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BG Raises Output Forecast in Boon for Shell as Deal Nears

  • Company raises 2015 production target to 680,000-700,000 b/d
  • Adjusted net income dropped 63% to $280 million in quarter
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BG Group Plc raised it’s output forecast in a boost for Royal Dutch Shell Plc, which agreed to buy the U.K.’s third-biggest oil and gas company in a deal scheduled to be completed early next year.

The company increased its oil and natural gas production target to 680,000 to 700,000 barrels a day this year from an earlier estimate of as much as 690,000. Third-quarter adjusted net income fell 63 percent to $280 million from $759 million a year earlier, Reading, England-based BG said Friday in a statement. That beat the $200.5 million average estimate of 11 analysts surveyed by Bloomberg as output rose 26 percent.