Beach Energy, an Australian oil and gas company, has announced a net loss of AUD 345.1 million (USD 224.9 million) for the six months ending in December. This marks a significant decline from the AUD 207.2 million profit reported during the same period the previous year. The loss is largely attributed to a large impairment charge taken against Beach Energy’s oil and gas fields in the Cooper Basin and some exploration assets.
After announcing its intention to impair its assets by AUD 505 million after tax, the company was bracing for a weak net profit outcome. The majority of the one-time charge, AUD 328 million, was related to its active fields in the Cooper Basin. This increase in joint-venture spending and operating costs drove the impairment charge.
Despite the loss, Beach Energy’s group revenue increased by 15% to AUD 953.9 million. This was primarily due to the sale of its first liquefied natural gas cargo and a one-off condensate cargo. The average oil price for Beach’s output in the first half was AUD 142.0 per barrel, slightly lower than the previous year’s AUD 148.1 per barrel.
Beach Energy’s CEO, Brett Woods, expressed optimism about the company’s future prospects. He highlighted upcoming gas supply opportunities, including Kupe, Enterprise, Waitsia, and Thylacine West, which he believes will contribute to an exciting year ahead.