Today’s market opened with a new media release from Beach Energy Ltd [ASX:BPT], which saw its shares react favourably to half-year results for 2019.
At the time of writing Beach Energy’s share price is trading at $1.78, up 5.625%.
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Beach Energy’s share price shows enhanced profitability
BPT saw a strong half-year result, with sales revenue increasing by 147% to $955 million.
This was backed by a solid operational start to the year, as first half 2019FY saw a production of 15.2 MMboe and an increase in its 2019FY EBITDA (earnings before interest and tax, depreciation and amortization) guidance to $1.25–1.35 billion.
Beach Energy’s CEO Matt Kay highlighted the company’s portfolio:
‘These results highlight what beach is capable of delivering. I am extremely proud of what we have achieved in the first half of this year.
‘All our key financial metrics have improved, our net gearing was 13.5 per cent as at 31 December, 2018 and we are on track to be net cash by the end of Q3 FY19.
‘Our strong balance sheet position is in many ways thanks to the cash generation strength of the business. Our operating cash flow was up 175 per cent on the corresponding half to $479 million and we delivered $293 million of free cash flow.’
Beach Energy’s five-year plan on track
Beach energy is, according to Mr Kay, on track to deliver on its five-year plan.
‘These first six months have established excellent momentum for the year and we will look to build on that, most visibly with up to 92 wells expected to be drilled in the second half’, Mr Kay said.
On the topic of new ventures, Mr Kay said BPT had secured the La Bella gas field in the Otway Basin and aligned exploration interests with Santos.
Mr Kay also drew attention to the efforts made in reducing direct controllable operating costs, through cost and efficiency improvements.
Looking ahead Beach Energy is preparing for further potential growth.
For Money Morning
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