Beach Energy (BPT) H2 2025 earnings summary

Executive summary

• Achieved strong FY25 results with material growth in financial and operational metrics, driven by strategic objectives, operational transformation, and higher East Coast gas volumes and Waitsia LNG cargoes.

• Strategic focus on cost reduction, margin expansion, operational excellence, and disciplined gas marketing improved margins and free cash flow.

• Supplied 19% of East Coast domestic gas demand from operated and non-operated assets, reinforcing position as a key supplier.

• Record fully franked dividend of 9.0 cents per share declared, reflecting strong free cash flow and low leverage.

• Significant progress on sustainability, including Moomba CCS ramp-up, emissions intensity reduction, and best personal safety performance in 14 years.

Financial highlights

• Sales volumes rose 16% to 24.7 million barrels of oil equivalent, with sales revenue up 13% to $2 billion.

• Underlying EBITDA increased 20% to $1.1 billion; underlying NPAT up 32% to $451 million.

• Underlying EBITDA margin improved by 300 basis points to 57%.

• Pre-growth free cash flow increased fourfold to $657 million.

• Statutory earnings impacted by a $474 million post-tax non-cash impairment related to Cooper and Perth Basins.

Outlook and guidance

• FY26 production guidance: 19.7–22.0 million barrels of oil equivalent, influenced by Waitsia Gas Plant ramp-up, Equinox rig campaign, and Cooper Basin flood recovery.

• Capital expenditure guidance: $675–775 million, with up to 55% allocated to growth projects; sustaining capital expenditure below $450 million, abandonment expenditure $200–$250 million.

• Waitsia Gas Plant expected online in Q1 FY26, with a 4-month ramp-up to 90% utilisation and further drilling and development planned.

• Flood impacts may reduce production by up to 0.8 MMboe; one-off expense items up to $24 million expected.

• Focus on cost discipline, targeting $11 per barrel unit operating cost.