Beach Energy Ltd's stock plummeted 5.02% during intraday trading on Thursday, marking one of its weakest sessions in nearly a month.

The sharp decline followed the company's report of an 8% slide in half-year underlying net profit. The oil and gas producer attributed the profit drop to higher cost-of-sales pressures, including third-party purchases and non-cash inventory adjustments, coupled with a softer oil and liquids price environment. Furthermore, the company's board declared a significantly reduced interim dividend of 1.00 Australian cent per share, down from 3 cents a year earlier, which was noted by analysts as being 50% below market expectations.

The stock's decline was also in line with a broader sell-off in the Australian energy sector, as oil prices fell amid easing geopolitical tensions after the U.S. and Iran agreed to hold talks. Analysts also pointed to the company's growth outlook being below market expectations, contributing to the negative investor sentiment.