Beach Energy’s FY26 half-year results reveal steady sales volumes and a robust ramp-up at the Waitsia Gas Plant, supported by strong LNG cargo revenues and disciplined cost management.
- Waitsia Gas Plant achieves peak production of 165 TJ/day
- Four LNG cargoes generate $233 million in revenue
- Underlying NPAT declines 8% to $219 million amid higher costs
- Liquidity strengthened to $925 million with $300 million term loan secured
- Production and capital expenditure guidance for FY26 unchanged
Steady Performance Amid Operational Milestones
Beach Energy Limited has reported its FY26 half-year results, demonstrating resilience and operational progress despite a slight dip in production. The company’s total production fell 7% to 9.5 million barrels of oil equivalent (MMboe), while sales volumes edged up 3% to 12.7 MMboe. Underlying net profit after tax (NPAT) declined 8% to $219 million, reflecting higher costs associated with LNG cargoes and inventory movements, offset partially by cost discipline and foreign exchange gains.
The standout operational highlight was the ramp-up of the Waitsia Gas Plant in Western Australia, which reached a peak production rate of 165 terajoules per day (TJ/day) during the period. This facility is critical infrastructure for the West Coast gas market and is on track to approach its nameplate capacity of 250 TJ/day in the coming months. The delivery of four LNG cargoes from Waitsia contributed $233 million in revenue, underscoring the plant’s growing commercial impact.
Financial Strength and Strategic Investment
Beach Energy’s liquidity position was notably strengthened, with $925 million available at the half-year mark, supported by a newly secured $300 million term loan on competitive terms. This financial flexibility positions the company well to pursue its growth agenda across both East and West Coast gas markets. The company declared a fully franked interim dividend of 1.0 cent per share, reflecting confidence in its cash flow generation despite a capital-intensive period.
Capital expenditure for FY26 remains guided between $675 million and $775 million, with growth capital focused on major projects such as the completion of Waitsia Stage 2, the Equinox rig campaign in the Otway Basin, and ongoing exploration in the Cooper Basin joint venture. Production guidance remains steady at 19.7 to 22.0 MMboe for the full year, signalling operational stability amid ongoing development activities.
Operational Excellence and Safety
Beach Energy continues to prioritise health, safety, and environmental (HSE) performance, achieving over 12 months recordable injury-free across its operations and no Tier 1 or Tier 2 process safety events. This commitment to operational excellence is complemented by strong plant reliability, with over 99% uptime reported at key facilities including the Beharra Springs and Otway Gas Plants.
The company’s carbon capture and storage (CCS) initiatives also advanced, with the Moomba CCS facility safely injecting over 1.5 million tonnes of CO2 equivalent to date, supporting Beach’s emissions intensity reduction targets and broader sustainability goals.
Outlook and Market Positioning
Looking ahead, Beach Energy is focused on ramping up Waitsia Gas Plant production towards full capacity and progressing drilling campaigns across its core hubs. The company is actively supporting domestic energy security by supplying 100% of its East Coast gas production to local customers, representing 18% of total regional demand. Beach also advocates for domestic gas reservation policies to ensure supply adequacy and investment certainty, particularly for Australian manufacturers and power generation.
With ongoing exploration and appraisal programs, including a 12-well oil development campaign and a 10-well exploration campaign planned for the Western Flank, Beach is positioning itself to sustain and grow its reserves base. The company’s disciplined approach to cost management and capital allocation, combined with its strong balance sheet, underpins its strategy to deliver shareholder returns while supporting Australia’s evolving energy landscape.
Bottom Line?
Beach Energy’s solid half-year foundation sets the stage for a critical ramp-up phase and sustained growth in Australia’s gas markets.
Questions in the middle?
- How quickly will the Waitsia Gas Plant reach full nameplate capacity and impact earnings?
- What are the risks and timelines associated with the Equinox Phase 2 offshore developments?
- How will evolving domestic gas reservation policies affect Beach’s East Coast supply strategy?