Insights

Beach Energy (ASX:BPT) share price on watch on FY21 earnings

Beach Energy’s oil production and profits fell in FY21.
The post Beach Energy (ASX:BPT) share price on watch on FY21 earnings appeared first on The Motley Fool Australia. –

The Beach Energy Ltd (ASX: BPT) share price will be on watch today after the oil and gas explorer and producer reported its results for financial year 2021 (FY21).

Beach Energy share price in focus after 36% drop in net profit after tax

A 36% fall in net profit after tax to $363 million
$953 million of underlying earnings before interest, tax, depreciate, and amortisation (EBITDA), within its previously forecasted range
Produced 25.6 million barrels of oil equivalent – 4% less than in FY20
Ended FY21 with $126.7 million of cash in the bank, 15% more than it did at the end of FY20.
Shareholders to receive a 1 cent final dividend

What happened in FY21 for Beach Energy?

FY21 brought good and bad times for Beach Energy and its share price.

Beach Energy made a final investment decision for the Western Australian Waitsia Gas Project Stage 2 in December. It also had exploration success in the Otway exploration program over FY21. It also purchased assets in the Cooper Basin for $83 million in November.

The company estimates its emissions over FY21 were 12% lower than those of FY18. It also announced it hopes to reach net zero scope 1 and 2 operated emissions by 2050.

It’s working towards FEED studies for the Moomba carbon capture and storage project, which is expected to remove 1.7 million tonnes of carbon from the atmosphere each year. Beach Energy owns 33% of the Moomba project.  

Additionally, FY21 was Beach Energy’s safest year on record.

However, the biggest news to come out of the company over the financial year just been was when it downgraded its Western Flank 2P reserves. The news saw the Beach Energy share price slip 24% and it hasn’t yet recovered.

The company stated the reserves’ lower volumes drove its FY21 oil production to decrease.

What did management say?

Beach Energy’s managing director, Matt Kay, commented that FY21 was challenging, but the company is in a good position to deliver on its gas growth projects. He said:

Beach had two exploration successes in the Victorian Otway, we delivered two value accretive bolt-on acquisitions to grow existing production hubs, and we reached FID on the Waitsia Gas Project Stage 2, bringing Beach closer to supplying gas into the global LNG market for the first time.

We also doubled the production deliverability at our Perth Basin facilities, and we are in the final stages of commissioning at the Kupe compression project, extending the life of this important asset in New Zealand.

The Offshore Otway campaign will progress throughout the year with first gas from the new Geographe development wells on track for mid-FY22 and all six development wells expected to be drilled by the end of FY22.

What’s next for Beach Energy?

Beach Energy’s chair, Glenn Davis, commented on the company’s future plans.

He said it will spend FY22 and FY23 investing into its existing assets with a focus on sustainability. Davis stated the company plans to deliver its Kupe compression and Geographe gas during the current financial year, its Thylacine gas in FY23, and its Waitsia gas in FY24.

The company’s production guidance for the current financial year is between 21 and 23 million barrels of oil equivalent.

Beach also expects to spend between $900 million and $1.1 billion over FY22.

Finally, it’s expecting its FY22 unit field operation cost to be between $11.50 and $12.50 per barrel of oil equivalent – ­up from $10.15 in FY21.

Beach Energy share price snapshot

The Beach Energy share price has fallen 34% year to date. It’s also 23% lower than it was this time last year.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 25% over the past 12 months.

The post Beach Energy (ASX:BPT) share price on watch on FY21 earnings appeared first on The Motley Fool Australia.

Should you invest $1,000 in Beach Energy right now?

Before you consider Beach Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Beach Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Beach Energy (ASX:BPT) share price is down 6% this last month. Here’s why
5 things to watch on the ASX 200 on Tuesday

43% surge: ASX 200 shares that could rake it in this year

Here are the best and worst performing ASX 200 energy shares of 2021

5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!