PERTH (miningweekly.com) – ASX-listed Beach Energy reported an after-tax net profit of A$387.5-million for the year ended June 30, compared with a net loss of A$588.8-million in the previous corresponding period.
Beach told shareholders on Monday that the after-tax net profit was A$976-million higher than the 2016 financial year, mainly owing to the recognition of a deferred tax assessment in the current year, as well as asset sales and reduced impairment charges.
Beach last week announced that it would reverse the A$150-million pre-tax impairment previously reported at its Cooper basin production assets, as a result of sustainable performance improvements, cost savings, capital efficiencies and upward reserve revisions.
This reversal was partly offset by impairment of exploration and other assets of A$41-million, of which A$33-million was booked in the first half of the financial year.
Meanwhile, the company achieved record production of 10.56-million barrels of oil equivalent in the financial year, a 9% increase on the 2016 financial year, with oil production 11% higher at 5.72-million barrels of oil equivalent and gas and gas liquid production up 8% to 4.48-million barrels of oil equivalent.
As a result, revenue increased by 17%, to A$662.4-million, while the costs of sales were down 3% to A$463-million mainly as a result of lower third-party purchases and inventory. This was partly offset by higher depreciation from increased production and higher royalties.
Looking ahead, the company expected to produce between 10-million and 10.6-million barrels of oil equivalent in 2018, with at least 10-million barrels of oil equivalent being targeted for the 2019 and 2020 financial years.
For 2018, Beach expects to spend between A$220-million and A$260-million in capital expenditure.