Beach Energy profits fall -11% in FY24 on back of higher costs in Cooper Basin

Beach Energy (ASX:BPT) has pointed to higher costs operating its Cooper Basin JV as a key reason why underlying profits fell -11% in FY24.

The company wrapped up the late financial year with $341M in profits, down from $385M in FY23. Earnings margins contracted by -7bps. Operating cash flow is down -17% to $774M.

At the same time – perhaps unsurprising – overall production volumes fell -7% to hit 18.2 million barrels of oil equivalent (MMboe) in FY24 vs FY23’s 19.5MMboe.

Alongside higher costs in the Cooper, Beach also pointed to lower Otway Basin customer nominations and “timing of liquids liftings” to explain the dip in NPAT. It also said this was offset by higher commodity prices and Waitsia-linked exports.

When it comes to what lies ahead, Beach headlined with its expectation east coast gas supply will have declined 30% in the early 2030’s. It said new investment support in gas supply is needed “urgently.” Forecasts of a crippling gas shortage are contested in some quarters.

However, it sees gas demand in WA growing by 15% by the early 2030’s, and Beach also predicts LNG demand to grow 40% by the same deadline, driven by increasing coal-to-gas switches.

BPT last traded at $1.43 before market open.