Surging oil prices has given Beach Energy (ASX: BPT) an earnings boost in the first-half, with net profits up 66% to $213m.
Financials at a glance:
Revenue of $797.4m, up 10%
Earnings per share of 9.34 cents, up 66%
Realised oil price of $113.6 a barrel
65% margin on sales revenue vs. 63% a year ago
Interim dividend of 1 cent per share
Beach Energy shares will go ex-dividend on Friday, 25 February. The dividend represents a yield of 0.6% at today’s open price ($1.52).
Morgans was expecting a much stronger first-half as a result of higher oil prices. However, flagged that production declines could lead to lower earnings than the previous half.
Morgans was expecting first-half earnings per share of 9 cents.
Beach Energy Acting CEO Morné Engelbrecht said the first-half saw steady progress across major projects in the Perth and Victorian Otway basins, and the Kupe gas plant.
“Delivering on this phase of our growth means we are making progress towards our production target of 28 MMboe in FY24.”
“We had previously stated FY22 was going to be a pivotal year in Beach’s transformation, and I’m proud of what we have achieved so far.”
Beach Energy will have a busy second-half across each of its six production hubs across Australia.
Victoria Otway Basin: Final investment decision in second-half for onshore pipeline project, investigate further nearshore opportunities
Perth Basin: Exploration underway, Waitsia Gas Project Stage 2 in construction phase
West Flank Oil and Gas: FY22 drilling campaign underway
Cooper Basin JV: Exploration of 35-40 wells, execute on Mooba Carbon Capture and Storage project
Bass Basin: Progress planning for exploration opportunities
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