Beach Energy Surges with 37% Earnings Growth and Waitsia Gas Plant Milestone

Strong Financial Performance

Beach Energy Limited has delivered a compelling first half for FY25, reporting a 37% increase in underlying net profit after tax (NPAT) to $237 million, up from $173 million in the prior corresponding period. This earnings growth was underpinned by a 15% rise in production to 10.2 million barrels of oil equivalent (MMboe) and a 5% increase in sales revenue to $990 million. The company’s average realised gas and ethane price rose 18% to $10.5 per gigajoule, reflecting favourable market conditions and strategic sales arrangements.

Operational efficiencies and cost reduction initiatives contributed to lower cash costs, while the company maintained a disciplined capital expenditure program, spending $413 million in the half, down 31% from the previous year. This prudent financial management enabled Beach to generate pre-growth free cash flow exceeding 10 times the dividend payout, supporting a 50% increase in the fully franked interim dividend to 3.0 cents per share.

Key Project Milestones

Beach’s operational highlights include the transition of the Waitsia Gas Plant in Western Australia from construction to commissioning. The plant, with a capacity of 250 terajoules per day, has already supported four LNG swap cargoes generating $293 million in revenue at an average price of A$18.2/MMBtu. The company and its partner Mitsui continue to pursue additional swap cargoes ahead of the plant’s first sales gas target in Q4 FY25.

In Victoria’s Otway Basin, Beach restored the Otway Gas Plant’s well deliverability to nameplate capacity, achieving a 118% production increase to 3.4 MMboe. The largest ever offshore drilling campaign in the basin was completed, with new wells connected and strong ramp-up performance. The Moomba Carbon Capture and Storage (CCS) project in the Cooper Basin was successfully commissioned, exceeding injection ramp-up expectations and positioning Beach at the forefront of emissions reduction efforts.

Strategic Outlook and Growth Initiatives

Looking ahead, Beach has narrowed its FY25 production guidance to 18.5–20.5 MMboe, reflecting confidence in operational delivery across its portfolio. Capital expenditure guidance remains steady at $700–800 million, with growth capital focused on Waitsia Stage 2, Moomba CCS, and Offshore Gas Victoria activities. The company is preparing for a 10-well oil development and appraisal campaign on the Western Flank and plans to commence the Equinox rig campaign offshore Victoria in Q4 FY25.

Beach’s commitment to sustainability is evident in its ongoing emissions intensity reduction targets, supported by the Moomba CCS project and operational excellence initiatives. The company also reported strong health and safety performance, with zero Tier 1 and Tier 2 process safety events and only one recordable injury in the past 12 months.

Financial Strength and Market Position

Beach’s balance sheet remains robust, with net gearing reduced to 10% from 15% at June 2024 and net debt lowered to $389 million. Available liquidity stood at $631 million at the end of December 2024, providing ample capacity for disciplined growth and capital investment. The company’s free cash flow breakeven oil price is approximately US$30 per barrel, underscoring resilience amid commodity price volatility.

Overall, Beach Energy’s H1 FY25 results demonstrate a well-executed strategy combining operational growth, cost discipline, and sustainability leadership. The commissioning of the Waitsia Gas Plant and the ramp-up of the Moomba CCS project are pivotal developments that should drive value creation in the coming years.