Beach Energy Has Cut Its Spending By 20% As It Faces Plunging Oil Prices

Andrew Burton/Getty Images

Adelaide-based oil and gas explorer Beach Energy is cutting its capital spending by up to $55 million in response to plunging oil prices.

Beach reported a 17% drop in revenue to $194 million for the three months to the end of December.

Capital expenditure will be down 20% for the 2015 financial year to between $430 and $470 million.

The average Australian dollar received by Beach declined to $87 per barrel from $114, a 24% decrease compared to the previous quarter.

Beach has joined other Australian energy companies cutting overheads with the price of oil collapsing by 50% in 2014.

Big player Santos has cut its 2015 capital expenditure 25% to $2 billion.

However, Beach says the lower US dollar price for oil will partly be offset by a weaker Australian dollar and more volumes.

The company says it has cash reserves of $249 million and an undrawn debt facility of $300 million.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.