Beach Energy's profit falls on account of higher costs and lower oil prices
Beach Energy, Australia, reported a 8% drop in its first-half profits?on Friday, due to higher costs of sales and lower oil and liquids price. This sent the company's shares down?more?than?5%.
The benchmark ASX200 index edged down 0.2%, as shares of the oil-and-gas producer fell as much as 5.18 percent to A$1.190. This was their biggest intraday decline since January 7th.
The Adelaide-headquartered company attributed the profit drop ?to higher cost of sales, including third-party purchases, non-cash inventory adjustments linked to ?Waitsia liquefied natural gas operations, and weaker oil and liquids pricing.
Last year, oil prices dropped?nearly 20 percent in the sharpest decline since the pandemic of 2020. This was after a turbulent last?quarter that saw supply gluts as well as geopolitical tensions from Ukraine to the Middle East.
Beach?Energy reported a net profit of A$219 (US$153.28) million for the six-month period ended December 31. This was down from A$237 millions a year ago, but still above Visible Alpha’s forecast of A$180.4million.
Beach Energy started supplying gas to an LNG export facility in December of last year from its Waitsia project onshore, located north of Perth.
Beach Energy's revenue dropped?1% compared to last year, reaching A$982 Million. Four Waitsia LNG shipments contributed A$233 millions.
Floods in Southern Australia's Cooper Basin caused a 7% drop in production to 9.5 million barrels equivalent oil (MMboe).
Beach Energy has maintained its fiscal 2026 production forecast of 19.7MMboe-22MMboe, and capital expenditures of A$675million-?A$775million.
The board announced an interim dividend at 1 Australian cents per share. This is down from the 3 cents per shares declared a year ago.
(source: Reuters)
