- Beach Energy’s profits are up 86 per cent at $560 million for the FY19
- Oil production, free cash flow and earnings before interest, tax, depreciation and amortisation also reached record highs for the company
- Due to the success, additional funding of $1.5 billion will be invested in Beach’s projects and the target for barrels of oil produced has increased
- Beach Energy’s share price is up 6.48 per cent today, currently sitting at $1.92 apiece
Oil and gas explorers, Beach Energy have seen an 86 per cent increase in profits, setting a company record of $560 million.
Profits gained weren’t the only record beaten by the company in the 2019 financial year. Free cash flow and earnings before interest, tax, depreciation and amortisation (EBITDA) also reached all-time highs.
Free cash flow was up at $559 million and EBITDA jumped 80 per cent to $1.375 billion. EBITDA exceeded expectations, with initial guidance set at $1.1 – $1.2 billion.
Additionally, Beach met a record production of 29.4 million barrels of oil and achieved a net cash position two years ahead of schedule.
Managing Director of Beach Energy Matt Kay said “to say I am proud of what the Beach team has achieved would be a gross understatement”.
“We have delivered on every promise we made at last year’s investor briefing and the focus is now about investing in in the company’s high value growth assets,” Matt continued.
Upon the year of success, Beach has increased its five-year production outlook from 30-36 million barrels of oil to 34-40 million barrels of oil. It is expected this will produce free cash flow of $2.7 billion over the timeframe.
Thanks to a drilling success rate of 85 per cent, an additional $1.5 billion will be invested over the next five years at the company’s projects.
Beach Energy’s share price is up 6.48 per cent today, currently sitting at $1.92 apiece.