Beach Energy Posts 20% EBITDA Growth and $657M Free Cash Flow in FY25

Strong Financial Performance Amid Strategic Transformation

Beach Energy Limited has delivered a compelling FY25 performance, underscoring its strategic transformation and operational resilience. The company reported a 16% increase in sales volumes, reaching 24.7 million barrels of oil equivalent (MMboe), alongside a 13% rise in sales revenue to $2.0 billion. Underlying EBITDA climbed 20% to $1.1 billion, while net profit after tax surged 32% to $451 million. These results reflect the successful execution of Beach’s strategic pillars focused on core hubs, high margins, and sustainable growth.

Cost efficiency was a standout feature, with the company achieving $130 million in cost and capital reductions. Unit field operating costs fell by 18%, and sustaining capital expenditure dropped by 20%, contributing to a significant reduction in the pre-growth free cash flow breakeven oil price to below US$30 per barrel. This financial discipline enabled Beach to declare a record fully franked final dividend of 6.0 cents per share, bringing total dividends for FY25 to 9.0 cents per share.

Operational Milestones and Safety Achievements

Operationally, Beach Energy marked several key milestones. Production increased 9% to 19.7 MMboe, driven by substantial gains in the Otway and Bass Basins, 64% and 91% respectively, thanks to new well connections and interventions. The completion and commissioning of the Waitsia Gas Plant in the Perth Basin is a pivotal development, expected to commence production ramp-up in Q1 FY26, supplying new gas volumes to both domestic and LNG markets.

Another highlight was the Moomba Carbon Capture and Storage (CCS) project, which surpassed expectations by safely injecting and storing over one million tonnes of CO2 equivalent since commissioning. This achievement positions Beach as a leader in Australia’s energy transition efforts.

Safety performance also reached a 14-year best, with no significant hydrocarbon spills reported. The company’s targeted safety campaigns and compliance initiatives have evidently strengthened operational discipline during a period of major organisational change.

Looking Ahead, Growth and Challenges in FY26

Beach’s outlook for FY26 remains cautiously optimistic. Production guidance is set between 19.7 and 22.0 MMboe, supported by ongoing drilling campaigns such as the Equinox rig campaign in the Otway Basin and a 10-well appraisal and development program in the Western Flank. Capital expenditure is forecast between $675 million and $775 million, with abandonment costs expected to rise due to rig campaign activities and flood remediation efforts.

Flooding in the Cooper Basin has introduced some operational uncertainty, but recovery plans are underway. The company also plans to supply 100% of its Otway, Bass, and Cooper Basin gas to the East Coast market, maintaining its significant market share. Meanwhile, the final stages of commissioning at Waitsia and exploration activities in the Perth Basin will be closely watched by investors.

Despite a non-cash impairment charge of $474 million after tax, mainly due to lower near-term commodity prices and reserve revisions, Beach Energy’s strong liquidity position and low net gearing of 10% provide a solid financial foundation for future growth.