Citi sees risks in Australia's Beach Energy on Waitsia plant delay

Beach Energy

22/01/2025 20:34

** Citi sees execution risks in Australia's Beach Energy
 BPT.AX  as the first gas sale from its Waitsia plant is delayed
    ** Brokerage retains "sell" recommendation and price target
of A$1.3, a 12.2% discount to stock's last close of A$1.48
    ** Oil and gas producer targets first gas sale from Waitsia
plant in Western Australia in Q4 FY25, delayed from Q2 CY25
    ** Co's shares rose on upbeat Q2 FY25 production on
Wednesday
    ** Citi flags asymmetric risks in owning shares before
Waitsia has been fully commissioned
    ** Brokerage, however, expects higher earnings on stronger
pricing for Waitsia LNG
    ** 7 of 15 analysts rate the stock "buy" or higher, 3 "hold"
and 5 "sell" or lower; their median PT is A$1.46 – LSEG data
    ** Beach up 6.1% so far this year as of last close,
outperforming a 4.9% rise on the ASX Energy index  .AXEJ 

 (Reporting by Nikita Maria Jino in Bengaluru)
 ((Nikita.Jino@thomsonreuters.com;))