Beach Energy (BPT) H2 2024 earnings summary

Executive summary

• FY24 results were broadly in line with expectations, with production of 18.2 MMboe and sales revenue of AUD 1.8 billion, up 9% year-over-year, despite reserve downgrades and project delays.

• Strategic review completed, leading to a new asset-based structure, cost savings, and a focus on core hubs for sustainable growth.

• Major projects progressed, including Waitsia, Enterprise, Thylacine West, and Moomba CCS, with Waitsia first gas targeted for early 2025.

• Emphasis on operational efficiency, cost reduction, and maintaining a strong financial position.

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

Financial highlights

• Production was 18.2 MMboe, down 7% year-over-year due to lower nominations, project delays, and weather impacts.

• Revenue increased 9% to AUD 1.8 billion, driven by higher realized prices and early Waitsia LNG cargoes.

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

• Free cash flow was AUD 163 million; final dividend declared at AUD 0.02 per share, totaling AUD 0.04 for the year.

• Net gearing at 15% with AUD 437 million available liquidity at year-end.

Outlook and guidance

• FY25 production guidance is 17.5–21.5 MMboe, highly dependent on Waitsia ramp-up timing; capital expenditure guidance at AUD 700–800 million.

• Waitsia Stage 2 first gas expected early 2025, with a 3–4 month ramp-up; CapEx guidance for Waitsia remains AUD 600–650 million.

• Field operating cost target for FY25 is ~$14/boe, aiming for below $11/boe by FY26.

• Free cash flow break-even target below $30/bbl.

• Focus on operational execution, cost discipline, and delivering major projects, with additional value expected from Otway and Perth Basins.