New Beach Energy boss promises to ‘liven things up’ after launching strategic review

Beach Energy’s new boss has launched a wide-ranging strategic review, promising to “liven things up” and look at all means of generating more value for shareholders. Brett Woods suggested to analysts on Monday that while Beach’s portfolio offered plenty of growth opportunities, everything was “on the table” as he referenced the failed merger talks between Santos and Woodside Energy. “Part of our strategic review is to look at all options,” said Mr Woods, a former Santos executive who joined Beach as chief executive from its Adelaide neighbour last month. “You’ve seen recently that Woodside’s transaction with Santos hasn’t gone ahead. I expect there’s a lot of other clever thinking going on next door to figure out how else to deliver value,” he said in a response to a question. “I am not in a rush to do anything else. I am going to be prudent.” However, “we’re going to liven things up and see what delivers the best value”. Mr Woods was speaking as Beach disclosed a 10 per cent fall in underlying interim net profit to $172.7 million after increased costs ate into higher sale volumes that lifted revenue 16 per cent to $941m. Bottom line earnings were savaged by $721m of previously-disclosed writedowns against Beach’s production interests in South Australia’s Cooper Basin and various exploration holdings, producing a statutory loss of $345.1m for the six months to December 31. Directors held the interim dividend steady at a fully franked 2¢ a share. Mr Woods said it was “an exciting time” for Beach, with growth projects led by the Waitsia gas venture in WA’s Mid West preparing to enter production and promising “material volumes of new gas supply for domestic and global markets”. “This near-term growth outlook and our sound financial position sets us apart from our peers,” he said. The review will include a sharp focus on costs to reduce operating expenses and prioritise development spending. “We need to position ourselves as a low-cost operator, we aren’t that at the moment,” Mr Woods said. “My mission is to focus the organisation, get it lean, get it fit.” He also flagged an increased focus on the Perth Basin, where Beach and partner Mitsui are readying Waitsia for commercial production by mid-2024 and stepping up exploration. Beach’s biggest shareholder is Seven Group Holdings, which controls Seven West Media, the owner of thewest.com.au and The West Australian. Shares in Beach rose more than 4 per cent to a 12-month high of $1.73 in early trading before closing up 5.5¢ at $1.71.