Beach Energy profit drops after impairment

The news: Gas producer Beach Energy has posted a drop in underlying half-year profit amid stagnant production and a hefty impairment charge against its assets.

The numbers: The company posted a statutory loss of $345.1 million for the six months to 31 December 2023, while underlying profit dropped 10% from a year earlier to $172.7 million. The company wrote-down the value of Cooper Basin producing assets by $721 million.

The context: Beach Energy’s ASX-listed shares were up nearly 2% at $1.69 in early trading, with the gas producer having already flagged lower production volumes last month.

The company has trimmed the top end of its full-year production guidance by one million barrels, and now expects it to be in the range of 18 to 20 million barrels. Beach, 30% owned by Kerry Stokes’ Seven Group, has been looking to deliver on promised increases in production but has been troubled by delays at its key Waitsia project in the Perth Basin.