Beach Energy (ASX: BPT) held its flag high with $514 million revenue at the end of its first quarter of Fiscal 2019.
The group has delivered a strong production performance recording a qoq increase of 7% to 7.8 MMboe underpinned by improved facility performance and strong seasonal gas demand. Eventually this has led the sales volumes to jump straight up to 8.3 Mmboe from 7.60 Mmboe in June quarter.
Whatsoever, the significant rise in the realised oil price has been the hero for a standout performance growth in Q1 FY19. For three month ended 30 September 2018, the realised oil price has increased as much as 6% to $109.9 per bbl.
The rise in sales revenue reflects quarter on quarter improvement of 9% that means upward shift from $ 471 million sales revenue in June 2018 quarter to $514 million revenue in September 2018 quarter.
Beach Energy Chief Executive Officer Matt Kay stated that Beach Energy recorded a 7% increase in production on the previous quarter, sales volumes were up 9% and, for the first time, company’s quarterly revenue hit more than half-a-billion dollars. He added higher output during a period of stronger commodity prices underpinned revenues to reach $514 million, up 9% on the prior quarter.
After such a strong start to the year full year FY19 production is now expected to touch the upper end of the guidance range of 25-27 Mmboe. Driven by this strong production outlook, FY19 underlying EBITDA is also estimated to reach $1.15 billion, an upper end of the guidance range $1.05 – 1.15 billion.
On business activities front, Beach Energy has given its consent to another drilling rig to reinforce the drilling operations at the Western Flank. The company has also shown its notable support to Santos’ 4th additional rig to the Cooper Basin joint venture. Meanwhile, company has reported high drilling success rate of 83%, that includes Beach’s participation in 29 wells during the quarter.
Commenting on Otway sale, Mr. Kay stated that company has entered into an agreement to sell a 40% stake in the Victorian Otway assets to O.G. Energy for $344 million cash. He added that the combination of higher production output, increased commodity prices and proceeds from the Otway Sale means Beach is on track to be debt free within 12 months.
Earlier at the time of the Lattice acquisition the management announced the target to achieve < 25% net gearing by the end of FY19. But since the start of Fiscal 2019 the growth in performance was such that the company has achieved 20% net gearing well before time, that means nine months prior to an expected target.
Looking five years ahead, the company targets production
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