Beach Energy posted a 10 per cent lift in quarterly production, locked in Ryan Stokes as chairman and says first gas from Waitsia remains on track in its latest report.
Beach Energy posted a 10 per cent lift in quarterly production, locked in Ryan Stokes as chairman and says first gas from Waitsia remains on track in its latest report.
The ASX-listed gas producer told the market it had made Mr Stokes- also chair of Seven Group Holdings- its permanent chairman after suspending its search to fill the role.
Mr Stokes was acting in the role since Beach's annual general meeting in 2023.
Lead independent director Peter Moore said the appointment provided clarity and stability for the company as it progressed through a period of significant change. He said the board of Beach remained majority independent.
However, Mr Stokes said it was his intention to search for an independent successor once Beach had achieved key Waitsia production, with first gas tipped for early 2025.
"It is a privilege to be appointed chairman of Beach, a company with a long and proud history of supporting the energy needs of Australia," Mr Stokes told the market.
Production from the Waitsia project in the Perth Basin- half owned by Mitsui & Co- was first slated for mid-last year but the developers faced hefty cost and timeline blowouts.
In April, Beach told the market its Waitsia stage two gas project will not produce this year and its share will cost about $200 million more than previously anticipated.
Today, Beach said pre-commissioning activities for its 250 terajoules/per Waitsia gas plant progressed over the quarter.
But Beach said its mechanical completion and introduction of fuel gas by the end of the period was not achieved, pointing to lower project productivity levels onsite.
The company said to support the schedule delivery, it was working with contractor Clough on the management and supervision of certain commissioning activities and was deploying more senior staff to help accelerate the stage.
It confirmed its total capital expenditure of $600 million to $650 million, being the range post-cost blowout, had remained unchanged since the last market update. The overall project costs $1.2 billion.
Chief executive Brett Woods said about 15 senior operations and commissioning specialists from the company would descend upon the Perth Basin project in its final stages.
He said once complete, the Waitsia gas plant would be a critical piece of gas infrastructure for the domestic market.
“To support the schedule delivery and to utilise Beach’s core skills, the Waitsia joint venture is finalising an arrangement with contractor Clough to increase representation and control of management and supervision of certain commissioning activities,” Mr Woods said.
For the quarter, Beach produced 5.2 million barrels of oil equivalent (MMboe), up 10 per cent from the previous quarter. Its sales revenue was down one per cent to $427 million from the previous quarter, with its realised oil price down 11 per cent.
Once producing, Beach and Mitsui will be able to export 50 per cent of its output from Waitsia until 2028, under a contentious exemption granted by the state government.
Beach’s shares last changed hands at $1.23 per share, up 2.46 per cent.
