Beach Energy: Market Loses Patience With Further Waitsia Cost Blowouts and Delays

Almost unbelievably, the Waitsia Stage 2 gas project has suffered yet another cost blowout and schedule slip. No-moat Beach’s share of capital expenditure increases by around a third to AUD 600 million–AUD 650 million against prior guidance of AUD 450 million–AUD 500 million. We assume AUD 650 million at the high end. First gas is now not anticipated until early calendar 2025, another six-month delay. More construction quality issues surfaced during precommissioning activities and despite the late stage, additional unspecified remedial works are required. Prior rectification works included rebuilding compressors and replacing elements of pipework.