Beach Energy H1 FY26 earnings: Profit drops as costs rise and volumes slip

Beach Energy shares drop focus as H1 FY26 profit falls 32%, driven by lower prices, higher costs and reduced production.

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The Beach Energy Ltd (ASX: BPT) share price is in focus today after the oil and gas producer reported a 32% drop in statutory net profit after tax to $150.2 million for the six months to 31 December 2025. Revenue slipped 1% to $981.7 million, as lower oil and liquids prices and volumes weighed on results, partially offset by stronger prices for produced gas and higher LNG cargo sales.

What did Beach Energy report?

  • Sales revenue down 1% to $981.7 million
  • Net profit after tax (NPAT) decreased 32% to $150.2 million
  • Underlying NPAT dropped 8% to $219.0 million
  • Gross profit fell 19% to $294.3 million
  • Fully franked interim dividend declared at 1.0 cent per share (down from 3.0 cps)
  • Production fell 7% to 9.5 million barrels of oil equivalent (MMboe)

What else do investors need to know?

Beach saw a significant increase in costs, with cost of sales up 10% to $745.7 million, mainly due to product inventory movements and higher third-party purchases and tolls linked to additional LNG cargoes. Other expenses also jumped, largely attributed to a $61.2 million exploration expense for the unsuccessful Hercules 1 well.

Strong realised gas prices provided some support, with the average realised gas price up 13% to $11.82 per gigajoule. The balance sheet remained steady, with net assets at $3.17 billion and cash rising to $235 million. The company paid a 6.0 cent final dividend and will pay a 1.0 cent interim dividend in March 2026.

What did Beach Energy management say?

Managing Director and CEO Brett Woods said:

Our steady financial footing and safe operational performance through a challenging half positions Beach for an active second half, particularly as Waitsia ramps up and offshore campaigns progress.

What's next for Beach Energy?

Looking ahead, Beach Energy plans to ramp up gas production from the Waitsia plant and begin the second phase of the Equinox drilling program in the Otway and Bass Basins. The Western Flank's 12-well oil campaign and a fresh 10-well exploration program are also set to continue through FY26.

The company reaffirmed FY26 full year guidance, targeting group production between 19.7 and 22.0 MMboe and capital expenditure of $675–775 million. Management also flagged further cost discipline and progress on regional project milestones.

Beach Energy share price snapshot

Over the past 12 months, Beach Energy shares have declined 17%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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