Beach Energy (BPT) H1 2025 earnings summary

Executive summary

• Production increased 15% year-over-year to 10.2 MMboe, driven by strong operational performance, major project completions, and Waitsia LNG swap cargoes.

• Strategic initiatives included a 32% headcount reduction, new executive leadership, and cost reductions, supporting a turnaround in performance.

• Interim dividend increased 50% to 3.0 cps, fully franked, reflecting improved financial performance and higher free cash flow.

• Major projects completed: offshore Otway Basin development, Moomba CCS emissions reduction project, Waitsia Phase 2 drilling, and Otway Gas Plant capacity restoration.

• Safety outcomes improved significantly, with TRIFR reduced to 0.6 and no major process safety or environmental incidents.

Financial highlights

• Sales revenue up 5% year-over-year to approximately $990 million, supported by higher Otway and Bass Basin production and Waitsia LNG cargoes.

• Underlying EBITDA increased 20% to $587 million; underlying NPAT up 37% to $237 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% from 15% at June 2024; net debt down to $389 million; available liquidity at $631 million.

• Interim dividend of 3.0 cps declared, up from 2.0 cps in the prior period.

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 for FY25; sustaining capex on track to be below $450 million.

• Waitsia Stage 2 commissioning underway, targeting first sales gas in Q4 FY25; minimal production contribution assumed for Q4.

• Free cash flow breakeven oil price 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.