Oz Beach Reports 8% Drop in Q3 Revenue

Australia’s Beach Energy April 22 said its revenue during the three months to March 31 (Q3 2020) was down over 8% yr/yr due to sharply lower realised oil price.

The company’s revenue during the quarter was A$431mn (US$273mn) as against A$470mn in the corresponding period of last year. Average realised oil price dropped 40.8% yr/yr to A$74/barrel. Beach’s average realised gas price during the quarter was up 8.6% yr/yr to A$7.6/gigajoules, it said.

Sydney-listed Beach’s production during Q3 was 6.94mn barrels of oil equivalent as against 7.23mn boe in the year ago period. The company has kept the production guidance for the financial year 2019-2020 unchanged at 27 – 28mn boe.

Last month, Beach announced it will cut capital expenditure by 30% in the financial year 2020-2021 (July-June) relative to its prior planning due to drop in oil prices. This week, the company, as the operator of the Victorian Otway Basin joint venture, issued Diamond Offshore Drilling with a notice of termination for the Ocean Onyx rig contract. Beach said it is now in talks to negotiate a new rig contract.