PERTH (miningweekly.com) – ASX-listed Beach Energy on Friday warned of an asset impairment of some A$449-million after tax for the second half of the 2015 financial year, primarily relating to its assets in the Cooper basin and in Egypt.
The impairment charges were in addition to the A$165-million after-tax impairment reported in the first half of the financial year.
“It is important to bear in mind that the full-year impairments have no cash impact and do not affect Beach’s underlying business,” acting CEO Neil Gibbins said.
“The reduction in asset values partly reflects the sustained low oil price environment. Also, the recently announced sale of the Egyptian assets is consistent with our strategy to focus closer to home where we believe our core competencies can be better used to grow shareholder value.”
The company in June announced its exit from Romania and, earlier this month, entered into a sales agreement over its Egyptian assets.
Gibbins said that, despite sustained low oil prices, the benefits of this new approach were already being seen, with Beach’s enviable financial position and continued strong operational performances.