Here’s what’s been weighing on the Beach Energy share price this month…
The post The Beach Energy (ASX:BPT) share price is down 6% this last month. Here’s why appeared first on The Motley Fool Australia. –
The Beach Energy Ltd (ASX: BPT) share price hasn’t been doing well this last month. It’s been seesawing over the past 30 days but has ultimately fallen 6.3%.
Right now, the Beach Energy share price is $1.19, 0.42% lower than its closing price yesterday.
This time last month, shares in the oil and gas explorer and producer were trading for $1.27 apiece.
In that time, the market’s only heard one piece of price sensitive news out of Beach Energy. Let’s take a look to see if that’s been driving the Beach Energy share price lower.
What’s up with Beach Energy?
The Beach Energy share price isn’t having a great run despite releasing seemingly positive quarterly results last month.
The company’s results for the fourth quarter of financial year 2021 were released on 21 July.
Within them, Beach Energy reported its sales revenue had increased 7% quarter-on-quarter. It brought in $421 million in sales as its realised oil price gained 10%.
It came in just under its forecasted oil production for the financial year, well below its expected capital expenditure, and at the top end of its predicted underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA).
However, the apparently good results didn’t inspire a positive reaction from the market. The Beach Energy share price fell 3.2% on the day it released its quarterly results. Although, it did bounce 4.9% higher the following day.
Another factor likely playing into Beach Energy’s woes is the declining oil price.
Oil prices have recently fallen in response to an increase in US inventories. However, that’s only one piece of a complex puzzle.
According to reporting by Reuters, oil prices have fallen to their lowest point since May today as surging COVID-19 cases in Asia have resulted in a forecasted drop in demand. The strengthening US dollar is also pushing prices down as it makes purchasing oil more expensive for those trading in other currencies.
Beach Energy, and its fellow oil shares, are on watch today as a result.
Beach Energy share price snapshot
It’s been a tough year on the ASX for Beach Energy.
Its shares are currently trading for 35% less than they were at the start of 2021. They’ve also slipped 17% since this time last year.
Should you invest $1,000 in Beach Energy right now?
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.