Photo by: Bloombeg
PERTH (miningweekly.com) – Despite reporting a slight increase in sales volumes for the three months to September, ASX-listed Beach Energy's sales revenue fell 15% on the back of the falling oil price.
Sales volumes for the quarter were up 1% quarter-on-quarter to 2.5-million barrels of oil equivalent, while sales revenue declined from the A$170.2-million reported in the June quarter, to A$145.2-million.
The slight increase in sales volumes resulted from higher gas demand during peak winter months and the initiation of an oil-linked gas sales agreement with Origin.
Production volumes for the same period remained unchanged at 2.26-million barrels of oil equivalent.
Meanwhile, Beach reported on Tuesday that capital expenditure (capex) for the first quarter decreased by 36% on the June quarter, to A$44-million, consistent with the company’s curtailed spending programme for the full 2016.
For the full year, capex was expected to reach between A$240-million and A$270-million, as lower oil prices were expected to continue. Beach had invested A$416-million in capex in the 2015 financial year.
Beach recently announced a merger with fellow-listed Drillsearch Energy to create a A$1.1-billion midcap oil and gas company. Under the terms of the agreement, Beach has agreed to acquire all Drillsearch shares through a scheme of arrangements, with Drillsearch shareholders offered 1.25 Beach shares for every Drillsearch share held.