Beach Energy shares slump after full-year loss
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More news: Shares in Beach Energy have tumbled nearly 8% to $1.31 after the Kerry Stokes-backed oil and gas producer reported a full-year loss of $475.3 million on the back of lower production and impairments at key assets. Production for the year fell 7% as the company struggled with deliveries from its Otway Basin, Cooper Basin, and Perth Basin assets. Its shares are now down nearly 18% so far in 2024.
Beach Energy slumps to full-year loss
The news: Oil and gas producer Beach Energy has slumped to a full-year net loss on the back of lower production and impairments at key assets.
The numbers: The company reported a statutory loss of $475.3 million for the year to 30 June, compared to a $400.8 million profit a year ago.
Underlying profit was down 11% from a year earlier to $341.3 million. It will pay a final dividend of 2 cents a share, flat from the prior year.
The context: Production for the year fell 7% to 18.2 million barrels of oil equivalent (MBoe) as the company has struggled with deliveries from its Otway Basin and Cooper Basin assets. While full-year revenue was up 9% to $1.8 billion, underlying earnings remained flat from a year ago.
Beach completed a strategic review in June following recent troubles in a volatile price environment. The company, 30% owned by Kerry Stokes’ Seven Group, outlined job cuts in March following a hefty half-year statutory loss and has also written down the value of its Cooper Basin producing assets, New Zealand assets and the Bass Basin asset in recent months. It has also been beset by delays at its key Waitsia project in the Perth Basin.
What they said: Beach CEO Brett Woods said: “Strict operating principles underpin our objectives to improve margins and increase free cash flow. New financial targets include a free cash flow breakeven oil price below USD30 [$45.68]/bbl, field operating costs below $11/boe and annual sustaining capital expenditure below $450 million".
The source: ASX announcement
