BG First-Quarter Profit Declines 3% as Oil and Gas Output FallsBrian Swint and Eduard Gismatullin
BG Group Plc, the U.K.’s third-largest oil and gas producer, said profit declined 3 percent in the first quarter as production dropped.
Profit excluding disposals and one-time items slipped to $1.18 billion from $1.23 billion a year earlier, the company said today in a statement. That was in line with the $1.12 billion mean estimate in a Bloomberg survey of 12 analysts. Net income fell to $1.21 billion from $1.22 billion.
Chief Executive Officer Chris Finlayson on May 14 will hold a presentation on strategy after BG last year reported project delays in Egypt, Brazil, the North Sea and the U.S. Production fell 3 percent in the first quarter after the company in February scrapped an output target of 1 million barrels a day for 2015.
BG has lost volumes from Total SA’s Elgin field in the U.K. North Sea, Lucas Herrmann, a London-based analyst at Deutsche Bank AG, said before the report. At the same time, it has been “aided by the benefit of an increase in Brazilian oil.”
BG’s production fell 3 percent to 659,000 barrels of oil equivalent a day. Deliveries of liquefied natural gas dropped 6 percent to 3 million tons.
BG, based in Reading, England, expanded pumping off Brazil with the start of the Sapinhoa field in January and will benefit from the North Sea Buzzard oil field, restarted by Nexen Inc. in November. Total resumed Elgin operations in March.
BG fell the most on record on Oct. 31 when it said production wouldn’t grow this year. Since then, former CEO Frank Chapman has stepped down and managers have skipped bonuses.
Shell and BP Plc are the U.K.’s biggest gas producers. BG will host a webcast presentation at 12 p.m. London time.