PERTH (miningweekly.com) – Oil and gas producer Beach Energy has reported solid results for its full-year ended June, with underlying net profits up by 86%, while underlying earnings before interest, taxes, depreciation and amortization (Ebitda) increased by 80%.

Underlying net profits after tax reached a record A$560-million in the full year, while underlying Ebitda was up to A$1.37-million, which was above the guidance of A$1.1-billion to A$1.2-billion, Beach said on Monday.

MD Matt Kay told shareholders that the results capped off a substantial year for the company as it also achieved record production of 29.4-million barrels of oil equivalent.

“We have delivered on every promise we made at last year’s investors briefing and the focus is now about investing in the company’s high value growth assets.

“We have placed ourselves in a strong financial position that allows us to accelerate investment in our expanded growth portfolio as we continue our focus to deliver best-in-class returns for investment.”

With the focus turning to growth, Beach has improved its five-year production target, increasing it from between 30-million and 36-million barrels of oil equivalent, to between 34-million and 40-million barrels of oil equivalent.

The five-year free cash flow target has also been increased to A$2.7-billion.

“Our accelerated investment campaign will see approximately A$1.5-billion of additional investment over five years, starting in 2020, where 90% of our growth expenditure is projected to generate greater than 50% rates of return,” Kay said.

“This means that the drill-bit will see even more activity with participation in up to 196 wells, up from 134 in 2019, and using 10 rigs, up from five. In particular, we will be investing up to A$200-million in Western Flank oil, with up to 16 horizontal wells and further appraisal of the high producing Bauer field.”

For the 2020 financial year, Beach has set a production target of between 27-million and 29-million barrels of oil equivalent, with the company spending between A$750-million and A$850-million in capital during the next financial year.