Upstream production up, profits down at BG Group
BG Group was doing all it could in 2015 to offset commodity price falls, it revealed in its final results on Friday, with revenue and earnings down significantly on the prior year.
The FTSE 100 company - soon to be part of Shell - saw upstream production rise 16% during the year to 31 December, to 704,000 barrels of oil equivalent per day.
BG Group also saw 282 LNG cargoes delivered, an increase of 58%.
The lower commodity prices did have an impact on BG's financial results, as expected, with Upstream EBITDA down 35% to $4.17bn (£2.86bn), and LNG EBITDA down 46% to $1.46bn.
Business performance earnings were $1.7bn and the company's earnings per share for the year was 49.7c - both down 58%. Total earnings were $2.33bn, and total earnings per share was 68.2c.
BG Group managed to rein in its spending in 2015, with capex down 32% to $6.39bn, and cost and efficiency savings targets of $300m was exceeded. Free cash outflow was down 8% to $2.33bn.
Chief executive Helge Lund said the board was pleased with 2015's results, which came in line or ahead of their guidance for the year.
"The ramp up of both LNG trains at our QCLNG project in Australia and the ramp up in Brazil, including the start-up of our sixth FPSO, drove a strong E&P operational performance", he said.
"The addition of new low cash cost volumes in Brazil and Australia, and delivery of our operating and capital cost savings has helped to partly mitigate the impact of lower commodity prices", he added.
BG Group's disposals through the year came to a total of $5.19bn, with net cash inflow before dividends of $3.36bn.
The company's board said there would be no final dividend, with completion of the combination with Royal Dutch Shell expected prior to Shell's fourth quarter dividend record date.
Shell shareholders approved the controversial combination on 27 January and BG shareholders a day later, despite many believing the deal no longer made financial sense given the volatile commodities price environment globally.