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Highlights

  • Beach Energy is an onshore and offshore oil & gas production firm with five basins across Australia and New Zealand
  • In 1HFY24, BPT’s sales revenue increased by 16% YoY to AUD 941 million
  • Seven Group Holdings Limited has the maximum shareholding in the company with a shareholding of almost 30.02%

Established in 1961, Beach Energy Limited (ASX: BPT) is an Australia based oil and gas exploration company. The company has oil and gas production in five basins in New Zealand and Australia.

In the first half of the financial year 2024 (1HFY24), sales revenue of BPT jumped 16% YoY to AUD 941 million, underlying NPAT fell by 10% YoY to AUD 173 million and operating cash flow declined by 13% YoY to AUD 350 million. The period also recorded 11% YoY decrease in production due to lower gas nominations and 5% YoY rise in sales volume.

Top 10 shareholders of BPT

The top 10 shareholders of BPT have around 47.92% shareholding in the company. Seven Group Holdings Limited has the maximum shareholding in the company with a stake of almost 30.02%, followed by Macquarie Investment Management Global Ltd with a stake of around 4.45%.

Recent business update

Through an ASX update dated 18 June 2024, the company shared the outcomes of its strategic review, focusing on cost and capital reduction targets, expanding exposure to spot, global liquid markets, potential value chain adjacencies and assessing disciplined strategic acquisition.

On 24 April 2024, the company shared for the third quarter of FY24. During the quarter ended 31 March 2024, the company witnessed 4% QoQ rise in its production to 4.5MMboe, driven by increased output in the Taranaki and Otway basins. The period saw 21% QoQ fall in total sales volumes to 4,841kboe because of absence of one oil lifting and lower realised oil prices. This led to 28% QoQ fall in the sales revenue to AUD 392 million.

Outlook

In FY24, the company expects to report production in the range of 18-20 MMboe with capital expenditures towards the top end of AUD 900-1,000 million. While, in FY25, the company expects to achieve production of 17.5-21.5MMboe with planned capital expenditure of AUD 700-800 million.

The focus is on reducing capital and cost involving 30% reduction in headcount and AUD 100million in field costs, while enhancing market exposure and allocating 40-50% free cash flow for dividends.

Share performance of BPT

BPT shares closed 0.651% higher at AUD 1.545 apiece on 15 July 2024 with a market capitalisation of AUD 3.50 billion. In the last one year, BPT’s share price has jumped 2.66% and in the last one month, it has declined by nearly 3.13%.

The 52-week high of BPT is AUD 1.925, recorded on 5 April 2024, while the 52-week low is AUD 1.385, recorded on 10 July 2023.

BPT Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 15 July 2024. The reference data in this report has been partly sourced from REFINITIV.