Profit Decline, Reserves Downgrade Drag Beach Energy to 2.5-year Low

By Rajasik Mukherjee
Monday, August 12, 2024

Australian oil and gas producer Beach Energy, backed by billionaire Kerry Stokes, slumped to a more than 2-1/2-year low on Monday after it reported a decline in profit and downgraded reserves for a key gas field in Victoria state.

The company's shares closed 12.6% lower at A$1.245, hitting their lowest level since Dec. 29, 2021, and the stock logged its worst session since early April. It fell as much as 13.2% earlier in the day.

The stock was the top loser in the benchmark ASX 200 benchmark.

Beach reported a 11% year-on-year fall in annual net profit after tax to A$341 million ($224.3 million). Its fiscal 2024 production fell 7% to 18.2 million barrels of oil equivalent (MMboe) due to adverse weather conditions, it said.

Beach also lowered reserves at its Enterprise project, which allows raw gas to flow from the offshore reservoir to its Otway gas plant in Victoria.

The company told investors that it had noted a decline in pressure at the project, leading to a smaller reservoir than initially expected. This fueled concerns that the firm's target production would not be achieved.

"We had assumed all material reserves downgrades had been pre-announced in June, but the downgrade of Enterprise gas volumes is disappointing," Jarden energy analyst Nik Burns said.

Analysts at Citi warned investors of the condition of the reservoir.

Since coming online, Enterprise's reservoir pressure has declined more than anticipated, indicating a smaller container size, Citi analysts said in a note.


($1 = 1.5200 Australian dollars)

(Reuters - Reporting by Rajasik Mukherjee; Editing by Subhranshu Sahu and Sonia Cheema)

Categories: Finance Industry News Australia/NZ

Related Stories

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

MODEC and Terra Drone Renew FPSO Drone Inspection Partnership

Yinson Production Closes $1B Investment to Drive Further Growth

Fugro Expands Geotechnical Testing Capabilities in Indonesia

ABL Lands Work on BP’s Indonesian Gas and CCUS Project

Aker Solutions, PTAS JV Hooks Brownfield Services Extension off Brunei

Woodside to Shed Some Trinidad and Tobago Assets for $206M

Woodside Inks Long-Term LNG Supply Deal with China Resources

Current News

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com