Karoon Energy, Australia's largest energy company, reduces its output forecast for 2026 due to US project delays; shares fall
Karoon Energy, based in Australia, lowered its 2026 production forecast on Tuesday due to a technical problem that delayed output at its Who Dat U.S. project until next summer. This sent its shares down by more than 15%.
The oil and natural gas producer expects the total production of the year to be between 7.2 and 8.2 million 'barrels equivalent oil (MMboe)', lower than its earlier forecast of 8.1 to 9.2 MMboe.
The shares of the company fell by as much as 15% to A$1.58, their lowest level since February.
The company announced that production?via the Who?Dat?E manifold will cease in 2026. Production is expected to resume in the second half of 2027.
Karoon lowered Who Dat’s production forecast from 2.1-2.5 MMboe (NRI) to 1.2-1.5 MMboe (NRI). It maintained its production expectations for its Brazil operations.
Cliff Man, CEO of ETF Shares, said that reduced production is expected to result in lower revenues until full production resumes late 2027.
Karoon stated that a remediation program is in the process of being developed to restore production. (Reporting and editing by Jasmeen ara Shaikh, Bengaluru)
(source: Reuters)
