Beach Energy Reports $982M Revenue with 13% Gas Price Rise in H1 FY26
Beach Energy reported a resilient first half of FY26, overcoming Cooper Basin floods to deliver solid earnings boosted by LNG cargoes and higher gas prices. The company’s operational safety and environmental efforts underpin a confident outlook as key projects ramp up.
- Production down 7% to 9.5 MMboe due to Cooper Basin floods
- Sales revenue hits $982 million, with $233 million from Waitsia LNG cargoes
- Average realised gas price rises 13% to $11.8/GJ
- Underlying EBITDA of $558 million and NPAT of $219 million
- Strong safety record and increased CO2 injection at Moomba CCS
Resilience Amidst Challenges
Beach Energy’s FY26 first half results reveal a company navigating operational hurdles with steady financial performance. Production dipped 7% to 9.5 million barrels of oil equivalent (MMboe), primarily due to flooding in the Cooper Basin, a key asset region. Despite this, the company generated $982 million in sales revenue, buoyed by four LNG cargoes from the Waitsia Gas Plant contributing $233 million and a 13% increase in average realised gas prices to $11.8 per gigajoule.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) stood at $558 million, with net profit after tax (NPAT) of $219 million. These figures reflect Beach’s ability to maintain profitability even as it manages flood recovery and project ramp-ups.
Operational Highlights and Safety Excellence
Safety and environmental stewardship remain at the forefront of Beach’s operations. The company achieved a 12-month recordable injury-free milestone across all operated sites and maintained over 99% reliability at its gas plants. Environmental efforts were underscored by the Moomba Carbon Capture and Storage (CCS) project, which injected 556,000 tonnes of CO2 equivalent during the half, a 63% increase year-on-year, surpassing 1.5 million tonnes since inception.
On the project front, the Waitsia Gas Plant transitioned successfully from construction to production, with first gas exports completed and ramp-up underway. Offshore, the first phase of the Equinox rig campaign concluded with safe well abandonments and exploration drilling, setting the stage for phase two later in the year. Meanwhile, onshore Cooper Basin drilling resumed robustly, with a 12-well oil appraisal campaign in the Western Flank achieving early success and a 10-well exploration campaign planned.
Financial Strength and Strategic Outlook
Beach Energy strengthened its balance sheet with $925 million in cash reserves and undrawn facilities, reducing net gearing to 12%. Free cash flow of $61 million was generated despite significant capital expenditure of $332 million in the half, reflecting disciplined financial management amid major project delivery.
The company declared an interim dividend of 1.0 cent per share, signalling confidence in ongoing cash generation. FY26 guidance remains steady, with production forecast between 19.7 and 22.0 MMboe and capital expenditure expected between $675 million and $775 million.
CEO Brett Woods emphasised Beach’s role as a critical domestic gas supplier, contributing over 18% of East Coast gas demand. He highlighted the importance of regulatory frameworks that balance domestic gas reservation policies with incentives for investment, ensuring long-term market stability and support for Australian jobs.
Looking Ahead
As Beach Energy advances its core projects, the second half of FY26 promises further operational milestones. The Waitsia Gas Plant aims to reach nameplate capacity, while drilling campaigns in the Otway Basin and Cooper Basin continue. The company’s focus on cost efficiency, safety, and environmental compliance positions it well to navigate market and regulatory dynamics in the year ahead.
Bottom Line?
Beach Energy’s solid half-year performance sets a strong foundation, but flood recovery and regulatory shifts will test its momentum in H2 FY26.
Questions in the middle?
- How will ongoing Cooper Basin flood recovery impact full-year production?
- What are the implications of potential domestic gas reservation policies on Beach’s investment plans?
- Can the ramp-up at Waitsia Gas Plant meet market expectations amid rising gas demand?
