Beach Energy (BPT) -4.27%: 1H21 results released this morning that were weak and the stock has reacted accordingly. In short, we didn’t like the following: Underlying earnings -5% on this time last year thanks to a lower realised Oil price and it was a miss to expectations by around 3%. That flowed through to lower operating cash flows which fed into higher net debt., One of the reasons we liked BPT over and above others was their net cash position and the optionality into a depressed energy market this afforded them. That argument took somewhat of a hit today. Our inclination is to move away from BPT given the soft underbelly of this result, however we’ll ponder overnight.
MM are now neutral BPT at best following 1H21 result
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