Kerry Stokes-backed Beach Energy will lay off 30 per cent of its workforce and overhaul its executive leadership team in a major cost-cutting drive aimed at turning around the oil and gas producer’s performance amid heavy losses.
Beach Energy is using the Ocean Onyx drill rig to develop new natural gas wells off the coast of Victoria. In February, Beach posted a first-half loss of $345 million on the back of heavy writedowns on its oil and gas fields in the Cooper Basin and exploration assets. “To minimise the personal impact, we are committed to implementing the new structure as soon as possible.”Investors reacted positively to the news on Thursday, sending Beach Energy’s share price to its highest level in more than 18 months.
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