BG Group has announced a 62% drop in pre-tax profit to US$715 million in 1Q15, down from US$1.9 billion in the corresponding period of last year.
The company’s revenue and other operating income was down 21% to 3.993 billion, compared to 5.061 billion in 1Q14. The results were attributed to a significant fall in realised commodity prices in its upstream segment, which were partially offset by higher delivered volumes in the LNG shipping and marketing segment.
Total earnings for 1Q14 stood at US$233 million, including a post-tax loss of US$332 million in respect of disposals, re-measurements and impairments. Total earnings in 1Q14 were US$1.102 billion, including a post-tax loss of US$50 million in respect of disposals, re-measurements and impairments.
Revenue and other operating income in BG’s LNG shipping and marketing segment was 13% higher in 1Q15 at US$2.237 billion, compared to US$1.972 in 1Q14. Overall delivered volumes increased 56%, with eight additional spot cargoes, seven cargoes from Queensland Curtis LNG (QCLNG), and six additional cargoes from long-term supply contracts in Equatorial Guinea, Nigeria and Trinidad and Tobago.
Strong LNG business
BG Group’s Chief Executive, Helge Lund, said: “We have had a solid operational start to the year. Our growth assets in Brazil and Australia continued to ramp up, with production in each more than doubling year-on-year. We also started up the Knarr FPSO in Norway, however we produced fewer barrels in the UK than expected due to shut-ins. Our LNG business performed strongly. We delivered more cargoes and in our North American gas marketing business we demonstrated our ability to move swiftly to capture the benefits of the rise in US gas prices due to cold weather.
Following the end of the quarter, the company announced an offer from Shell, which the Board has recommended to shareholders. The attractive offer is now subject to regulatory and shareholder approvals and completion is expected in early 2016. Until then, BG Group will operate independently and our teams remain focused on delivering our plans safely and efficiently.”
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/08052015/bg-group-pre-tax-profit-drops-714/