In its March Quarterly Report, Beach Energy (ASX:BPT) reported a significant fall in revenue. Beach Energy, which has its licenses primarily located along the Cooper Basin, reported revenue of $130.7m in the March quarter 2015, down from $231.3m from the previous corresponding period. The fall in revenue was attributed to seasonally lower gas demand and higher planned downtime at the Moomba gas processing facility. The 33 per cent fall in revenue also coincided with a fall in sales volume. The company sold 2.2m barrels of oil equivalent (MMboe) in the March quarter, down 23 per cent from the previous December quarter and down 5 per cent from the previous corresponding period last year. The company also “narrowed” its production guidance even further, to 8.9 to 9.2 MMboe from 8.9 to 9.4 MMboe.
Beach Energy also cut capital expenditures by 47 per cent to $79m to align with lower revenue. Cash reserves for the company came in at $165m and an undrawn debt facility of $150m. The company said it expects to cut capital expenditure even further into FY2016. The cash reserve and operating cash flows are expected to fully fund the reduced FY2016 program requirements. Billionaire Kerry Stokes spent $179m to become the company’s largest shareholder at a 13.8 per cent stake. A realised average oil price of A$71 per barrel for the quarter was achieved, compared to A$86.80 in the December quarter and A$124.80 in the previous corresponding period. Shares of Beach Energy are down 3.8c, or 3.19 per cent, at $1.15 per share around 12:44pm on Tuesday. BPT has fallen over 34 per cent in the last 12 months but has advanced over 10 per cent so far this year.