PERTH (miningweekly.com) – Energy major Beach Energy has reported an 8% fall in revenue and a 12% fall in underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) for the full year ended June, on the back of an 11% fall in production.

Production in the 12 months to June reached 19.5-million barrels of oil equivalent, generating revenues of A$1. 61-billion and underlying Ebitda of A$982-million.

Beyond the 2024 financial year, Beach is targeting a material increase in production rates through a number of growth projects.

“Our significant investment in organic growth over recent years has started to bear fruit. Connection of the Thylacine North wells enabled an increase in Otway gas plant well deliverability of some 70 TJ/d to some 170 TJ/d. This is a critical new source of gas supply for the East Coast market,” said interim CEO Bruce Clement.

“The Waitsia Stage 2 project in Western Australia will see our gas sold into the global liquefied natural gas market. The Waitsia joint venture (JV) and Webuild, our construction contractor, have worked to overcome a number of hurdles following the disruptions from Clough’s voluntary administration. The project is progressing to first gas, targeted for mid-2024.

"While still in Western Australia, the Perth basin gas exploration campaign commenced and will continue over the coming year. This is a truly exciting campaign for the basin and for Beach.

“In New Zealand, the team has secured regulatory approvals and a drilling rig for the Kupe South 9 development well, which is planned to spud this half. It was also another year of outstanding operational performance, with the Kupe gas plant achieving reliability of over 99%,” said Clement.

“In the Western Flank, the focus was on horizontal development drilling for oil. The programme delivered 22 new oil producers, several follow-up opportunities, and an uptick in oil production toward the end of the year. The Cooper Basin JV had pleasing drilling outcomes, with a success rate of 93% from 117 wells drilled.

“Implementation of our new capital management framework delivered franked dividends of 4c a share, a 100% increase from the prior year. The framework provides a transparent pathway for increased shareholder returns as we deliver our growth projects.

“Progress on decarbonisation was spearheaded by the nation’s biggest emissions reduction project, Moomba carbon capture and storage, which is scheduled for first carbon dioxide (CO₂) injection in 2024. Once operational, it will have the capacity to store up to 1.7-million tonnes of CO₂ annually, making a substantial contribution to mitigating emissions.

“In the 2024 financial year we remain focused on delivering several exciting growth catalysts. Perth basin exploration, connection of the Enterprise gas discovery, progressing Waitsia to first gas (targeted mid-2024) and drilling of the offshore Kupe South 9 well will deliver a strong foundation for Beach in 2024 and beyond.

“The resulting production uplifts will come at a time when markets need our products more than ever, where under investment in new supply, continuing supply constraints and robust demand are common themes,” Clement said.

For the 2024 financial year, Beach is targeting production of between 18-million and 21-million barrels of oil equivalent, with capital expenditure of between A$850-million and A$1-billion.