Beach Energy Ltd ( ASX:BPT , OTC:BEPTF , FRA:BPS ) has reported record quarterly sales revenue of $565 million after stronger production, higher gas prices and additional LNG and oil liftings boosted its September quarter performance.
Production increased 9% from the previous quarter to 5.4 million barrels of oil equivalent, while sales revenue jumped 41%.
Higher production and prices
The result was supported by the lifting of two Waitsia LNG cargoes during the quarter as well as an additional Cooper Basin oil lifting.
Beach achieved an average realised gas price of $11.90 per gigajoule, up 7% quarter-on-quarter, while realised oil prices averaged $166 per barrel, supported by premiums of around US$19 per barrel.
The company maintained its full-year production guidance of 19.5 million to 23 million barrels of oil equivalent and capital expenditure guidance of $600 million to $700 million.
Abandonment spending set to ease
Beach spent $96 million on abandonment activities during the quarter as it completed its Equinox rig campaign.
The completion of the program is expected to reduce pressure on cash flow, with the company saying it does not anticipate further material offshore abandonment expenditure until the mid-2030s.
Gas policy warning
Chief executive Brett Woods also raised concerns about the proposed domestic gas reservation framework, warning it could discourage investment in new supply.
Woods said the final policy needed to recognise additional production from existing fields to ensure producers remained incentivised to invest in bringing more gas to market.
