PERTH (miningweekly.com) – Oil and gas producer Beach Energy has reported a 5% drop in revenue for the three months to March 31, despite an increase in production and sales volumes.
On the back of a 9% decrease in oil prices between December and March, Beach’s revenue fell from A$126.4-million to A$119.7-million.
However, production for the period was up 8% on the previous quarter, to 2.43-million barrels of oil equivalent, while sales volumes were also up by 5% over the same period, to 2.64-million barrels of oil equivalent.
The higher production and sales volumes related to the completion of the Drillsearch merger, which was finalised in March, as well as sustained oil production from Beach’s own assets.
Meanwhile, capital expenditure during the third quarter was down by 51% from the previous quarter, also dropping by 52% compared with the previous corresponding period, as capital management initiatives to counter the current environment of lower oil prices were implemented.
These initiatives included reduced field contractors, the re-tendering of various supply and service contracts, and field camp consolidations.
Beach earlier this week revealed that following the completion of the merger with Drillsearch, the company would save up to A$40-million a year through the integration of the two company’s operations.
The merged entity was expected to produce some 12.1-million barrels of oil equivalent a year and would have an expanded portfolio of oil, gas and infrastructure assets, as well as a market capitalisation of some A$1.1-billion.