Beach Energy shares rise on layoffs
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More news: Shares in Beach Energy climbed after the oil and gas company announced it would reduce its headcount by 30%, including layoffs for several of its executive team.
Beach shares were up 4.8% to $1.86 by 2:30pm AEDT.
Beach Energy to cut headcount by 30%, 'several' execs to leave
The news: Beach Energy will reduce its headcount by 30% across the business, including "several" of its current executive team, as the oil and gas major seeks efficiency and operational cost improvements.
The numbers: Last month, Beach posted a half-year statutory loss of $345.1 million, while underlying profit dropped 10% from a year earlier to $172.7 million. The Adelaide-based oil and gas major, 30% owned by Kerry Stokes' Seven Group, also wrote-down the value of its Cooper Basin producing assets by $721 million, and lowered the top end of its full-year production guidance by one million barrels.
Beach shares were trading 0.3% higher at $1.78 by 1:20pm AEDT.
The context: Beach said the layoffs are part of "comprehensive strategic review", which aims to re-set the base business, deliver increasing returns to shareholders, and drive efficiency. It noted that the first stage of the review has been completed with a new asset-based organisational structure to be implemented by 8 April.
With several of the current executive team expected to leave the company "over the coming months", new executive leadership appointments are underway and will be announced once all positions have been confirmed.
What they said: Beach managing director and CEO Brett Woods said: "Our new organisational structure will bring sharpened focus on our core assets as we strive to become a dominant supplier of gas into Australia's East Coast and West Coast markets.
"It is imperative that Beach regains its status as a safe and efficient, low-cost operator by achieving structural reductions in operating costs and sustaining capital expenditure, including the announced reduction in headcount.
"Decisions about headcount reductions are not made lightly as we are highly cognisant of the personal impact organisational change can have on individuals and their families. To minimise the personal impact we are committed to implementing the new structure as soon as possible."
The source: ASX announcement
