Morningstar lowers Beach Energy earnings forecast on soft production outlook

Beach Energy

10/08/2026 24:01

** Morningstar lowers its FY27 earnings forecasts for Australian  oil and gas company Beach Energy BPT.AX after the company's FY27 production outlook came in below the investment research firm's estimates
** Reduces FY27 earnings per share forecast by 24% to A$0.18, saying production will be affected by maintenance shutdowns in the Otway and Perth basins, field decline, and the Waitsia gas plant in Western Australia operating at only 90% utilization rates
** On Thursday, Beach Energy reported a turnaround to an FY statutory net profit after tax of A$281.4 million ($198.81 million) from a loss of A$43.8 million a year earlier, but posted a 21% drop in underlying net profit after tax 
** Morningstar says co's FY underlying NPAT was 9% below its expectations due to higher operating costs
** However, at A$0.87, Morningstar finds shares undervalued, saying the market overly concerned about the potential cost to replace or grow reserves
** YTD, shares down 26.4% 


($1 = 1.4154 Australian dollars)

 (Reporting by Shruti Agarwal in Bengaluru)
 ((Shruti.Agarwal@thomsonreuters.com;))