Third quarter results released today by Adelaide-based Beach Energy show total sales volumes of oil, gas, LPG, LNG and more were down 21 per cent on the previous quarter, with the managing director attributing the decline to delays to the construction of its Waitsia Gas Plant.

The company sold 4841 kilo barrels of oil equivalent (kboe) of its products in the third quarter – down from 6094 kboe in the December quarter.

Sales of oil were particularly weaker, mainly due to one less oil lifting according to Beach.

Sales revenue was $392 million in the quarter – a 28 per cent decline – due to lower sales volumes and lower realised oil pricing, but partially offset by higher realised gas pricing.

The company’s CEO and managing director said the results were “overshadowed by the delay to construction of the Waitsia Gas Plant”. Situated in the Perth Basin, the project is an expansion of Beach’s existing presence at the West Australian site and sits on “one of the largest gas fields ever discovered onshore in Australia”.

“The ongoing emergence of quality issues at Waitsia during the pre-commissioning phase is disappointing, however, review of the contractor’s latest schedule is now complete and supports Beach’s guidance on capital expenditure and first gas,” Brett Woods said.

“In the Perth Basin, we concluded our operated drilling campaign with pleasing results, including a gas discovery at Redback Deep 1.

“Three gas discoveries and one gas development well from our operated campaign is an encouraging outcome which will provide valuable backfill volumes.”

Woods said regulatory approval was received during the quarter for its Otway Basin well site off the coast of South Australia, permitting final construction works.

“We remain on track to achieve our target of first gas before the end of this financial year, subject to operating regulatory approvals, meaning a valuable new gas supply source will be available for the East Coast,” he said.

Wood also said a strategic review was “progressing well” and once complete the company would be “well placed to pursue our progressive dividend policy and the next phase of growth”.

Beach has revised its full-year guidance to reflect year-to-date performance too, with production expected to be in the range of 18-18.5 million barrels of oil equivalent (MMboe), down from previous guidance of 18-20 MMboe.

Further, the company expects its capital expenditure will be in the upper end of the $900-1000 million guidance range.

Shares in Beach Energy are up 0.13 per cent to $1.60 at the time of writing.