Beach Energy shares tumble on $474m impairment charge
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More news: Oil and gas explorer Beach Energy was the worst performing company on the ASX 200 after flagging an after-tax impairment charge of $474 million related to a lower commodity price outlook.
Beach shares were down 10.1% to $1.16 at 10:50am AEST, having slipped 17% since the turn of the year.
Beach Energy says FY25 underlying profit up 30% as output climbs
The news: Oil explorer Beach Energy has reported a 9% uptick in full-year production, meeting guidance, despite a decline in output during the fourth quarter.
The numbers: Beach recorded FY25 production of 19.7 millions of barrels of oil equivalent (MMboe), up from 18.2 MMboe in FY24.
In February, the company narrowed its full-year production guidance to a range of 18.5 to 20.5 MMboe, compared to the prior range of between 17.5 and 21.5 MMboe.
Fourth-quarter output totalled 4.6 MMboe, down 4% quarter over quarter.
Full-year sales volumes grew 16% year on year to 24.7 MMBoe and sales revenue climbed 13% to $2 billion.
Beach said full-year underlying earnings were up 20%, and underlying net profit after tax up 30%. However, the company flagged an after-tax impairment charge of $474 million related to a lower commodity price outlook, which is expected to be recorded in its full-year financial results, due on 4 August.
The context: Beach said construction at its Waitsia gas plant in the Perth basin is now complete, with commissioning "well progressed" as the company works towards first gas in the first quarter of FY26.
It noted that drilling at a development well at its Beharra Springs project has shown "partial depletion" in the northern section of the field, requiring a revision to gas reserves.
Beach, which is 30% owned by Kerry Stokes’ Seven Group, said flood levels in the Cooper Basin have now peaked and are beginning to recede slowly but the company expects a continuing impact on production during the first half of FY26.
The source: ASX
