The Beach Energy Ltd (ASX: BPT) share price is in focus today after the company reported a 17% drop in quarterly sales revenue to $445 million and highlighted the successful ramp-up of its Waitsia Gas Plant.
What did Beach Energy report?
- Quarterly production down 9% to 4.5 million barrels of oil equivalent (MMboe)
- Sales volumes fell 13% to 5.9 MMboe
- Sales revenue down 17% to $445 million
- Average realised gas price rose 2% to $11.9 per gigajoule (GJ)
- Waitsia Gas Plant delivered first gas and peaked at 165 TJ/day after quarter-end
- Liquidity at quarter-end rose to $925 million
What else do investors need to know?
Production increases in the Western Flank and Cooper Basin joint venture were achieved following successful flood recovery efforts, with output up 5% and 12% respectively on the previous quarter. Meanwhile, planned maintenance and lower seasonal demand led to a 31% decrease in Otway Basin production.
Beach lifted two Waitsia LNG cargoes in the quarter, generating $111 million in revenue. The company also secured a $300 million term loan to further strengthen its liquidity, ending the quarter with $925 million in cash and undrawn facilities.
What did Beach Energy management say?
Managing Director and Chief Executive Officer Brett Woods said:
With growth activities underway across all of our core assets, it was an active quarter for Beach with delivery of key milestones on our major projects, whilst maintaining outstanding safety and environmental performance across all operations. Pleasingly, our Beach operated assets achieved 12 months injury free in late December.
Completion of the Waitsia Gas Plant and delivery of first sales gas into the pipeline network is a great achievement. I am very proud of our team's effort to support and drive the project to completion, unlocking a critical piece of infrastructure for the Western Australian gas market. The ramp-up process is well underway.
What's next for Beach Energy?
Beach is focused on reaching steady-state operations at Waitsia Gas Plant, with production expected to ramp up towards nameplate capacity in the third quarter of FY26. The company also plans to continue its drilling programs in the Cooper Basin and Western Flank, including an oil appraisal and development campaign and a 10-well exploration campaign into FY27.
Investors can expect further updates when Beach releases its FY26 half-year financial results in early February. Ongoing exploration and development activities will be a key driver for future production and earnings.
Beach Energy share price snapshot
Over the past 12 months, Beach Energy shares have declined 26%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
