LNG player BG said its revenue and other operating income increased 3% to $5 061 million in the first quarter of 2014. While E&P production volumes and LNG cargo deliveries were lower, revenues benefited from a significant increase in oil volumes, particularly from Brazil.
Total operating profit decreased 6% to $2 009 million, reflecting reductions in both the Upstream and LNG Shipping & Marketing segments, BG said in a report.
In Upstream, higher revenues were more than offset by higher operating costs. In LNG Shipping & Marketing, while average LNG margins were favourable, this was more than offset by the lower number of deliveries, with no BG Group cargoes from Egyptian LNG.
BG’s interim Executive Chairman, Andrew Gould said: “ In the first quarter, we continued to make good progress with our key growth projects in Australia and Brazil. Group production volumes for the first quarter were consistent with our anticipated seasonal phasing, although production entitlement from Egypt was lower than expected as domestic offtake remains well above contractual commitments and reservoir performance deteriorates. As a result of the challenges in Egypt, the Group’s 2014 production is now expected to be at the lower end of the guidance range .”