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
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.