BG lifts production guidance as third-quarter earnings drop

BG Group posted a 37% drop in third-quarter core earnings but raised its full-year production guidance as output increased sharply in the period.

Oil & Gas Producers

8,043.72

15:45 15/11/24

1.32%

105.17

Earnings before interest, tax, depreciation and amortisation came to $1.24bn in the quarter, down from $1.98bn in the same period last year but better than the $1.15bn expected by analysts.

The company lifted its output guidance to between 680,000 and 700,000 barrels of oil equivalent per day from 650,000 to 690,000, as it reported a 26% rise in third-quarter production to 716,000 boed.

Revenue for the period fell to $4.15bn from $4.58bn, with pre-tax profit down to $466m from $1.99bn.

BG said its Upstream business maintained positive momentum in growth projects in Australia and Brazil and continued to improve reliability and efficiency in its base assets.

It added that liquefied natural gas operations saw a robust operating performance despite challenging market conditions.

Chief executive Helge Lund said: "We are on track to deliver our promised operating and capital cost savings for 2015 and are adding new low cash cost volumes through Australia and Brazil. These actions will help mitigate the impact of lower commodity prices on our financial results.

"We continue to work with Shell on integration planning and to secure the necessary regulatory approvals ahead of the shareholder vote. The transaction remains on track to complete in early 2016."