Australia's Beach Energy slips, Citi keeps 'sell' rating on outlook

Beach Energy

07/08/2026 01:25

Updates
** Shares of Australia's Beach Energy BPT.AX fall as much as 0.9% to A$0.878
** Brokerage Citi maintains "sell" rating and A$0.80 price target  
** Says energy company faces growing uncertainty over its growth outlook, shareholder returns and domestic gas policy settings
** Cuts its FY27 core net profit forecast for the oil and gas producer by 13%, citing lower production and higher depreciation costs
** BPT on Thursday swung to an annual profit and forecast softer production in FY27    
** Citi notes the company still needs to demonstrate consistent operational performance, including at the Waitsia project
** Adds BPT's new capital management framework has increased uncertainty around shareholder returns, leaving investors with less visibility on future dividends as management focuses on reinvestment opportunities
** Of 12 analysts tracking the stock, one rates it "buy" or higher, six "hold" and five "sell" or lower; their median PT is A$0.85, LSEG-compiled data shows
** Stock down 24.9% YTD

 (Reporting by Roshan Thomas & Rajasik Mukherjee in Bengaluru)
 ((Roshan.Thomas@thomsonreuters.com;))