Australia’s largest onshore oil producer, Beach Energy, delivered FY16 results that demonstrate a resilient, profitable business underpinned by operational excellence and a focus on prudent financial management. Key FY16 highlights include: ? Underlying net profit after tax of $36 million; ? Record production of 9.7MMboe; ? Lower cost of operated production, with company cash flow br eakeven of US$26 bbl; ? Year-end cash of $199 million, up $28 million; ? Fifteenth consecutive year of dividends; fully franked dividend of 0.5 cps; ? Successful merger with Drillsearch, synergies of $40 million per annum; ? Exploration drilling success of 75%, five ne w field discoveries in Windorah Trough; ? Rationalisation of poor performing assets undertaken and continuing; and ? Net debt free and positioned for further growth with a disciplined and patient approach. Chief Executive Officer Matt Kay said Beach is positioned extremely well having delivered good progress against its strategic and operating objectives. “Our record production levels and reduced operating cost base deliver free cash flow and demonstrate Beach’s ongoing financial strength,” Mr Kay said. “We are net debt free and for the fifteenth consecut ive year we will pay a dividend to shareholders. “Our reduction in breakeven cash flow of over 60% demonstrates our ability to deliver business efficiency within Beach and to wo rk effectively with partners in the SACB and SWQ joint ventures. “We are expecting a further increase in production in FY17, and our operated 13 well program is designed to drive further growth from our assets.
overview and strategy
To be recognised nationally and internationally as an innovative and successful explorer, discoverer and developer of oil, gas and related energy resources; to be sought as a partner of choice by industry peers; and to deliver sustainable value to shareholders.
Safety takes precedence in all operations
Team oriented, quality work and sustainable performance
Care, respect, integrity, trust – a preferred partner and employer of choice
Initiative, creativity, innovation, responsibility, accountability and pride
Ethical and responsible conduct
To increase shareholders’ wealth through profitable investment in exploration, development and production.
Beach Energy is a long established oil and gas Exploration and Production Company. Based in Adelaide, South Australia, the Company has:
Oil and gas reserves of 92.7 million barrels of oil equivalent and contingent resources of 466.6 million barrels of oil equivalent (at 30 June 2013).
Annual production in FY13 of 8.0 million barrels of oil equivalent.
An active drilling program within a well balanced portfolio of tenements.