BG Group hit by $9bn impairment charge in fourth quarter

Oil and liquefied natural gas (LNG) group BG Group reported wider losses for the fourth quarter after taking nearly $9bn in impairment charges following the recent deterioration of commodity prices.

Net losses for the three-month period from continuing operations totalled $5.03bn, compared with a smaller loss of $1.07bn the year before.

The firm took a non-cash impairment charge of $8.9bn for the fourth quarter alone, mainly related to assumptions of future commodity prices.

Results excluding disposals and other one-offs such as write-downs showed a net profit of $915m, though this was still down 19% on the year before.

Revenue in the fourth quarter fell 19% to $4.40bn on the back of weaker commodity prices and lower volumes in both the upstream and LNG shipping and marketing divisions.

For the full year, business performance net profits fell 8% to $4.04bn. The full-year dividend was held steady at 28.75 cents per share.

“In the new environment we are well placed to manage the downturn as we are reaching the end of a high capital expenditure cycle and will continue to add further production in 2015 from Brazil and Australia,” said interim executive chairman Andrew Gould.

“We will proactively manage our costs, both capital and operating, to adapt to the new business circumstances.”

The stock was up 0.8% at 941.4p by 08:33.