Oil and gas company Beach Energy has reported increased earnings and cashflow on rising gas prices and high demand, giving it a war chest to expand.
The company on Monday reported an underlying net profit after tax (NPAT) of $504 million, up 39 per cent, on higher prices and revenue, reduced depreciation from lower production, and "minimal" exploration expensed.
Total revenue rose 13 per cent to $1.8 billion and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 17 per cent to $1.1 billion.
"We ended the year with total available liquidity of $765 million and $752 million in free cash flow pre-growth expenditure generated," chief executive officer Morne Engelbrecht said.
He said the stronger financial position leaves Beach "in great shape" to deliver current growth projects and balance longer-term plans with capital management.
Adelaide-headquartered Beach operates across Australia and New Zealand and plans to enter the global liquefied natural gas market after last week inking an LNG supply deal with BP Singapore.
In the Otway Basin, offshore South Australia and Victoria, the explorer's seven-well drilling campaign was successfully completed and delivered one new gas discovery at the Artisan field and six successful development wells in the Geographe and Thylacine fields.
Geographe 4 and 5 were connected to the Otway Gas Plant and contributed to a 47 per cent increase in Otway Basin production, and the company said connection of the final four wells is targeted for mid-2023.
In the Perth Basin, the "transformational" Waitsia Stage 2 project commenced with good progress made on plant construction and development well drilling.
"Another key milestone was the recent signing of the LNG Sale and Purchase Agreement which will see BP purchase all 3.75 million tonnes of Waitsia Stage 2 LNG," Mr Engelbrecht said.
Beach said it was committed to emissions reduction, targeting a 35 per cent reduction in emissions intensity by 2030 and an aspiration to reach net zero emissions by 2050.
"A key plank of our emissions reduction journey is the globally significant Moomba CCS (carbon capture and storage) project," Mr Engelbrecht said.
Santos and joint venture partner Beach in November announced their decision to go ahead with Moomba.
"We are targeting first carbon injection in 2024," Mr Engelbrecht said.
Beach declared a two cent final dividend, unchanged from a year earlier.
