Solid quarterly updates from the two remaining energy groups yesterday for the three months to March in the shape of the Kerry Stokes-dominated Beach Energy and LNG exporter and power operator, Origin.
Kerry Stokes’ 25% owned oil and gas arm, Beach Energy’s profits and revenues surged in the six months to December as it continued to benefit from the purchase of Lattice Energy from Origin Energy in late 2017 and the brief surge in prices in the last quarter.
First half production was below estimates but this was more than offset by higher pricing and sales revenue. Credit Suisse is encouraged by the successful Bauer appraisal well which may support an upgrade to reserves.
First-half results were ahead of estimates on the back of higher volumes and continued improvements in costs. Credit Suisse estimates the company could raise the dividend to $0.10 a share and keep gearing below 15% over the next five years.