PERTH (miningweekly.com) – Oil and gas producer Beach Energy has reported a 92% surge in revenue for the 2018 financial year, and an 86% increase in underlying net profit after tax, following the integration of the Lattice Energy assets into its portfolio.
Beach in September last year struck a A$1.58-million deal to acquire Lattice Energy, which held a 67% interest in the Otway gas project, in Victoria, as well as an interest in various adjacent exploration permits, along with the Halladale, Speculant and Black Watch gasfields in the Otway basin. Lattice also owns a 42.5% interest in the Bass gas project, in Victoria, as well as interests in discoveries located in nearby exploration permits.
Beach this week reported that production for the 2018 financial year was up 80%, from 10.6-million barrels of oil equivalent, to 19-million barrels of oil equivalent, with sales volumes increasing by 70%, from 11.8-million barrels to 20.1-million barrels of oil equivalent.
Sales revenue increased from A$653-million to A$1.25-billion, while underlying net profit after tax rose from A$162-million to A$302-million.
CEO Matt Kay said the results were evidence of the successful acquisition and integration of the former Lattice Energy assets.
“We have created a high performing team that has continued to deliver strong results through the integration process; a credit to Beach staff across the business.
“The 2019 financial year starts a new phase for Beach, as we embrace becoming a multi-basin oil and gas explorer, developer, operator and producer. Having conducted a comprehensive review of the assets across the business, we expect 2019 to be the biggest ever investment year for Beach.”
Kay said the company’s strong cash flow generation ensured that Beach would continue to rapidly pay down debt, with net gearing forecast to fall below 20% by the end of 2019.
Beach is targeting a capital spend of between A$460-million and A$540-million for 2019, with production targeted at around 30-million barrels of oil equivalent by the 2021 financial year.
“With over A$850-million in liquidity, a strong reserves position, an expanded asset portfolio with proven cash generation potential and an attractive organic growth portfolio, we see this as the right time to deliver this high calibre investment programme.
“We have an exciting future ahead of us and we remain committed to creating shareholder value,” Kay said.