Beach Energy produces record revenues

The company said new technologies are driving operating success.

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For FY13, Australia's sixth largest oil producer Beach Energy (ASX: BPT), announced record revenues of $700 million today, up 13% on FY12. The group produced a net profit after tax (NPAT) of $153.7 million, down 6%.

When adjusted for unfavourable movements in the mark-to-market value of convertible note conversion rights and profit of $27 million on the sale of joint-venture assets and interests, underlying NPAT was $141 million, up 15% on the year.

The company said results were driven by a strong Brent crude oil price, as tensions in the Middle East, specifically Syria, create escalating geopolitical risks. Beach is the largest net oil producer in Australia's Cooper Basin, and globally it produced 8 million barrels of oil equivalent (boe) in FY13, up 7% on last year. The company forecasts production between 8.7 and 9.3 million boe for FY14.

The company said the growth outlook remains positive, it will be initiating exploration activity in the Northern Territory's potentially lucrative Bonaparte Basin, New Zealand and Romania in FY14. Internationally, it has other operations in Egypt and Tanzania.

The full-year dividend amount is 2.75 cents per share, franked at 30% and up 22% on last year. In early trade today, the share price was flat at $1.37.

Foolish takeaway

The company has delivered another solid set of results. It has consistently grown revenues and the outlook appears sound. The business provides an excellent opportunity for investors looking to get exposure to Australia's most important oil and gas resource, the Cooper Basin.

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Motley Fool contributor Tom Richardson does not own shares in any of the companies mentioned in this article.

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