BPT -15.04%: the gas company announced the 3rd delay and cost increase to stage 2 of their Waitsia joint venture that was due to come on in just a few months. Capex expectations have been increased by $150m, or ~30%, just 1Q out from when the market was pricing in first production. Beach has blamed non-compliant valves & fire system issues for the cost increase and delays with manpower redirected to the remedial work required. This set back comes shortly after Beach announced cost-cutting targets, aiming to reduce the headcount by 30% and drive operational improvements. BPT shares closed near 3-year highs on Friday, today’s release showing plenty of cracks in their near-term outlook making it hard to justify the recent strength.
MM is neutral BPT
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