Australia’s Beach take impairment charge on gas assets

Australian independent Beach Energy has reported an impairment charge to gas assets in Australia and New Zealand ahead of its 2023-24 results.

Beach announced a non-cash impairment of A$365mn-400mn ($241mn-264mn) before tax in its 2023-24 results to 30 June, which are due to be released on 12 August, because of a reassessment of its Bass basin assets in Australia and Taranaki basin project in New Zealand.

Beach has forecast an A$115mn-125mn impairment to the Taranaki site because of low gas flow rates at the Kupe South 9 development well, along with a A$250mn-275mn impairment in the Bass basin as its Trefoil, Bass, White Ibis and Yolla West discoveries did not meet minimum investment requirements, Beach said on 11 June.

The charges take Beach's total write-downs for 2023-24 to A$1.1bn, after it announced an A$721mn non-cash impairment against the value of its onshore Cooper basin assets because of increased operating costs at its joint venture with fellow Australian independent Santos.

By Tom Major