Beach Energy reports production drop, revenue rise

The news: Oil and gas firm Beach Energy reported a dip in production but a boost in revenue for the December quarter, capitalising on higher gas prices.

The numbers: Beach Energy's production came to 4.3 million barrels of oil equivalent (MMBoe) for the December quarter, down 4% compared to the previous quarter, and a 11.6% drop-off compared to the same period a year earlier. However, high gas prices led to a quarter-on-quarter revenue increase of 37% to $544 million.

The context: The Adelaide-based firm, backed by media billionaire Kerry Stokes, attributed the decline in production levels to a halt in operations at its Kupe and Lang Lang gas plants. The company revised down its full-year production guidance from 18-21 MMBoe to 18-20 MMBoe, while lifting its capital expenditure guidance for the year to $900-1,000 million from $850-1,000 million.

What they said: Interim CEO Bruce Clement said: "These commercial outcomes are a further demonstration of Beach’s ability to deliver new gas volumes to the domestic market, and are key milestones toward our expected step-up in production rates and cash flow to come this calendar year and beyond."