Beach Energy Reports 37% NPAT Rise and 15% Production Growth in H1 FY25

Operational Momentum Drives Production Growth

Beach Energy Limited (ASX: BPT) has delivered a strong first half performance for FY25, reporting a 15% increase in production to 10.2 million barrels of oil equivalent (MMboe). This growth was largely driven by a remarkable 118% surge in output from the Otway Basin following the successful connection of the Thylacine West and Enterprise fields, alongside a 67% boost in the Bass Basin attributed to effective wellbore interventions.

The Western Flank also contributed positively, maintaining strong reservoir performance and high facility uptime, which helped offset natural declines in oil fields. These operational improvements reflect the company’s focused efforts on its core hubs and high-margin assets.

Financial Strength and Strategic Progress

Underlying net profit after tax (NPAT) rose 37% to $237 million, supported by higher production volumes and the delivery of two Waitsia LNG swap cargoes that generated $139 million in revenue. Sales revenue increased 5% to $990 million, while underlying EBITDA climbed 20% to $587 million. Notably, the average realised gas price improved 18% to $10.5 per gigajoule, enhancing margins.

Beach Energy’s operating cash flow surged 88% to $659 million, enabling a significant reduction in net debt by 33% to $389 million and lowering net gearing to 10%, well below the company’s target range. The company also holds $631 million in cash reserves and undrawn committed facilities, strengthening its liquidity position.

Capital Discipline and Cost Efficiency

Capital expenditure for the half was $363 million, with sustaining capex at $195 million, comfortably within the FY25 target of less than $450 million. Field operating costs were tightly managed at $12.5 per barrel of oil equivalent, beating the target of approximately $14/boe. The company remains on track to achieve a free cash flow breakeven oil price of around US$30 per barrel for FY25, underscoring its cost discipline amid volatile commodity markets.

Safety, Environmental Initiatives, and Leadership Renewal

Beach Energy’s commitment to safety and environmental stewardship continues to deliver results, with a significant reduction in the total recordable injury frequency rate (TRIFR) to 0.6 from 6.0 in the prior corresponding period. The company reported no Tier 1 or Tier 2 process safety events or environmental spills during the half.

Major projects such as the Moomba Carbon Capture and Storage (CCS) project were successfully commissioned, already sequestering approximately 340,000 tonnes of CO2-equivalent in its first three months. The Waitsia Stage 2 gas plant commissioning is underway, targeting first sales gas in Q4 FY25.

Organisationally, Beach has executed a strategic reset with a more than 30% reduction in headcount and the appointment of a new executive leadership team, positioning the company for sustainable growth.

Outlook and Upcoming Catalysts

Looking ahead, Beach Energy expects an active second half with Offshore Gas Victoria activities commencing, including drilling the Hercules exploration well. The Western Flank will see a 10-well oil development and appraisal campaign focused on the McKinlay reservoir, alongside a refreshed exploration program for FY26.

The company has revised its FY25 production guidance slightly to 18.5–20.5 MMboe, narrowing the previous range, while maintaining capital expenditure guidance at $700–800 million. The Board’s declaration of a fully franked interim dividend of 3.0 cents per share, a 50% increase, reflects confidence in the company’s trajectory and cash flow generation.

CEO Brett Woods emphasised that the turnaround is underway, validating Beach’s strategic pillars of Core Hubs, High Margins, and Sustainable Growth, with the aspiration to become Australia’s leading domestic energy company.