Beach Petroleum achieved record annual production and sales revenue for the 20009 financial year, according to the 4th quarter production report released yesterday to the ASX.
The company said oil and gas production at totalled 9.625 million barrels of oil equivalent (boe), up 3.2% on the 9.323 million boe recorded in the 2008 year.
However, 4th quarter output fell to 2.224 million boe, down nearly 8% on the corresponding period last year, and about 7% lower than in the March quarter, 2009 figure.
Annual sales revenues rose to $581.4 million, a record and up slightly from the $564.4 million in the 2008 financial year.
Thanks to lower production and prices, sales revenue in the June quarter was down 9%.
"Although June quarter sales were slightly lower at $118 million, full year oil and gas sales of $581 million is a record for Beach," the company said.
The average realised price of each barrel of oil equivalent for the financial year was $55.18, down from $58.01 in the previous year and the average realised oil price was $92.83 per barrel, down from $111.45 a year earlier.
The company also said it was in a "powerful position" with no corporate debt and a strong balance sheet.
And there’s cash and shares coming in from selling the Tipton West coal seam gas prospect in Queensland to Arrow Energy and Shell.
"In addition to record oil and gas sales revenue, other revenue has also been boosted by the sale of Beach’s equity in the Tipton West project to Arrow Energy Limited from which Beach received A$260 million in cash and 20.6 million shares in Arrow Energy.
"Beach may also receive further payments of up to A$70 million depending on reserve upgrades at Tipton West and the future supply of gas by Arrow Energy to an LNG project.
"At 30 June 2009, Beach had sold 8 million of the Arrow Energy shares at an average price of $3.84/share, yielding proceeds of A$30.7 million before tax and transaction costs," the company told the ASX yesterday.
Beach shares rose 1.5 cents to 85.5 cents.
Newcrest Mining gold output both rose and fell in the June quarter from a year earlier and the March 2009 quarter due to lower production at its Cadia operations in New South Wales.
Australia’s largest listed gold miner said in its latest production report that output fell to 1.631 million ounces in the year to June 2009 from a record 1.781 million ounces a year before, meeting guidance of full-year production of 1.63 million to 1.70 million ounces.
In the fourth quarter output fell 8.6% to 397,826 ounces from 435,120 ounces mined in the same quarter a year before but was up 9% from the March quarter’s production of 364,794 ounces.
The company said annual copper production reached 89,876 tonnes in the 2009 year and meant guidance was exceeded for the year.
Newcrest shares fell 57 cents to $30.39 yesterday.
As expected, paper manufacturer PaperlinX has again downgraded its earnings guidance for 2009 and is now expecting a final result around 50% lower than in the 2008 financial year.
This is down from earlier guidance of 2009 earnings for a fall of 30%-35% on the 2008 figure.
And, it could be lower as the company has not concluded impairment tests for the carrying value of its remaining assets.
"This result includes the profit on sale of Netherlands properties booked in June; various restructuring activities that occurred through the year to further reduce the cost base going into the new financial year, and is before consideration of any impairment reviews," the company said yesterday in a statement to the ASX
PaperlinX said yesterday that the lower guidance for earnings before interest and tax (EBIT) had been influenced by the sale of properties in the Netherlands and company restructuring but it did not include impairment reviews.
It said its paper manufacturing, covering 11 months until the sale of the business, had been affected by a stronger Australian dollar and "softer pricing".
"Merchanting expenses show a significant favourable variance versus the prior year and prior expectations through successfully targeted cost reduction programs across all regions, but are insufficient to mitigate the worse than expected market driven volume weakness seen in the last six weeks of the year in Europe and North America."
But it said it had made "strong progress on working capital reductions and cash management in the second half".
It now expected net debt at June 30 of $220 million to $250 million, 30% lower than previous guidance of net debt of $327 million.
"As previously announced, reported EBIT before significant items for 2009 will be further reduced by around $95 million in costs relating to ongoing corporate overheads, previously announced FX losses and bank/note holder charges, consultants’ costs for lenders and related waiver fees and will also include a loss on sale adjustment of approximately $(150) million.
"PaperlinX also recorded an impairment in the carrying value of the fixed assets of Australian Paper of ($567.5) million in its interim results," the comp
