Perth, Feb 29, 2008 AEST (ABN Newswire) - Beach Petroleum (ASX:BPT) Reports a more than doubling in half year net profit after tax to A$58.8 million on the back of record revenue and significant gains in oil production have been announced by Beach Petroleum Limited.
The leading Australian energy group used the release today of its accounts for the latest half year to flag even greater growth expectations in the current second half of 2007-08.
Beach grew after tax earnings 148% for the six months to 31 December 2007 to
$58.8 million compared to $23.7 million in the corresponding 2006/2007 half-year.
Revenue was driven 30% higher to a record $340.0 million first half compared to
$261.9 million previously - with 16% higher sales proceeds contributing a record
$249.2 million of that total, up from $214.4 million in the six months to December 31, 2006.
Total oil and gas production was stable at 4,583 thousand barrels of oil equivalent (kboe) compared to 4,696 kboe previously.
A very strong 46% gain in oil production to 1,249 kbbl (858 kkbl previously), from the Cooper and Gippsland Basins, was offset by 16% lower gas production due mainly to a long maintenance shutdown at the Moomba processing plant in South Australia in December 2007..
Directors declared a steady interim dividend of 0.75 cents per share.
Strong underlying profitability
"Clearly, we have demonstrated the Company's strong production profile and equally a demonstrably strong underlying profitability in operations," Beach Petroleum Chairman, Mr Robert Kennedy, said today.
"This ethos has been built on well executed acquisitions, a suite of cashflow generating production assets and a self funded exploration success rate able to materially grow production and reserves.
"This success includes an ability to constrain costs in a tide of rising costs and to deliver projects within or under budget.
"Yet, while we have worked hard over the past two years to develop key major new projects which underpin this current financial strength and ability to grow, such projects will not in themselves define the Company's future completely."
Mr Kennedy said Beach had therefore embarked this year on its most extensive and largest scale exploration program ever, based on focused opportunities domestically and internationally best able to deliver diversity and upside and therefore growth in reserves, production and cash flow.
Beach Petroleum earlier today added to its acquisition war chest with the announcement of the A$123 million sale to the Sojitz Corporation of 10% of Beach's interest in the Basker, Manta, Gummy (BMG) oil, gas and condensate project in the Gippsland Basin.
The sale, which helped Beach realize further substantial profits on its investment in the project after an initial equally sized sale of a 10% interest last year to Itochu, means Beach retains a 30% exposure to the increasingly successful BMG operation project.
Cooper Oil Program "exceptional"
Beach Petroleum's Managing Director, Mr Reg Nelson, said the Company was particularly pleased by the performance of its core production assets, in particular Cooper oil exploration and production.
"The success of the Cooper oil program on many fronts during the period clearly demonstrates the exceptional economics of the region and emphasises why it will continue to play a significant place in Beach's future production profile," Mr Nelson said.
"Value-adds will come from the near-field exploration and development activities operated by Santos on behalf of the Cooper Basin Joint Venture; and the newer frontier exploration work operated by Beach on behalf of other joint ventures. Both operations are on track and producing results material for Beach."
Contact
Reg Nelson
Beach Petroleum
08 8338 2833
Ian Howarth
Farrington National
0407 822 319
Mark Lindh
Adelaide Equity
0414 551 361
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