🚀 ProPicks AI Hits +34.9% Return!Read Now

UPDATE 1-Beach Energy sells stake in Otway assets, trims guidance

Published 05/10/2018, 09:51 am
Updated 05/10/2018, 10:00 am
UPDATE 1-Beach Energy sells stake in Otway assets, trims guidance
BPT
-

(Adds chief executive comment, FY19 guidance)

Oct 5 (Reuters) - Oil and gas explorer Beach Energy Ltd BPT.AX said on Friday it will sell a 40 percent stake in its Victorian Otway gas assets for A$344 million ($243 million), and trimmed its earnings and production guidance.

Beach said the stake would be sold to a unit of Eyal Ofer's O.G. Energy, part of the privately held Ofer Global group of companies.

Following the sale, four new joint ventures will be formed, with Beach operating and having a 60 percent interest in each joint venture, the company said in a statement.

"We intended to sell down our interest and will be applying the sales proceeds to reduce debt and fund a portion of our future capital expenditure program," Chief Executive Matt Kay said.

In a separate statement, Beach cut its fiscal year 2019 production and core earnings guidance.

The company now expects to report earnings before interest, tax, depreciation and amortisation (EBITDA) between A$1.05 billion to A$1.15 billion, lower than previous guidance of A$1.1 billion to A$1.2 billion.

It expects to produce between 25 to 27 million barrels of oil equivalent (mmboe), down from previous guidance of between 26 to 28 mmboe.

($1 = 1.4132 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.