tiprankstipranks
Trending News
More News >
Beach Energy Limited (AU:BPT)
ASX:BPT

Beach Energy (BPT) AI Stock Analysis

Compare
89 Followers

Top Page

AU

Beach Energy

(Sydney:BPT)

Rating:56Neutral
Price Target:
AU$1.50
▲(12.78%Upside)
Beach Energy's overall stock score reflects mixed financial performance with challenges in revenue and profitability, offset by stable balance sheet indicators. Technical analysis suggests a lack of strong upward momentum. The valuation appears high, but the earnings call highlighted strong operational improvements and cost reductions. However, challenges with project delays and future expenditures pose risks.

Beach Energy (BPT) vs. iShares MSCI Australia ETF (EWA)

Beach Energy Business Overview & Revenue Model

Company DescriptionBeach Energy Limited operates as an oil and gas exploration and production company. It engages in the operated and non-operated, onshore and offshore, and oil and gas production in five producing basins across Australia and New Zealand. The company also explores, develops, produces, and transports hydrocarbons; and sells gas and liquid hydrocarbons. As of June 30, 2022, it had a production capacity of 21.8 million barrels of oil equivalent; and 283 million barrels of oil equivalent of proved and probable reserves. The company was formerly known as Beach Petroleum Limited and changed its name to Beach Energy Limited in December 2009. Beach Energy Limited was incorporated in 1961 and is headquartered in Adelaide, Australia.
How the Company Makes MoneyBeach Energy Limited makes money through the exploration, production, and sale of oil and natural gas. The company's revenue model is primarily driven by the production and sale of hydrocarbons, which are extracted from its operated and non-operated assets. Key revenue streams include the sale of crude oil, condensate, natural gas liquids, and natural gas to domestic and international markets. Beach Energy often enters into long-term gas supply contracts with major industrial customers, utility companies, and other energy providers, which provide stable and predictable cash flows. Additionally, the company may engage in strategic partnerships and joint ventures with other energy companies to optimize resource extraction and share risks. Beach Energy's earnings are influenced by factors such as commodity prices, production volumes, operational efficiencies, and regulatory developments in the regions where it operates.

Beach Energy Earnings Call Summary

Earnings Call Date:Feb 05, 2025
(Q2-2025)
|
% Change Since: -10.26%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The call reflected a strong performance in production growth, cost reductions, and financial metrics, with significant progress in strategic initiatives. However, it also acknowledged challenges related to Waitsia project delays and upcoming abandonment expenditures. The company's efforts in environmental and safety performance were highlighted, despite a minor setback due to a recordable injury.
Q2-2025 Updates
Positive Updates
Production and Revenue Growth
Production increased by 15% from the prior corresponding period. Sales revenue grew by 5% to approximately $1 billion, supported by LNG cargo deliveries.
Cost Reduction Achievements
The company achieved a 32% headcount reduction, surpassing their target of 30%. Unit field operating costs were reduced by 20%.
Improved Financial Metrics
Underlying EBITDA increased by 20% to $587 million, and underlying NPAT grew by 37% to $237 million. Operating cash flow was up 88% to $659 million.
Environmental and Safety Performance
Recorded no Tier 1 or Tier 2 process safety events and no environmental spills of more than one barrel, despite one recordable injury over Christmas.
Strong Liquidity and Gearing Position
Liquidity increased to $631 million, and net gearing reduced to 10%.
Successful Bass Basin Initiatives
Descaling initiatives resulted in an increase from 9 terajoules a day last financial year to over 25 terajoules a day in sales gas production.
Negative Updates
Waitsia Gas Plant Delays
Delays in the introduction of Xyris fuel gas into the Waitsia Gas Plant commissioning activities due to valve rectification issues.
Challenges in Maintaining Production Levels
Waitsia Gas Plant first sales gas target was maintained, but there is frustration over lengthy project delivery times.
Abandonment and Restoration Expenditures
Upcoming offshore abandonment activities as part of the Equinox campaign will impact cash flow.
Recordable Injury Incident
An employee's hand was pinched during maintenance activity, ending a record 12-month run of being recordable injury-free.
Company Guidance
In the Beach Energy Limited FY 2025 Half Year Results call, the company reported a 15% increase in production and a 5% rise in total sales revenue, reaching approximately $1 billion, while underlying EBITDA grew by 20% to $587 million and underlying NPAT surged by 37% to $237 million. The company highlighted a 20% reduction in unit field operating costs and a tenfold increase in pre-growth free cash flow to $431 million, alongside a reduction in net gearing to 10% and an increase in liquidity to $631 million. The Board declared a $0.03 per share fully franked interim dividend, reflecting a balanced approach amid strong cash flow and upcoming offshore abandonment activities. The guidance for FY 2025 was adjusted, narrowing production expectations to 18.5 million to 20.5 million barrels of oil equivalent and maintaining capital expenditure guidance at $700 million to $800 million.

Beach Energy Financial Statement Overview

Summary
Beach Energy is facing headwinds with declining revenue and profitability, leading to a negative net income. While the balance sheet remains stable, the cash flow statement highlights difficulties in maintaining free cash flow due to increased capital expenditures.
Income Statement
45
Neutral
Beach Energy Limited experienced a decline in revenue from the previous year, with a negative net profit margin due to a loss in net income. The EBIT and EBITDA margins are also negative, indicating operational challenges.
Balance Sheet
60
Neutral
The company has a moderate debt-to-equity ratio and a positive equity ratio, signifying a stable financial structure. However, the return on equity has turned negative, reflecting recent losses.
Cash Flow
50
Neutral
Operating cash flow remains positive, but free cash flow has decreased, indicating capital expenditure challenges. The operating cash flow to net income ratio suggests cash generation capability, but recent losses impact the free cash flow to net income ratio.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
1.89B1.77B1.65B1.77B1.56B1.73B
Gross Profit
600.40M471.30M578.60M735.00M519.30M629.10M
EBIT
556.80M146.30M559.70M723.30M510.70M617.70M
EBITDA
588.30M-593.90M1.01B1.11B876.00M1.16B
Net Income Common Stockholders
92.10M-475.30M400.80M500.80M316.50M500.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
250.70M172.00M218.90M254.50M126.70M109.90M
Total Assets
5.73B5.50B5.89B5.10B5.01B4.49B
Total Debt
676.60M794.70M408.50M120.30M277.10M118.80M
Net Debt
425.90M622.70M189.60M-134.20M150.40M8.90M
Total Liabilities
2.24B2.19B2.02B1.56B1.93B1.67B
Stockholders Equity
3.49B3.31B3.88B3.54B3.09B2.82B
Cash FlowFree Cash Flow
179.90M-318.90M-242.00M310.40M86.20M-46.20M
Operating Cash Flow
1.08B774.10M928.60M1.22B759.80M873.90M
Investing Cash Flow
-893.00M-1.08B-1.17B-897.80M-757.80M-899.20M
Financing Cash Flow
-167.50M260.60M205.50M-199.50M21.00M-39.40M

Beach Energy Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.33
Price Trends
50DMA
1.28
Positive
100DMA
1.35
Negative
200DMA
1.29
Positive
Market Momentum
MACD
0.02
Negative
RSI
55.28
Neutral
STOCH
55.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BPT, the sentiment is Positive. The current price of 1.33 is above the 20-day moving average (MA) of 1.32, above the 50-day MA of 1.28, and above the 200-day MA of 1.29, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 55.28 is Neutral, neither overbought nor oversold. The STOCH value of 55.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BPT.

Beach Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
57
Neutral
$7.22B3.15-4.49%5.63%0.82%-49.15%
AUBPT
56
Neutral
$3.03B32.922.70%3.83%6.43%
$838.80M6.7213.49%5.80%
$13.89B11.677.94%5.31%
AUWDS
74
Outperform
AU$43.51B8.0310.07%8.15%0.71%120.95%
AUSTX
45
Neutral
AU$487.37M57.35-4.01%801.92%-985.71%
AUTBN
35
Underperform
AU$378.78M-10.88%56.73%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:BPT
Beach Energy
1.33
-0.21
-13.41%
KRNGF
Karoon Energy Ltd
1.08
0.03
2.86%
STOSF
Santos Limited
4.16
-0.40
-8.77%
AU:STX
Strike Energy Limited
0.17
-0.05
-22.73%
AU:TBN
Tamboran Resources Limited
0.16
-0.02
-11.11%
AU:WDS
Woodside Energy Group
22.94
-2.22
-8.82%

Beach Energy Corporate Events

Beach Energy Director Acquires Additional Shares
Jun 4, 2025

Beach Energy Limited announced a change in the director’s interest, with Brett Woods acquiring 2,100 fully paid ordinary shares through the company’s employee salary sacrifice plan. This acquisition reflects a strategic move to align the director’s interests with the company’s performance, potentially strengthening stakeholder confidence and enhancing the company’s market positioning.

The most recent analyst rating on (AU:BPT) stock is a Hold with a A$1.25 price target. To see the full list of analyst forecasts on Beach Energy stock, see the AU:BPT Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Beach Energy
May 29, 2025

Beach Energy has announced that State Street Corporation and its subsidiaries have ceased to be substantial holders of its voting securities as of May 27, 2025. This change in substantial holding could impact Beach Energy’s shareholder structure and potentially influence its market dynamics and investor relations.

The most recent analyst rating on (AU:BPT) stock is a Hold with a A$1.25 price target. To see the full list of analyst forecasts on Beach Energy stock, see the AU:BPT Stock Forecast page.

Beach Energy Sees Major Shareholder Shift with State Street Acquisition
May 22, 2025

Beach Energy has announced a significant update regarding its substantial shareholders, revealing that State Street Corporation and its subsidiaries have acquired a substantial holding in the company. This acquisition signifies a notable shift in the company’s shareholder structure, potentially impacting its governance and strategic direction. The involvement of major financial institutions like State Street indicates increased institutional interest in Beach Energy, which could influence the company’s market positioning and stakeholder relationships.

The most recent analyst rating on (AU:BPT) stock is a Hold with a A$1.25 price target. To see the full list of analyst forecasts on Beach Energy stock, see the AU:BPT Stock Forecast page.

State Street Corporation Ceases Substantial Holding in Beach Energy
May 9, 2025

State Street Corporation and its subsidiaries have ceased to be substantial holders in Beach Energy Limited as of May 7, 2025. This change in holding could impact the company’s shareholder structure and potentially influence its market position, as State Street’s involvement in the company has altered.

Beach Energy Sees Shift in Substantial Holders
May 2, 2025

Beach Energy has announced a significant change in its substantial holders, with State Street Corporation and its subsidiaries acquiring a notable voting power in the company. This development indicates a potential shift in the company’s shareholder dynamics, which could influence its strategic direction and market positioning.

Beach Energy Announces Change in Substantial Holding Status
Apr 30, 2025

Beach Energy Limited has undergone changes in its substantial holding status, as indicated by the cessation of a substantial holder on April 28, 2025. This announcement reflects a shift in the company’s shareholder composition, potentially impacting its market dynamics and stakeholder relationships.

Beach Energy Reports Robust Q3 FY25 Performance Amid Challenges
Apr 29, 2025

Beach Energy Limited reported a stable production of 4.9 MMboe for the third quarter of FY25, with significant contributions from the Otway, Perth, and Bass Basins. The company achieved sales revenue of $552 million, bolstered by two additional Waitsia LNG cargoes. Despite a 5% decrease in sales volumes, Beach Energy enhanced its liquidity position, reducing net debt to $312 million and increasing available liquidity to $708 million. The Waitsia Stage 2 project is nearing completion, targeting first sales gas by mid-2025. However, a significant flood event in the Cooper Basin may defer production and delay development plans. The company remains focused on safety and operational efficiency, with no recorded safety incidents during the quarter.

Mitsubishi UFJ Financial Group Acquires Substantial Stake in Beach Energy
Apr 28, 2025

Mitsubishi UFJ Financial Group, Inc. has become a substantial holder in Beach Energy Limited, acquiring a significant voting power of 5.05% through its relevant interests in securities managed by Morgan Stanley and First Sentier Investors Holdings Pty Limited. This acquisition highlights Mitsubishi UFJ Financial Group’s strategic move to increase its influence in the energy sector, potentially impacting Beach Energy’s shareholder dynamics and market positioning.

Beach Energy Announces Change in Substantial Shareholder
Apr 24, 2025

Beach Energy Limited has announced a significant change in its shareholder structure, with a substantial holder acquiring a notable voting power in the company. This development could potentially impact the company’s governance and decision-making processes, influencing its strategic direction and potentially affecting stakeholders, including investors and partners.

Beach Energy Sees Shift in Substantial Holdings
Apr 24, 2025

Beach Energy Limited has announced a significant change in its substantial holdings, with First Sentier Investors RQI Pty Ltd and its associates, including Mitsubishi UFJ Financial Group, acquiring a substantial voting power in the company. This development indicates a strategic move by First Sentier Investors and its affiliates to strengthen their influence within Beach Energy, potentially impacting the company’s future governance and strategic direction.

Beach Energy Limited Announces Change in Substantial Holder Status
Apr 21, 2025

Beach Energy Limited has announced a change in its substantial holder status, as State Street Corporation and its subsidiaries, including SSGA Funds Management, Inc., have ceased to be substantial holders as of April 17, 2025. This change in substantial holding may impact Beach Energy’s shareholder structure and could influence the company’s strategic decisions and market perception, although specific implications for stakeholders were not detailed in the release.

Beach Energy Limited Announces Substantial Holding by State Street Corporation
Apr 21, 2025

Beach Energy Limited has announced a substantial holding update, detailing the voting power and relevant interests of State Street Corporation and its subsidiaries. The announcement highlights the control over voting rights and securities disposal by State Street and its affiliates, indicating a significant influence over Beach Energy’s shares. This development could impact the company’s market dynamics and stakeholder interests, given the substantial voting power held by these entities.

Beach Energy Limited Issues Performance Rights to Employees
Apr 7, 2025

Beach Energy Limited announced the issuance of 299,503 performance rights under an employee incentive scheme, which are unquoted and subject to transfer restrictions. This move is part of the company’s strategy to incentivize employees, potentially impacting its operational efficiency and aligning employee interests with company performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.