S&P/ASX 200 Index (ASX: XJO) energy stock Beach Energy Ltd (ASX: BPT) is taking a tumble today.
Beach Energy shares closed yesterday at $1.52. In morning trade on Thursday, they are changing hands for $1.45 apiece, down 4.3%.
For some context, the ASX 200 is up 0.8% at this same time.
Beach Energy stock is facing some pressure from the big overnight slump in global oil prices. The Brent crude oil price is down 2.0% to US$74.68, as traders take in the impact of US President Donald Trump's overture to Iran and his reconstruction plans for Gaza.
The S&P/ASX 200 Energy Index (ASX: XEJ) is also down 0.7% today.
Here's what's happening with Beach Energy.
ASX 200 energy stock sinks despite profit lift
Investors are biding down Beach Energy shares today following the release of the company's half-year results (H1 FY 2025). With some strong metrics, investors' expectations were clearly high.
The ASX 200 energy stock reported production for the six months of 10.2 million barrels of oil equivalent (MMboe), up 15% year on year. Management credited the boost to strong operational performance.
Sales revenue for the half year was up 5% from H1 FY 2024 to $990 million, with two Waitsia LNG swap cargoes delivering $139 million in revenue. Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 20% to $587 million.
And with the ASX 200 energy stock enjoying an 18% boost in its average realised gas price to $10.5/GJ, underlying net profit after tax (NPAT) for the half was up 37% to $237 million.
Passive income investors should be pleased by the fully franked 3.0 cents per share interim dividend, a 50% increase from last year. The company said the dividend boost was supported by higher free cash flow and strengthened liquidity.
Indeed, Beach Energy's operating cash flow was up 88% year on year to $659 million, while net debt came down 33% to $389 million. As at 31 December, Beach Energy had $631 million in cash reserves and undrawn committed facilities.
What did management say?
Commenting on the results that have failed to lift the ASX 200 energy stock today, Beach Energy CEO Brett Woods said, "Beach's pleasing half year results demonstrate early turnaround signs following the strategic review initiatives announced last year."
Woods added:
Over the past six months, we have worked hard to deliver the organisational reset, including a more than 30% reduction in headcount and appointment of new executive leadership. Major projects have been completed and strong operations delivered with outstanding safety and environmental performance.
This has underpinned growth in earnings and cash flow and a further strengthening of our financial position.
On the sustainability front, Woods noted:
During the half, Beach successfully commissioned the Moomba CCS project. The project has capacity to inject and store all produced reservoir CO2 from the Moomba Gas Plant and has already sequestered roughly 340,000 tonnes (gross) of CO2-equivalent in the first three months since coming online.
What's next for the ASX 200 energy stock?
Looking at what could impact the ASX 200 energy stock in the months ahead, Beach Energy amended its FY 2025 production guidance to 18.5 MMboe to 20.5 MMboe from the previous 17.5 MMboe to 21.5 MMboe.
FY 2025 capital expenditure remained unchanged at $700 million to $800 million.
As for Beach Energy's major projects, Woods said:
Commissioning of the Waitsia Gas Plant is now well underway, and we continue to target first sales gas in Q4 FY 2025. In the Otway Basin, we expect activity for the Offshore Gas Victoria program to commence, including drilling the Hercules gas exploration prospect.
