BG Group Income Falls 3 Pct (UK)

BG Group,a UK-based oil and gas exploration and production company, today reported a drop in its quarterly earnings. The company earned $1,18 billion in 1Q 2013

The company’s earnings fell 3% when compared with the same period last year when it achieved $1,22 bilion. BG’s production levels were down 3% too.

BG Group’s Chief Executive, Chris Finlayson said: “First quarter results were consistent with our expectations and guidance. Earnings were down 3%, reflecting the impact of lower production volumes and increased costs in the Upstream segment. LNG Shipping & Marketing total operating profit was up 3% at $742 million, which is in line with our 2013 outlook. Additionally, cash flow from operations was up 3% to $2.7 billion and gearing ended the quarter at 23.5%.”
“We set three key project milestones for the first quarter and we have delivered on those commitments. In Brazil, the second FPSO began operations on time and on budget, while in the UK, Elgin/Franklin resumed production from three wells and our Everest East expansion project was brought onstream. Additionally, future 2013 project milestones remain on target, most notably with FPSO 3 now moored on location and all modules for Jasmine installed ahead of expected start-up in the fourth quarter.”

Capital investment (excluding acquisitions and on a cash basis) of $2 636 million was predominantly in the Upstream segment ($2 628 million). This investment was focused primarily on the Group’s major projects in Australia, Brazil, the UK and Egypt.