PERTH (miningweekly.com) – Oil and gas producer Beach Energy has narrowed its full year production expectations to reflect actual production achieved in the first half of the financial year.
The ASX-listed company is now expecting full year production to reach between 27-million and 28-million barrels of oil equivalent, down from the previous estimate of between 27-million and 29-million barrels of oil equivalent.
Production in the first six months of 2020 reached 13-million barrels of oil equivalent, down from the 15.2-million barrels produced in the previous corresponding period, while sales volumes declined from 16-million.
Revenues for the interim period decreased by 10% on the previous corresponding period, to A$948.3-million, while net profits after tax decreased by 2%, to A$278.5-million and underlying net profits after tax also decreased by 2%, to A$273.5-million.
“In a year in which we are undertaking a record level of growth investment, I am extremely proud to see the Beach team maintain its razor-sharp focus on execution and sustain a discipline towards cost management across the business,” said MD Matt Kay on Tuesday.
“Of particular note has been our ability to generate value through safe, reliable and efficient operations.
“The Kupe plant statutory shutdown was completed on time and on budget in November, with more than 80 000 hours of work executed with no recordable health and safety incidents. Our focus on performance has seen average facility reliability improve to 98% across the business.”
Beach is also undertaking further infrastructure expansion in the Western Flank to support higher levels of oil production, as well as additions such as participation in the larger Tawhaki exploration prospect in offshore New Zealand, and a new two-well appraisal campaign in the South Australian Otway basin, Kay said.
For the full 2020, Beach is expected to spend between A$875-million and A$950-million in capital expenditure.