Well, good morning. I'm Ryan Stokes, Chairman of Beach Energy. To those of you in the room and those of you joining us, welcome to our 2026 Annual General Meeting. Today is 11th of November, Remembrance Day. At 11:00 A.M., wherever we are in the meeting, we will be paused to observe a minute's silence for Australians who served and for those who did not come home. A quorum is present, and I am pleased to declare the meeting open. A few housekeeping matters before we begin. Please put your phones on silent. In the unlikely event of an emergency, follow the instructions from the convention center staff. Recording and photography are not permitted, and the webcast will be available on our website after the meeting. Our compliance statements are set out in the presentation for those of you who wish to review them later.
I'm joined today by our Managing Director and Chief Executive Officer, Brett Woods, who will address you shortly, along with my fellow Directors, Shaun Gregory, Sally-Anne Layman, Bruce Clement, Sally Martin, and Richard Richards. Linzi Carr from our auditor, EY, is also in attendance and will be available to answer questions in relation to the 2026 financial accounts and remuneration report. We received several questions from shareholders in advance of the meeting, which I will address during the meeting. I want to start with why this company matters. Beach supplies around 1/5 of the gas used in Australia's East Coast, and all the gas we produce there goes to Australian customers. That gas powers Australian industry and supports Australian households. Gas is what keeps the system reliable by firming increasing volume of renewable energy in our electricity grid.
It is the ultimate form of stored energy to power our economy. The Australian government's Future Made in Australia policy needs more than gas. It needs a domestic gas sector that keeps investing to bring new supply to market. The domestic gas sector should be seen as an essential part of a Future Made in Australia policy, not merely an input to it. Our contribution goes beyond the gas we sell. Over the last five years, Beach has paid around AUD 2.3 billion in taxes and royalties. Over the same period, we have also invested approximately AUD 3.5 billion in risk capital to bring gas to market. We directly employ hundreds of people and support thousands of jobs indirectly from the Cooper Basin to the Otway and the Perth Basins.
At Moomba, we have now safely stored over 2.3 million tons of carbon dioxide that would have otherwise gone into the atmosphere. That contribution is too easily overlooked by those who deride this sector. It is financial through taxes, royalties, and capital we put at risk, and it is economic and social through jobs and gas that powers Australian homes and businesses. Our ambition is to become Australia's leading low-cost returns-focused energy producer. While we have made some progress on this strategy during this year, we recognize there is more we need to do, most of all in putting our balance sheet and capability to work. Safety is a foundation of our strategy. In FY 2026, for the first time since 2011, no one working on a Beach operation suffered a recordable injury during the year.
That is a result that matters most, and I thank everyone at Beach and our contractors who made it happen. We have taken operating costs out of the business and worked with our customers on new markets and more flexible contracts, lifting the price we receive for our gas. We are also seeing progress at Waitsia, operated by our partner Mitsui, which is now producing as it should after a slower start. Brett will take you through that in detail. But that progress does not yet make up for the shortfalls across the business. Production in FY 2026 was 2% lower than the year before, and we produced more than we added to our reserves. As an energy company, we are focused on growing our reserves, but that growth must also generate accretive returns, and that is why we divested Artisan instead of investing to develop the field.
It is also why we have invested in new regions for Beach, such as the Taroom Trough. Last month, we agreed to farm into Elixir's core Taroom acreage. On completion, Beach will operate a material position in this emerging basin. Replacing and growing our reserves with a focus on improving the quality of our assets is central to the task in front of us. To address that, we have rebuilt our pipeline of opportunities, low-cost onshore close to infrastructure we already own, near-field exploration that can refill our plants, and offshore prospects of real scale where we will bring in a partner to share the risk. We also look at acquisitions, but only where they deliver value to our shareholders. We will back opportunities that earn their return and say no to the ones that don't.
We want to control more of our own future, which is why operatorship mattered to us in the Taroom. Our share price, we believe it does not reflect the value potential of Beach. Our focus is to address that through execution and results. How we allocate your capital is how you should judge us. The order is simple. First, we fund what it takes to run the business safely and reliably. Then we invest in growth that clears our hurdle rates while keeping the balance sheet strong. Then we return surplus capital to shareholders through dividends. We are always balancing investing for growth with returning capital to you. The dividend for FY 2026 is AUD 0.03 a share. It was a deliberate choice because the board believes the best use of that capital today is to fund Beach's growth.
Every dollar we keep has to earn a return that justifies keeping it. If we can't, we will return it. With this approach, we can transform Beach into a high-quality business with higher returns. I want to now turn to policy, because it will determine how much of this country's gas is developed. Australia does not have a gas resource problem. It has a supply problem, and supply only comes from investment. We support the government's objective. Australia should have affordable gas, and this country has the resources to provide it. Frankly, that is what Beach has been delivering for decades. Where we differ is the mechanism to achieve that. The Domestic Gas Reservation Bill is now before the Senate, and its committee reports today. As drafted, it gives the government discretion to require LNG exporters to supply up to 20% of their exports to the domestic market.
Reservation moves gas, it does not make it, and discretion creates uncertainty that can stop new supply being developed. Forcing exporters to oversupply the domestic market undercuts companies that have always supplied it. That punishes the domestic gas sector, the very sector Future Made in Australia depends on. If there is to be a reservation, it should be rules-based, prospective, and sized to fill the gap in the wholesale demand, not to oversupply the whole market. The bill requires producers to deliver 110% of the market. That is a standard we usually reserve for the football field. That oversupply would deliver nothing more than short-term sugar hit in prices. It is not a lasting solution. The only way we get more gas to the market is to encourage investment, not mandate sales. Capital is mobile. It will not sit where returns can be legislated away.
Beach is a proud Australian company, but our obligation is to you, our shareholders. We will not commit your capital to new supply where the balance of risk and reward is not right. We also need policy settings that recognize the role of gas in keeping electricity reliable and affordable. As coal retires, the system needs power that is there when Australians demand it, not only when the weather allows it. The cheapest electron is not necessarily the cheapest power. We need to consider the full cost of keeping the lights on. The test for every energy policy decision should be simple. Does it deliver reliable, affordable energy for this generation and the next? Does it strengthen Australia's economic security and prosperity? Does it allow those who put their capital at risk to earn an acceptable return? We need the right settings to support investment into the supply Australia needs.
With that, I now hand over to our MD and CEO, Brett Woods, to take you through his address. Thank you.
Thank you, Ryan, and good morning, everyone. FY 2026 was a year of progress for Beach. Two years on from our strategic reset, we operated safely, strengthened our margins, generated strong positive free cash flow, and positioned the business for disciplined growth. Across the portfolio, we translated that strategy into execution. We supported the Waitsia ramp-up. We safely completed the offshore drilling and decommissioning campaign, restarting the Western Flank drilling after nearly three years, and further embedded an owner's mindset across our organization. I am very proud of what our people achieved during the year and look forward to sharing the highlights of the year with you this morning. Our headline results demonstrate the resilience of our operating model. Commercial execution and cost discipline helped offset production headwinds and supported strong cash generation during a period of significant project activity.
Production was 19.4 million barrels of oil equivalent, 2% below the prior year, primarily due to the flooding across the Cooper Basin and a slow ramp-up at Waitsia. However, all operated assets delivered above their FY 2026 targets, and Waitsia is performing strongly into FY 2026. Sales volumes were 22.9 million barrels of oil equivalent, reflecting lower production. Revenue was AUD 1.8 billion, supported by six LNG cargoes and a 7% increase in our average realized gas price to AUD 11.50 per gigajoule, reflecting the continued value of our targeted gas marketing strategy. Underlying EBITDA was AUD 1 billion, and pre-growth free cash flow was AUD 458 million, representing a free cash flow yield of around 44%. This was a strong cash outcome in the year that included major project delivery.
We finished the year with AUD 983 million of total liquidity and low gearing, giving Beach the financial flexibility to fund disciplined organic investment and assess value-accretive inorganic opportunities. As Ryan just mentioned, the board declared a fully franked full-year dividend of AUD 0.03 per share to balance shareholder returns with the need to preserve capital for our next phase of growth. Those financial outcomes were supported by tangible operational and commercial milestones across our portfolio, which are summarized in the screens behind me. In Western Australia, the Waitsia Gas Plant commenced production in December and achieved its nameplate capacity of 250 terajoules per day in April. We have worked very closely with the operator, Mitsui, to improve plant performance, and following the first statutory shutdown in early October, the plant is now producing reliably near nameplate capacity.
On the East Coast, we recommenced Western Flank drilling, completing nine development wells and achieving 100% success rate throughout the year. Moomba CCS continued to perform strongly. Around 1.3 million tons of CO₂ equivalent were captured and stored during this last financial year, taking the total safely injected since commissioning to approximately 2.3 million tons. We took disciplined steps to high-grade the portfolio and strengthen our future returns. The sale of our 60% operator interest in VIC/L35 monetized the Artisan discovery while preserving exposure through our production royalty, allowing more than AUD 500 million of near-term capital to be redirected to higher-margin opportunities. Our six LNG cargoes generated AUD 343 million of revenue, while domestic marketing broadened our customer base and lifted our realized pricing. We have also expanded and refreshed our inventory with acreage awards and a more recent farm-in agreed in the Taroom Trough.
We have better assessed and defined opportunities in the Perth Basin tight gas, Western Flank oil, and Otway Basin exploration. Together, these achievements demonstrate a stronger operating platform, a high-graded portfolio, and the financial capacity to pursue disciplined growth. I am proud of the efforts to reach this position. Delivering this level of activity required an unwavering focus on health and safety and the environment in FY 2026, and this was an outstanding year for Beach. Our team safely executed more than 1.5 million hours of work across complex offshore activity, active onshore drilling programs, and day-to-day operations. Beach was recordable injury-free for the year, delivering a Total Recordable Injury Frequency Rate of zero. This level of personal safety performance was last achieved in 2011 when Beach operated only in the Cooper Basin. We also recorded no tier one process safety events during the year and only one tier two event.
I thank all our people and our contractors for the planning, risk management, and disciplined frontline efforts behind this exceptional result. Unfortunately, as disclosed in our first quarter result, a contractor has sustained a hand injury in October, which required medical treatment, ending Beach's enviable record of 21 consecutive months of injury-free. We will never be complacent. Maintaining the highest safety standards will remain our first priority as our activity increases across our core hubs in FY 2027. The screens behind me show how the owner's mindset introduced through the strategic reset is now ingrained across Beach. An owner's mindset makes every asset team accountable for safe delivery, cost discipline, capital efficiency, and the value of every molecule, making decisions as owners of capital, not simply just the operator.
Operated field costs have reduced by 18% on an absolute basis since FY 2024, falling to AUD 244 million in FY 2026, despite the addition of our Waitsia Gas Plant operations from December. Unit operated field costs were AUD 11.40 per barrel of oil equivalent. This was slightly above our target, reflecting lower production from a slower ramp-up at Waitsia and the flood-related disruption across the Western Flank, but the underlying cost trajectory remains clear. Commercially, we increased exposure to spot and short-term gas markets when pricing was advantageous. As policy uncertainty affected the forward market, we shifted to more flexible contracts, attracting premium pricing, including agreements with manufacturers and data centers, and contracts linked to electricity spark spreads and LNG prices. Managing uncontracted volumes through these diverse routes to market supported a 29% increase in our average realized gas price since the first half of FY 2024.
Most importantly, this discipline is translating into cash outcomes. We have maintained a free cash flow breakeven oil price well below $30 per barrel and kept sustaining capital expenditure below our AUD 450 million per annum operating principle. This is the owner's mindset in practice: safe and reliable operations, lower structural cost, higher realized value, disciplined capital deployment, and strong cash generation. With a stronger operating model in place, as the screens show behind me, our priorities are clear. Execute multiple drilling campaigns to sustain the base business, upgrade and simplify our infrastructure, and expand the resource base for the next phase of growth. In the Cooper Basin Western Flank, we will commence an eight-well exploration campaign later this month that aims to unlock new exploration horizons and add production and extend that field life.
In the Cooper Basin joint venture, exploration, appraisal, and development drilling will continue, including appraisal of the Granite Wash opportunity. Alongside these drilling programs, we are upgrading and simplifying our infrastructure. The Moomba Central Optimisation Project will modernize and centralize facilities and power generation, improving recoveries and reducing field operating costs and sustaining capital requirements by approximately AUD 400 million net over the next life of the asset. At the Otway Gas Plant, we worked to optimize shutdowns and now expect to complete the 28-day integrity shutdown on a six-yearly cycle instead of four. At Waitsia, we are progressing inlet compression to improve and sustain production over the long- term. Then as we start to pivot towards growth, in Queensland's Taroom Trough, a two-well exploration campaign is currently underway. In the ATP 2081 and the Omega-led joint venture is working to develop the next phase of accelerated activity.
Our recent agreed farm into Elixir's core acreage will, on completion, give us an operated interest complement to our existing portfolio. Together, these positions give Beach exposure to an emerging gas and liquids play, close to established markets and infrastructure. In the Otway Basin, we've recently reached a final investment decision on a two-well nearshore exploration campaign targeting Enterprise East and Selje. In a success case, these two prospects will provide low-cost backfill through our existing Enterprise and Otway infrastructure. On the West Coast, two conventional exploration wells are planned in the Perth Basin, in the L1 and L2 permits, which will target near-field resources for potential future production and backfill through our existing infrastructure.
In the deeper water, in prospects T/30P and T/50P, we've reprocessed the 3D seismic and have applied advanced geophysical work, which has identified an inventory of very high-quality prospects, several within potential tieback distance of the existing Thylacine platform. We are high-grading this material opportunity and progressing a partnership to bring capability and capital, share risk, and retain upside. Interest is strong, and I hope to update you on this opportunity in due course. The Perth Basin tight gas inventory offers another important, longer-dated growth opportunity, with additional well and data improving our understanding of reservoir presence, distribution, and recoverability. Emerging regulatory reform in WA has provided the commercial impetus to renew our technical assessment of this discovered resource that were previously set aside. Any progression will remain subject to technical maturation, regulation, joint venture approval, and our normal capital allocation thresholds.
But large-scale discovered resources close to existing infrastructure is a clear strategic advantage. Together, these organic opportunities provide a disciplined pathway to growth across our core hubs. Our strong balance sheet also gives us the capacity to consider inorganic growth, but the standard is clear. Any opportunity must be value-creative, risk-balanced, and consistent with our disciplined capital allocation framework. As we look forward to FY 2027, we reiterate our production and CapEx guidance provided to the market in August. I'm pleased to note, however, that August was the strongest production month realized by Beach in over five years, which sees us well- positioned relative to guidance. To conclude, I would like to reinforce the value of Beach's proposition. We have material domestic energy portfolio across the East and West Coast, supported by strategic infrastructure, diverse routes to market, and a disciplined operating model. We have a strong balance sheet.
We will sustain the base business, progress organic growth across our core hubs, and assess acquisitions that extend reserve life and improve shareholder returns. Our approach will remain disciplined. Safety and operational excellence come first. Capital will be directed to opportunities that meet our return hurdles. We will continue to maximize the value of every molecule and preserve the financial flexibility required to grow through the cycle. Through domestic energy supply, jobs, investment, taxes, and royalties, we support Australia's energy security as we pursue our vision to become Australia's leading low-cost, returns-focused energy producer. I am confident in the platform we have built and excited about the opportunities ahead. On that note, I'll hand back to Ryan. Thank you.
Well, thank you, Brett. Ladies and gentlemen, we now turn to the formal items of business on the agenda. Two of your directors, Richard Richards and Bruce Clement, stand for re-election today, and both have the board's support. You will also vote on the remuneration report and on Brett's incentives. I know many of you have seen the value of your shares fall this year, and the board weighed that in setting Brett's incentives. Brett's short-term incentive reflects an outstanding safety year and real gains in cost and commercial performance balanced against lower production. His long-term incentive is tied to the returns you receive as shareholders. Beach has the assets, the people, and the balance sheet to grow. The job now is to prove it. I thank my fellow directors, Brett, and the whole Beach team, and you, our shareholders, for your support.
The notice of meeting dated 1 October 2026 has been made available to all shareholders in accordance with the Corporations Act and the Constitution, and is also available on Beach's website. The notice of meeting will be taken as read. All resolutions will be voted on by poll rather than a show of hands. I propose to put all resolutions to the meeting and then conduct a poll on all resolutions together at the end of the meeting. Shareholders and proxy holders would have received on registration a blue voting paper that provides for the holding of a poll on today's resolutions. I will provide more details shortly when the poll is to be conducted. All results will be determined by our share registry after the close of the meeting and then announced on the ASX. The company has received 1,473,000,000 proxy votes, representing 64.6% of valid securities voted.
As we move through each resolution today, the proxies received will be displayed on the screens. Proxies have been reviewed by our share registry manager, Boardroom Pty Limited. I intend to vote undirected proxies given to me as Chairman in favor of all resolutions. The first item of business is a receipt and consideration of the financial statements, sustainability statements, report, and reports of the directors and the auditor for the financial year ended 30 June 2026. There is no requirement to approve the financial statements, so I will not be putting a resolution to the meeting. We will now take some time to address any questions regarding the accounts or our operations generally, or if you have any questions for the company's auditor. I note that we did receive some questions prior to today's meetings, which we have addressed in Brett's and my speech.
Shareholders, this is your opportunity to ask questions you may have regarding the company, other than the subject of resolutions that will be put to the meeting shortly. There will be time for shareholders to ask any further questions they may have about those matters when the resolutions are put to the meeting. Ladies and gentlemen, I will now ask you to make your way to the microphones, which are located on my right and left in the front of the room. If you would like to ask a question of the company or its auditor, one of our staff will be there to introduce you. You will now need to show your blue or white card to ask the questions. In the interest of time, I will politely request that any questions which have already been dealt with not be asked again. Thank you. Who would like to go first? Yes, please.
Morning, Chair. My name is James Hahn. I represent the Australian Shareholders' Association, and I am holding 634,000 proxy votes. Thank you for Sally Martin for meeting with us to discuss our issues, which we have very few. Our intention is to vote for all motions. The one thing that we would like a little bit more clarity on, we notice your 2P reserves are in decline still, as they have been for a period of years, down to eight years. I appreciate you have explained to us how you intend to remedy this steady decline, but just a question. What would you consider a comfortable reserve level that you would aspire to? Let us express that in how many years going forward.
James, I appreciate your question. We are very focused on how we grow our reserves. We are also very focused on ensuring that that growth comes through an accretive investment. I mean, ideally, we would like to have well north of 10 years in reserves, and anything less than that is where we are more concerned around that outlook and want to address that. We want this company to have a strong future with a high-quality reserve book that will enable us to continue to support its production and ultimately growth. I would say it's not as theoretic as just naming a specific number. It's both the quality and the ability to produce those reserves, and also, I think, how we can turn that reserve into a return. That' s really what we are focused on now as part of the pivot in basin location.
For us, we would be looking to convert some of that 2C into 2P, but ultimately grow that reserve book to be north of 10 years.
Okay. Thank you.
Thank you.
Claire Astle. My question is for the auditor. In calculating Beach's restoration provision, it was assumed that it would be able to leave pipelines in situ, and the restoration activities would be able to be undertaken.
I am sorry to interrupt the question, but I am just conscious of time, and I know you have a very important question in relation to the reserve. In interest of the time frame, if we can just pause the meeting, and I will let you come back to restart your question that the auditor can answer. I just wanted to deal to Remembrance Day. Ladies and gentlemen, it is now 11:00 A.M. I will pause the meeting here. On this day in 1918, on the 11th hour, the guns fell silent on the Western Front. Every year since, Australians have stopped at this moment to remember those who have served our country in war, conflict, and peacekeeping, and those that did not come home. I invite you to stand if you are able, and please join in a minute's silence. Lest we forget. Thank you. Please be seated.
I am sorry, Claire, your question.
That is good. Okay. Claire Astle. My question is for the auditor. In calculating Beach's restoration provision, it was assumed that it would be able to leave pipelines in situ, and that restoration activities would be able to be undertaken efficiently as part of a campaign. Note 13 records that if Beach is required to fully remove subsea pipelines, this could add up to AUD 283 million to Beach's restoration provision, and that losing the assumed campaign cost savings could add a further AUD 47 million. This amounts to AUD 330 million, or roughly 1/3 of the total reported AUD 991.8 million restoration provision. Beach itself says full removal is the default requirement under current legislation. Your own key audit matter acknowledges uncertainty over whether the regulator will approve leaving pipelines in place. NOPSEMA has also never permitted pipelines to be left in situ.
What sufficient and appropriate audit evidence satisfied you that these assumptions were reasonable and that the accounts give a true and fair view without these costs included? Has Beach applied to NOPSEMA to leave pipelines in situ or received any indication that NOPSEMA would approve this?
Thank you. Linzi, you like to address the question?
Thank you. Thank you for the question, and thank you, Chair. Before responding, I would like to note that my role as the lead audit partner under the Corporations Act is to answer questions relating to the conduct of the audit, the content of the auditor's report, and the independence of the auditor only. My role as the independent auditor is to express an opinion on the financial report as a whole. As you rightly identified, restoration provisions have been identified by us as a key audit matter in our audit, and there is disclosure in note 13 and note 26 of the financial report, and that sets out that the provision is a significant estimate involving a lot of judgment and uncertainty.
On pages 143- 149 of the annual report, our auditor's report does explain why it is a key audit matter and outlines all of the procedures that we performed. This includes evaluating the company's processes and controls, assessing the work of internal and external specialists, challenging key assumptions, including timing of expenditure, inflation, discount rates, and what it will cost. And we involve our engineering specialists to assist us in the methodology and assumptions used by management. With respect to the in situ question in particular, there are several factors to consider. In May 2026, the Australian government issued guidance that recognizes that certain offshore infrastructure may be considered for in situ decommissioning, subject to approval and assessment. Pipelines are specifically identified in that guidance as infrastructure that may be considered under that framework, and the guidance also contemplates consideration of international industry practice and precedent.
In July 2026, the New Zealand government issued guidance that noted while petroleum infrastructure must be decommissioned by total removal, an exemption may be granted, including for buried offshore pipelines where removal would cause greater disturbance to the seabed and marine environment than leaving them in place. There is limited precedent in Australia, as noted, but there is significant international precedent, both in the North Sea and in other jurisdictions, and it's common in those jurisdictions for large-diameter offshore pipelines to remain in situ rather than be removed. The ultimate outcome will not be known until the decommissioning plans are submitted to and approved by the offshore regulator. Those plans will consider a range of factors, including environmental, safety, engineering, and ecological impacts, together with the comparative risks and benefits associated with each of these considerations. The disclosures in the financial report set that out in detail.
The accounting standards require that the provision reflects the best estimate of the expenditure to be required to settle the present obligation based on the information available at reporting date. That includes considering whether it is probable that the infrastructure will be required to be removed or not. The provision reflects the group's best assessment and the most likely outcome based on the current available information. The additional disclosures relating to the large-diameter offshore pipelines are intended to inform users of additional possible alternate outcomes and the associated uncertainties with that, noting that the outcomes will not be known for many years.
Thank you.
I'm just seeking some clarity. Does that mean that you have applied to NOPSEMA for leaving infrastructure in situ, pipelines in situ?
Is that really a question for the company about the view myself?
I mean, look, at this point in time, no, we haven't got any plans to abandon those wells and that infrastructure, and until we do, we won't be applying for that. But I think the auditor has answered the specific question in relation to why we treat that in the accounts the way we have and why they're comfortable to sign off. Thank you.
Thank you.
My question is for the board. Note 13 discloses a restoration provision of AUD 991.8 million, but provides limited information about how that liability is distributed across Beach's asset portfolio. Given the material differences in the age, infrastructure, operational status, and decommissioning requirements of Beach's assets, can the board explain the basis on which it considers the aggregation of these liabilities, provide shareholders with sufficient information to understand the nature and the extent of the group's restoration obligations? Will Beach consider providing a more granular breakdown by asset or project, identifying the principal assumptions underpinning those estimates?
Thank you for your question. I will hand to Anne-Marie, the CFO, to provide some context on that.
Thank you very much. Beach provide for restoration provisions and disclosures in accordance with the accounting standards. That doesn't require us to break down those individual components by asset, and at this time, we are not planning to do so. We do provide segmental information to provide you financials for each of the areas, but from a provisions perspective, that's not broken down as it is not required by the standards to do so. Obviously, as we get closer to abandonment, as you would have seen in the last year's financials, we had a large offshore campaign, and you were able to see through the current provision what that was for, and able to get that bit of additional information. But at this time, we just report in accordance with the accounting standards.
I anticipated that you might say something like that, so I just wanted to come back. The standard says that items can be grouped only when they are similar enough for one statement to meet those requirements. Can you explain how a mature offshore field and a newer onshore development are similar enough for that?
I might need to pass to my auditor for additional information or support here, but I guess what I would say is that you'd be able to argue the same thing for every other line in your balance sheet. Your receivables are going to be different for every different type of revenue that you've got, and we don't break that down by component either. The standard is reasonable and requires a certain level of disclosure, and Beach provide for that.
Yeah, I think.
Thank you.
Thank you. Thank you. Thank you. We now move to. More questions on the financial statements?
No, this is about a general question about operations, not financial statements. Do you want to take that one later or now?
Yeah, we'll have some time later. Or if you prefer now, we can deal with it now if you'd like. Yes.
Okay. Dr. Rob Phair. It's a question about emissions from the Karratha Gas Plant, which is, of course, run by Woodside, but Beach Energy, along with Mitsui, has joined as a third- party since December last year when gas from Waitsia began to be piped north and processed at the Karratha processing plant . The emissions from the Karratha Gas Plant reported by Woodside to the National Pollutant Inventory in 2024, 2025, which of course is before Waitsia gas started being piped up there, include 550,000 kg of benzene. That's 550 tons, which is, by international standards, a very high level of emissions. Benzene is a grade A1 human carcinogen with no absolute safe level of exposure. For example, in Europe, emissions of just 1 ton or more are required to be notified from any particular facility. 550 tons is hundreds of times more than that.
My question is, is Beach concerned about contributing to these very high emission levels of a dangerous toxic pollutant? Second, as I understand that advanced gas technology already provides the means to drastically reduce these benzene emission levels, are Beach or Woodside planning to do this? If not, why not?
To be fair, that's a question that's better addressed to the operator of the asset, the North West Shelf asset. From Beach's perspective, we're very comfortable to use the [algae] available and to be able to export that as LNG. They are required to comply with stringent operating requirements that ensure that it meets the regulator's standards. That's going to be an issue for North West Shelf Joint Venture and operator to address. But from Beach's perspective, no, we're not concerned, given the stringent requirements they operate to.
So, those levels are not of any interest to you? They don't concern you?
I think that's a I mean, the way you pose the question, I think it's a What we'd say, our focus is on finding opportunities to maximize value for the molecules that we produce. Pathway through LNG export is a logical one. We know that the North West Shelf Joint Venture operates to very stringent environmental conditions, and we're very comfortable that they meet that requirement as the regulator oversees that. So, that's not for us to really comment on. It's really for the operator to speak to and the regulator who oversees them.
So, just one follow-up. I understand there are requirements for the operator to drastically reduce the level of volatile organic compounds and other emissions from the facility in coming years. I take it that the operator will bear the costs then for that. Beach, in spite of piping gas there, won't be asked to contribute. Would that be right?
Directly, that's correct. Indirectly, that might come through [algae] cost, but fundamentally, that's going to be an issue for the North West Shelf Joint Venture.
Thank you.
Thank you. Thank you. We'll now move to the resolutions. Resolution one, this is a non-binding ordinary resolution in respect of remuneration report for the financial year ended 30 June 2026. Remuneration report is found in the 2026 annual report on pages 82- 96 and contains information about the remuneration arrangements of the non-executive directors and senior executives who are key management personnel. The proxies for this resolution are shown on the screens. I now move resolution one as set out in the notice of meeting and as previously seen on the screens behind me. Are there any questions or comments in relation to this motion? There are no questions. I move to the next resolution. Resolution part two, part A, is an ordinary resolution in relation to the re-election of Mr. Richard Richards as a Director.
Mr. Richards has served as a Director since 4th of February 2017 and was last re-elected to the office 14th of November 2023. He is a member of the Audit and Risk and Technical Committee. Mr. Richards is both a chartered accountant and admitted solicitor with over 30 years experience in business and complex financial structures, corporate governance, risk management, and audit. Further details of Mr. Richards' biography are set out in the notice of meeting. In accordance with the Constitution, he retires from the board at this meeting and, being eligible, offers himself for re-election. The board unanimously supports the re-election of Mr. Richards. The proxy results for this resolution are shown on the screens. I'll now put the resolution as set out in the notice of meeting and as previously seen on the screens behind me. Are there questions or comments in respect of this motion?
If there are no questions, I move to the next resolution. Resolution two, part B, is an ordinary resolution regarding the re-election of Mr. Bruce Clement as a Director. Mr. Clement has served as a Director since 8th of May 2023 and was elected to the board on 14th of November 2023. He is Chair of the Technical Committee and a member of the Audit and Risk Committee. Mr. Clement has over 40 years of domestic and international energy industry experience. He has managed oil and gas exploration, development, and production operations in Australia and Asia, and has delivered key projects across these regions and in the U.K. and U.S. He has extensive experience in the Perth Basin, including overseeing the discovery of the Waitsia Gas Field as the Managing Director of AWE. Further details of Mr. Clement's biography are set out in the notice of meeting.
In accordance with the Constitution, he retires from the board at this meeting and, being eligible, offers himself for re-election. The board unanimously supports the re-election of Mr. Clement. The proxy results for this resolution are shown on the screens. I now put the resolution as set out in the notice of meeting and as previously seen on the screens behind me. Are there any questions or comments in respect of this motion? If there are no questions, I move to the next resolution. The third resolution is an ordinary resolution relating to the issue of performance rights to the Managing Director and CEO, Brett Woods, under Beach's 2026 long-term incentive offer.
The board views Beach's long-term incentive plan and the performance-based conditions for vesting of the rights issued under it as an appropriate link between a portion of an executive's remuneration and the generation of long-term growth in shareholder value. Approval is now sought from shareholders for Mr. Woods' participation in the 2026 long-term incentive offer. A detailed explanation of the terms of the proposed long-term incentive offer to Mr. Woods are set out in the notice of meeting. The board considers that the grant of performance rights aligns Mr. Woods' remuneration with the interests of shareholders. The proxy results for this resolution are shown on the screens. I now put the resolution as set out in the notice of meeting and as previously seen on the screens behind me. Are there any questions or comments in respect of this motion?
If there are no questions, I move to the next resolution. The fourth resolution is an ordinary resolution relating to the issue of performance rights to the Managing Director and CEO, Brett Woods, under the Beach FY 2026 short-term incentive offer. Mr. Woods received a short-term incentive bonus for the achievement of various targets during the financial year ended 30 June 2026. Half of the bonus was paid in cash, and the other half will be paid in performance rights vesting as Beach shares in one to two years. This creates an appropriate link between Mr. Woods' remuneration and the generation of long-term growth in shareholder value. Approval is now sought from shareholders for the grant of performance rights to Mr. Woods under the FY 2026 short-term incentive offer.
A detailed explanation of the terms of the proposed grant of performance rights to Mr. Woods is set out in the notice of meeting. The board considers that the grant of performance rights aligns Mr. Woods' remuneration with the interests of shareholders. The proxy results for this resolution are shown on the screens. I will now put the resolution as set out in the notice of meeting and as previously seen on the screens behind me. Are there any questions or comments in relation to this motion? If there are no questions, I move to the next resolution. Oh, ladies and gentlemen, we will now conduct the poll on the resolution that is set out in the notice of meeting.
Firstly, if there is any person present who believes they are entitled to vote but are not registered to vote and does not hold a blue admission card, would you please raise your hand for assistance? You should have received your card at the time you registered with the Boardroom staff prior to the meeting. The people entitled to vote on this poll are shareholders, representatives, and attorneys of shareholders, and proxy holders who hold blue admission cards. On the reverse of your blue admission card is your voting paper. I now go through the procedure for filling in the voting papers. To cast your vote, you must mark the for, against, or abstain box beside each resolution. Proxy holders, a summary of proxy votes is attached to your voting paper, which details the voting instructions for each resolution. You should complete your voting paper in accordance with these instructions.
Please ensure you print your name where indicated and sign the voting paper. When you leave the room, please lodge your voting paper in one of the ballot boxes provided at the exits to ensure your votes are counted. There are refreshments waiting outside. If you require assistance, please raise your hand. Would you please indicate by raising your hand if you require more time to complete and lodge your voting paper? If everybody has now completed their voting, I now formally close the poll. Thank you. The final poll results will be collated and released to the ASX and posted on Beach's website when they are available later this afternoon. On behalf of the board, thank you for participating in today's AGM. With that, ladies and gentlemen, I declare the meeting formally closed. Thank you.