BG Profit Falls 3% on Egypt Output Decline After Finlayson Quits

BG Group Plc (BG/), whose chief executive officer resigned this week, said first-quarter earnings fell 3 percent as production in Egypt declined further.

Profit excluding disposals and one-time items dropped to $1.15 billion from $1.18 billion a year earlier, the U.K.’s third-largest natural-gas producer said today in a statement. That beat the $1.05 billion average estimate of eight analysts surveyed by Bloomberg.

CEO Chris Finlayson resigned after a little more than a year in the job as the Reading, England-based company missed or dropped production targets. His exit, for personal reasons, prompted analysts including RBC Capital Markets to speculate that BG, which is expanding its liquefied natural gas and oil businesses, may be an acquisition target.

BG, which remains committed to Finlayson’s strategy, needs to accelerate returns to shareholders, Chairman Andrew Gould said April 28. Gould is acting CEO until a permanent successor is found.

The company forecast total output will be about 590,000 barrels of oil equivalent a day this year. Egyptian extraction dropped 35 percent in the first quarter to 66,000 barrels a day from the prior three months because of deteriorating field performance and fuel diversion to the domestic market, BG said this week.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

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