Beach Energy (BPT) H1 2025 earnings summary

Executive summary

• Achieved strong half-year results with 15% production growth to 10.2 MMboe, 20% increase in underlying EBITDA to $587 million, and a 50% higher fully franked interim dividend of 3.0 cents per share, reflecting progress from strategic initiatives and project completions.

• Net profit after tax rebounded to $222.3 million, reversing a prior loss, driven by higher sales revenue, lower costs, and absence of impairments.

• Major projects completed include Waitsia Phase 2 drilling, Otway Gas Plant capacity restoration, and Moomba CCS commissioning, with Waitsia Gas Plant commissioning ongoing.

• Achieved a 32% reduction in headcount, exceeding the 30% target, and completed executive leadership appointments.

• Maintained outstanding safety and environmental performance, with no major incidents.

Financial highlights

• Sales revenue up 5% year-over-year to approximately $990 million, with LNG cargoes contributing $139 million and average realised gas price up 18% to $10.5/GJ.

• Underlying NPAT increased 37% to $237 million; gross profit rose 37% to $362.9 million.

• Operating cash flow rose 88% to $659 million; pre-growth free cash flow exceeded $431 million, more than 10x H1 FY24.

• Net gearing reduced to 10%; available liquidity at $631 million; closing cash reserves at $251 million.

• Cost of sales decreased 5% to $680.7 million, mainly due to lower third-party purchases and field operating costs.

Outlook and guidance

• FY25 production guidance narrowed to 18.5–20.5 MMboe, with Waitsia first gas now expected in Q4 FY25.

• Capital expenditure guidance unchanged at $700–800 million, with $363 million spent in H1 and additional spend expected for Western Flank drilling and Otway exploration.

• Sustaining capital expenditure on track to be below $450 million for FY25.

• Free cash flow break-even oil price close to zero for the first half due to high-margin LNG swap cargoes; targeted at ~US$30/bbl for FY25.

• Focus for H2 FY25 includes Waitsia commissioning, Perth Basin drilling, offshore Victoria activity, and Western Flank oil campaign.