Beach Energy stocks have fallen in early trade after it reported a 2.0 per cent drop in first half profit and cut its full-year production and earnings outlook.
The oil and gas exploration company on Tuesday reported a 10 per cent decrease in revenue to $948.3 million for the six months to December 31, with net profit dipping to $278.5 million on its reduced interest in the Victorian Otway asset.
Beach shares fell nine cents, or about 4.0 per cent, to a near three-month low of $2.28 at 1022 AEST.
Pro forma for the 40 per cent Otway sale, which completed late in FY19, underlying net profit was up 9.0 per cent.
However, the company also flagged a softer production outlook for the full year, with guidance dropping from 27 to 29 million million barrels of oil equivalent to 27 to 28 million.
Capital expenditure is now expected to rise to between $875 million to $950 million - up from a previously forecast $750 million to $850 million.
Underlying earnings is now tipped to soften to between $1.275 billion and $1.35 billion, from $1.25 billion and $1.4 billion.
Lower US dollar oil and liquids prices during the half hit revenue by $34.1 million in comparison to a year ago, with the average realised liquids price decreasing to $US66.34 a barrel, down $US4.31.
A lower exchange rate during the half, however, added $33.2 million to revenue.
Managing director Matt Kay said Beach's attention is focused on the back end of the year - in which the Victorian Otway drilling will ramp up.
"Our Victorian Otway drilling program has now commenced, with Black Watch-1 expected to reach target depth in early March," Mr Kay said on Tuesday.
"The Ocean Onyx rig is currently scheduled to arrive in March, to kick off our nine-well offshore drilling program with the Artisan-1 exploration well.
Mr Kay said the company will continue its our Western Flank exploration and appraisal campaign in the Cooper Basin with a view to increasing oil and gas production, and will also support facility upgrades at Port Bonython to deliver improved capacity.
Beach Energy directors declared an unchanged interim dividend of 1.0 cent per share, fully franked.
BEACH ENERGY TAKES H1 PROFIT HIT
* Revenue down 10pct to $948.3m
* Net profit down 2.0pct to $278.5m
* Interim dividend held at 1.0 cents per share, fully franked.