbers: The company expects a non-cash pre-tax impairment of between $115 million and $125 million at the Taranaki site and $250 million to $275 million at the Bass basin.

The context: Beach Energy attributed the Taranaki impairment to lower-than-expected reserves at Kupe South, and wrote down the value at Bass basin after ceasing development plans there.

Beach, 30% owned by Kerry Stokes’ Seven Group, previously wrote down the value of its Cooper Basin producing assets by $721 million in February. It has also been troubled by delays at its key Waitsia project in the Perth Basin.