BG Q4 profit drops 54 percent

BG Group, the UK-based LNG player being acquired by Shell, reported on Friday a 54 percent decline in its fourth-quarter profit due to a downturn in oil and gas prices.

BG’s earnings stood at $423 million in the fourth quarter as compared to $915 million a year earlier. The company’s full-year earnings of $1.7 billion decreased 58 percent as compared to 2014, BG said in a statement.

E&P production in 2015 increased 16 percent to 256.90 mmboe primarily as a result of the ramp-up in Brazil, Australia and Norway.

LNG shipping

BG said its LNG Shipping & Marketing EBITDA decreased 51 percent in the fourth quarter to $272 million, reflecting lower margins primarily as a result of the fall in sales prices. Delivered volumes increased 110 percent, with 88 cargoes delivered. The increase included 32 cargoes from QCLNG and 13 additional spot cargoes, partially offset by one less cargo from the Group’s Atlantic Basin supply contracts.

Fort the full year 2015, LNG Shipping & Marketing EBITDA decreased 46 percent to $1.46 billion. Delivered volumes rose 63 percent with 282 cargoes delivered. The increase included 77 cargoes from QCLNG and 31 additional spot cargoes.

“The ramp up of both LNG trains at our QCLNG project in Australia and the ramp up in Brazil, including the start-up of our sixth FPSO, drove a strong E&P operational performance. Our LNG Shipping & Marketing business delivered 282 cargoes, an increase of 58% on 2014, in difficult market conditions,” BG’s CEO, Helge Lund said in the statement.

According to Lund. the addition of new low cash cost volumes in Brazil and Australia and delivery of BG’s operating and capital cost savings has helped to partly mitigate the impact of lower commodity prices.

“We will deliver a high-performing business into the combination with Shell,” Lund said.

LNG World News Staff