The Beach Energy Ltd (ASX: BPT) share price is in focus after the company reported quarterly production up 9% to 5.4 million barrels of oil equivalent (MMboe) and record sales revenue of $565 million, a 41% jump on the previous quarter.
What did Beach Energy report?
- Production rose 9% quarter-on-quarter to 5.4 MMboe, with August recording a six-year monthly high.
- Sales revenue surged 41% to $565 million, Beach’s highest-ever quarterly result.
- Average realised gas price improved 7% to $11.9 per gigajoule (GJ); average realised oil price was $166 per barrel.
- Sales volumes climbed 32% to 6.3 MMboe, aided by the timing of LNG and oil liftings.
- Capital expenditure fell 46% to $129 million as offshore abandonment works were completed.
- Total liquidity stood at $945 million, with $205 million in cash and $740 million in undrawn debt facilities.
What else do investors need to know?
Beach’s Waitsia Gas Plant performed strongly, achieving record monthly output in August and returning to full operation after planned maintenance in September. The completion of the Equinox rig abandonment campaign means no significant offshore abandonment spending is expected until the mid-2030s, reducing near-term cash flow risks.
The company settled a long-running shareholder class action for $43.5 million, to be fully covered by insurance and with no impact on FY27 financials. In gas marketing, Beach signed new medium-term contracts, including its first JKM-linked domestic gas sales deal on the East Coast, improving both supply flexibility and pricing.
What did Beach Energy management say?
Managing Director and Chief Executive Officer Brett Woods said:
We delivered a strong start to FY27, with production up 9% to 5.4 MMboe and sales revenue increasing 41% to $565 million for the quarter, which is the highest quarterly sales revenue result ever realised by Beach. The result reflects disciplined execution across our operations and stronger performance from the Waitsia Gas Plant, which achieved a record average monthly production rate of 219 TJ/day in August.
What’s next for Beach Energy?
Beach reaffirmed FY27 guidance for production (19.5–23.0 MMboe) and capital expenditure ($600–700 million). Looking ahead, management is focused on portfolio optimisation, progressing new gas contracts with flexible pricing, and advancing key projects such as the Waitsia Inlet Compression and Otway nearshore developments.
Exploration, drilling and infrastructure upgrades remain a priority, with near-term work aimed at supporting future production and extending asset life. The company continues to engage with regulators and partners as it advances its growth pipeline.
Beach Energy share price snapshot
Over the past 12 months, Beach Energy shares have fallen 22%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.
The post Beach Energy posts record Q1 sales revenue and higher production appeared first on The Motley Fool Australia.
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