Beach Energy: Perth Basin and Cooper Basin assets in $674m impairment

Matt Mckenzie
The Nightly
The Adelaide-based company revealed the impairment to the market on Thursday and shares dropped 9.5 per cent to $1.17 each just before the close.
The Adelaide-based company revealed the impairment to the market on Thursday and shares dropped 9.5 per cent to $1.17 each just before the close. Credit: Beach Energy

Beach Energy has copped a $674 million writedown thanks to lower sale prices and poorer than expected performance of Perth Basin assets.

The Adelaide-based company revealed the impairment to the market on Thursday and shares dropped 9.5 per cent to $1.17 each just before the close.

Lower oil and gas sale prices and flooding weighed on the company’s Cooper Basin assets, with a hit of about $487m before tax.

Sign up to The Nightly's newsletters.

Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.

Email Us
By continuing you agree to our Terms and Privacy Policy.

In the Perth Basin, Beach pointed the finger at higher capital costs for future development of the Waitsia project and reserve downgrades at Beharra Springs Deep 3. The Perth Basin writedown was $187m.

Beach boss Brett Woods labelled drilling results at the Beharra well — near Dongara — “disappointing” as the company shaved about 10 million barrels of oil off reserves at the field.

It comes after a write-down of up to $400m flagged in June last year.

The Waitsia joint venture with Mitsui & Co is expected to produce first gas before the end of September. About five LNG swap cargoes were sold through Waitsia’s deal with the North West Shelf Venture through the year, using gas from the local market.

“In the West, good progress was made with the final stages of the Waitsia Stage 2 project with construction of the Waitsia Gas Plant complete and commissioning well progressed as we work towards first gas during (the first quarter of the 2026 financial year),” Mr Woods told investors.

“Beach ended the financial year with strong results for the fourth quarter, material growth in production and revenue for full year FY25 and a strengthened balance sheet to pursue growth opportunities.”

Annual sales revenue lifted 13 per cent to $2 billion.

Beach Energy is partly owned by SGH, a major shareholder in Seven West Media.

Originally published on The Nightly

Comments

Latest Edition

The Nightly cover for 31-07-2025

Latest Edition

Edition Edition 31 July 202531 July 2025

Tomorrow is August 1. The PM now has just hours to talk to Trump before the Liberation Day tariffs take effect.