A disappointing production outlook for 2014-15 saw Beach Energy’s (BPT) shares sink 3% yesterday, to close at $1.705.
The fall came despite confirmation the company had its best ever production and sales performance in the year to June 30.
Beach told the ASX yesterday that it expects to produce between 8.6 and 9.4 million barrels of oil equivalent (mmboe) in 2014-15, down from the record 9.6 million mmboe in the year to June 30.
Beach said the small fall reflected the timing of new oil facilities being brought on line, the ramp up of production in South Australia’s Cooper Basin, and a natural decline in the Bauer oil field.
Beach boosted sales volumes by 20% during the June quarter to 2.8 million mmboe, taking sales for the full year to a record 10.8 mmboe (including sales by other parties).
BPT 1Y – Beach shares down as it projects flat 2014-15
The solid performance for 2013-14 was reflected in the company’s best ever revenue performance.
Beach said it had record full year sales revenue of $1.05 billion in the year to June, up 51% from 2012-13, and thanks to record oil production and a strong Australian dollar Brent (London) oil price.
Of that, Beach’s share was $840 million, up 16% from the previous financial year.
Revenue for the three months to June rose 14% from the prior quarter to $264 million and was mainly due to the timing of oil shipments and higher gas demand because of winter.
Beach said it participated in 33 wells in 2013-14, "with a success rate of 82%".
The company also expects to spend between $450 million and $500 million on development and exploration during 2014-15.
Capex for the 2013-14 financial year was up 14% at $507 million, the company said yesterday, with $144 million spent in the June quarter (up 14%).
"As a result of expected operating cash flow, and in conjunction with a cash balance at 30 June 2014 of $411 million and a secured $300 million debt facility, Beach anticipates it will be able to fund its FY15 capital expenditure activities in full," the company said yesterday.
