Beach Energy predicted earnings before interest, tax, depreciation, and amortisation of at least $900 million arising from at least 26 million barrels of oil equivalent. But in April this year, the company downgraded its forecast revenue to $850 million.

Class actions practice leader at Shine Lawyers, Craig Allsopp, said that the firm would be ascertaining interest from investors in a case against Beach for “allegedly misleading the market with optimistic projections for a declining oil reserve in South Australia”.

“Investors must have been in disbelief as the company’s market capitalisation plummeted more than 40 per cent in 2021,” he said.

“Shine Lawyers is investigating whether Beach Energy knew or ought to have known about the decline in its Western Flank business at the time it issued its bullish earnings guidance last August.”

Slater and Gordon announced a similar class action investigation in July but have not yet launched proceedings against Beach Energy.

Both class actions concern the company’s announcements to the market about the performance and potential of their Western Flank oil assets in South Australia.

Eligible shareholders may have claims against Beach Energy in relation to losses incurred following the company’s announcements to the ASX on 15 February 2021 and 30 April 2021.

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Beach Energy announced that it expected FY21 earnings of up to $950 million, with the production of up to 27.5 million barrels of oil and reaffirmed its five-year outlook target before downgrading its earnings and oil barrel production and withdrawing its five-year outlook target completely.

This follows the news that there were a “record” number of class action lawsuits filed in the last financial year, as well as a2 milk being hit with two class actions last week and the announcement of a landmark climate change class action against the Australian government after a new report showed that climate and cyber class actions would continue to rise.