Beach Energy reports 11% increase in sales revenue in January-March

Australian oil and gas company Beach Energy on April 24 reported an 11.05% year/year increase in sales revenue in the January-March quarter (Q3FY24) due to higher prices and increased sales volume. 

Beach recorded sales revenue of A$392mn ($255.4mn) in Q3, compared with A$353mn in the same period last year. Revenue was down 28% quarter/quarter due to lower output, sales volumes and realised oil prices, partially offset by higher realised gas prices.

Sales volume in Q3 was 4.8mn barrels of oil equivalent (boe), up from 4.6mn boe last year but down 21% q/q. Production during the quarter was 4.5mn boe, same as last year but up 4% q/q. Beach has revised the full year FY24 production guidance to 18 – 18.5mn boe from previous guidance of 18 – 20mn boe.

“It was pleasing to record no personal safety, process safety or environmental incidents during the quarter. However, our results were overshadowed by the delay to construction of the Waitsia gas plant and weather related impacts to production,” said Beach CEO Brett Woods. 

The Waitsia Stage 2 gas project, located in Western Australia, faced fresh delays and cost escalations due to quality issues encountered during pre-commissioning activities. As a result, the first gas from the Waitsia gas plant is now expected by early 2025, with a planned three-month ramp-up of production thereafter, significantly delayed from the original projection of May 2023.

The Waitsia gas field is one of the largest onshore gas fields ever found in Australia. In 2020, Beach Energy and Japan's Mitsui made a final investment decision to proceed with the project.