The Beach Energy Ltd (ASX: BPT) share price is ending the week strongly.
In afternoon trade, the energy producer's shares are up 4% to $1.84.
Why is the Beach Energy share price charging higher?
Investors have been fighting to get hold of the company's shares this afternoon following the release of a positive announcement.
That announcement relates to the comprehensive strategic review that Beach Energy is undertaking which aims to re-set the base business, deliver increasing returns to shareholders, drive efficiency, and earn the right to grow.
According to the release, the first stage of the strategic review has been completed and a new asset-based organisational structure will be implemented by 8 April 2024. This will see several of the current executive team leave Beach over the coming months.
Beach advised that new executive leadership appointments are underway and will be announced once all positions have been confirmed.
Furthermore, to achieve efficiency and operational cost improvements, a targeted headcount reduction of 30% will be delivered across the business.
But Beach Energy isn't stopping there. It advised that further outcomes from the strategic review will be announced over the coming months.
Beach Energy's managing director and CEO, Brett Woods, appears optimistic over the changes. He said:
Our new organisational structure will bring sharpened focus on our core assets as we strive to become a dominant supplier of gas into Australia's East Coast and West Coast markets. It is imperative that Beach regains its status as a safe and efficient, low-cost operator by achieving structural reductions in operating costs and sustaining capital expenditure, including the announced reduction in headcount.
Decisions about headcount reductions are not made lightly as we are highly cognisant of the personal impact organisational change can have on individuals and their families. To minimise the personal impact we are committed to implementing the new structure as soon as possible.
The Beach Energy share price is now up 32% over the last 12 months.
