BG LNG Profit Up 3 Percent

BG LNG Profit Up 3 Percent

BG Group of UK said its LNG Shipping & Marketing total operating profit in 2013 increased 3% to $2 643 million, primarily due to a favourable LNG cargo delivery mix with increased deliveries to high value Asian markets and lower hedging losses.

BG delivered 178 LNG cargoes, 19 fewer than in 2012, including 13 fewer long – term supply cargoes (eight from Egypt, five from Nigeria) and six fewer spot cargoes . Deliveries comprised 127 to Asia, 41 to South America, six to the USA, two to Europe, one to Mexico and one to the UAE (2012 : 1 97 cargoes: 122 Asia, 47 South America, 19 USA, eight Europe and one UAE).

The company said its revenue and other operating income increased 1% to $19 101 million in 2013. Total operating profit decreased 5% to $7 616 million.

BG Group’s Chief Executive, Chris Finlayson said: “In 2013, we met all of our key milestones and continued to progress our growth projects in Australia and Brazil. In 2014, we will see first LNG exports from our QCLNG project in the final quarter and we will continue to ramp up production in Brazil. Clearly, we also have to address the near – term challenges we face in Egypt , and deliver our plans consistently and effectively. Our capital expenditure will begin to decline in 2014 and we continue to expect to be free cash flow positive in 2015 .”

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LNG World News Staff, February 4, 2014; Image: BG