Beach Energy (BPT) H2 2024 earnings summary

Executive summary

• FY24 results were broadly in line with expectations, with revenue up 9% to $1.8 billion and production at 18.2 MMboe, down 7% year-over-year due to lower nominations, project delays, and weather impacts.

• Strategic review completed, resulting in a new organizational structure, 26% headcount reduction, cost savings, and a refreshed focus on core hubs and operational efficiency.

• Major projects progressed, including Waitsia Gas Plant (first gas targeted early CY2025), Thylacine West, and Moomba CCS, with Waitsia ramp-up critical for FY25 outcomes.

• Sustainability initiatives advanced, including the inaugural Climate Transition Action Plan and Moomba CCS nearing completion.

• Emphasis on disciplined capital allocation, cost reduction, and maintaining a strong financial position.

Financial highlights

• Sales revenue increased 9% to $1.8 billion, driven by higher realized prices and early Waitsia LNG cargoes.

• Underlying EBITDA was $950 million (down 3% year-over-year); underlying NPAT was $341 million, down 11% due to higher depreciation.

• Free cash flow was $163 million; operating cash flow fell 17% to $774 million.

• Final dividend declared at 2.0 cents per share, full-year 4.0 cents per share, up 33% year-over-year.

• Net assets reduced by $565 million to $3.3 billion, mainly due to non-cash impairment charges; net gearing at 15% with $437 million available liquidity.

Outlook and guidance

• FY25 production guidance maintained at 17.5–21.5 MMboe; capital expenditure guidance at $700–800 million.

• Waitsia Stage 2 first gas expected early CY2025, with ramp-up over 3–4 months; CapEx guidance for Waitsia remains $600–650 million.

• Field operating cost target for FY25 is ~$14/boe, with a goal to reach <$11/boe by FY26; free cash flow breakeven oil price targeted at ~US$30/bbl.

• Depreciation and amortisation expected at $400–450 million; one-off expense of up to $59 million may be incurred for unavoidable LNG costs prior to Waitsia Stage 2 completion.

• Focus on operational execution, cost discipline, and progressing Thylacine West and Moomba CCS.