Beach Energy today posted a fall in net profit for 2013 despite record revenues, with lower oil prices countering production increases.
Net profit after tax slipped to $153.65 million, down from $164.23 million in the 2012 financial year for the Adelaide-based oil and gas explorer and producer.
Sales revenue was up 13 per cent from $619 million, to a record $698 million, mainly due to higher oil sales volumes and favourable foreign currency movements, partly offset by lower prices.
Sales revenue from production was $83 million higher.
Beach reported sales volumes in line with the prior year, with increased sales volumes from higher oil production, offset by lower gas and ethane sales volumes driven by contracts expiring during the period.
The average realised oil price per unit fell to A$111 compared to A$115 in FY12, due to a lower US$ oil price with minimal change to the average AUD/USD exchange rate during the year.
The group will pay a final dividend of 2 cents per share, fully franked.
In a separate announcement, Beach said its El Salmiya-2 exploration project in Egypt had shown early success.
“Beach Energy and its partners have made a new oil discovery in Egypt with the El Salmiya-2 well in the Abu Sennan concession flowing at an initial rate of 3,530 barrels per day during drill stem testing,” the company said.
“The flow from the Kharita Formation also included 4.7 million standard cubic feet of gas.
“The Kharita Formation has a 68 metre oil column with the sandstone appearing to be of excellent quality.
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“Operator Kuwait Energy Egypt has estimated gross Proved and Probable Reserves of 18.5 million barrels of oil and 142 billion cubic feet of gas in the Kharita Formation only.
“An extended production test has commenced and will provide further data enabling confirmation of the operator’s initial reserve assessment.”
Beach said it believed further upside exists as the well has intersected three other zones with hydrocarbon shows.
Beach has a 22 per cent interest in Abu Sennan while Kuwait Energy has 50 per cent. The remaining 28 per cent stake is held by Dover Investments Ltd.
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