Beach Petroleum Sees Record Results for 2007
Beach Petroleum has generated a record after tax profit of $A103.3 million for the financial year ended June 30, 2007, more than double the previous year’s result earned from revenue of $A566.8 million, more than three times higher than in the year ended June 30, 2006.
The result was generated from record production of 9.4 million barrels of oil equivalent (oil and gas combined) which was boosted by the first production from the Basker-Manta-Gummy field in Bass Strait and the Tipton West coal seam methane project in south west Queensland.
During the financial year total sales increased seven fold to 10.55 million barrels of oil equivalent (boe) with oil and gas sales revenue of $472 million.
Beach Petroleum will pay a 1.0 cent per share final dividend based on the record financial results. This adds to the 0.75 cents per share interim payment to bring the annual dividend to 1.75 cents per share, a 16.7% increase compared to the annual dividend rate of the previous year.
The record year was highlighted by a more than doubling of proven and probable (2P) reserves from 36.2 million barrels of oil equivalent (mmboe) to 89.6 mmboe.
At the heart of Beach Petroleum’s powerful performance during the financial year was the Company’s admittance to the S&P/ASX 200 Index, marking a year of growth and the Company’s transformation into a top Australian mid-cap petroleum explorer and producer and a seven fold increase in petroleum product sales.
The rapid increase in sales volumes was primarily driven by the acquisition of the Delhi Petroleum group of companies which gave Beach Petroleum an average 20 per cent interest in the Cooper basin oil and gas production assets.
Also making a material impact on the results to June 30 was the sale of a 10% interest in the BMG asset for a record $123 million.
For the second year in succession Beach Petroleum was named as a major player in Forbes magazine’s Asia Top 200 companies “Under a Billion”.
Beach Petroleum delivered revenue of $567 million for the financial year to 30 June, compared with $163 million for the financial year ended 30 June 2006, an increase of 248%, the Company’s eighth consecutive yearly revenue increase.
The dividend payment is Beach Petroleum’s 12th successive dividend payment since the Company resumed paying dividends in 2002.
Beach Petroleum Chairman, Bob Kennedy said "Beach Petroleum is now recognized both nationally and internationally as a company that has the technical ability and business acumen to recognize opportunities both at a corporate level and in terms of exploration.
"The year began with a flush new oilfield discovery at Callawonga. The Cooper-Eromanga basin delivered yet again.
"Delhi Petroleum is delivering value to Beach Petroleum and the company is the second largest reserves owner and producer in the Cooper-Eromanga, after Santos.
"Add to this the rising production from our other principal assets, the Basker-Manta oilfields offshore from Victoria and the Tipton West coal seam gas fields in eastern Queensland. The result is strength, diversity and growth potential.
Beach Petroleum Managing Director, Reg Nelson, said "The company’s Proved and Probable (2P) reserves at the end of the financial year was 90 million boe, compared to 36 million boe for the previous financial year.
"In the national context, the company ranks fourth in ASX-listed companies in terms of 2P reserves, after Woodside Petroleum, Santos and Origin Energy.
"At annual production rates of around 10 million boe, the reserves to production ratio equates to nine years."
Mr Nelson added that "The outlook for Beach production remains strong.
"Without including any new discoveries, we expect that over the next three years Beach Petroleum’s annual production can be maintained at 10 million boe or more, based on existing projects. "Although booked reserves may fluctuate at any particular reporting date, over the next three years it is reasonable to expect that coal seam gas reserves will have increased at Tipton West, development of the gas-condensate resource at BMG will have been sanctioned and that considerable oil reserves will have been delineated through the Cooper Oil Program and in Beach Petroleum’s operated areas in the Cooper-Eromanga basins.
"Overall, it is reasonable to expect that these developments alone should help maintain production while building the reserves base in a material sense,"
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- Beach Energy Gains Majority Control of Adelaide Energy (Nov 10)