Australian oil and gas producer Beach Energy has reported a sharp rise in sales revenue as the worsening fears of global supplies due to the war in Ukraine are driving up commodity prices.
Adelaide-based Beach, whose largest shareholder is media billionaire Kerry Stokes’ Seven Group, on Tuesday announced its results for the three months to March 31, showing a 15 percent increase over the previous quarter to $ 458 million, beating market expectations.
The average price of Beach Energy’s oil sales rose 51 percent to $ 176 per barrel. barrel during the period, the company said, while its average gas price rose 10 percent to $ 8.4 per barrel. gigajoule.
However, Beach’s sales volumes fell 5 percent from the previous quarter to 5.2 million tons of oil equivalents. The result was lower than some forecasts, including RBC Capital Markets, which had expected 5.6 million tonnes.
The company attributed the decline to rain delays in the Cooper Basin and planned maintenance downtime in the Bass Basin.
“Quarterly production remained broadly stable despite weather challenges in the Cooper Basin and maintenance downtime in the Bass Basin,” said Beach’s acting CEO, Morné Engelbrecht.
“Happily, the western flank is performing better than our expectations from the beginning of the year, with a large stockpile of workover activity and development well connections supporting current production levels.”
Shares were 3.8 percent lower at $ 1.59 as the market sold strong energy shares Tuesday morning.