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 $1.8 billion, up 9% year-over-year, despite challenges such as reserve downgrades at Enterprise and project delays.

• Strategic review completed, leading to a new organizational structure, cost savings, and a focus on core hubs for sustainable growth, including a 26% headcount reduction.

• 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 $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; final dividend declared at 2.0 cps, totaling 4.0 cps for the year.

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

Outlook and guidance

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

• Waitsia Stage 2 first gas expected early 2025, with a 3–4 month ramp-up; 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 break-even oil price targeted at ~US$30/bbl.

• FY25 production and outcomes highly dependent on Waitsia ramp-up timing.