Britain’s BG Group today reported its 2Q 2014 revenue and other operating income increased 26% to $5 501 million.
Total earnings for the second quarter of 2014 were $1 367 million (40.1 cents per share) and included a post-tax gain of $158 million in respect of disposals, re-measurements and impairments, including a gain of $170 million arising from the sale of six LNG vessels. Total earnings in the second quarter of 2013 were $833 million (24.5 cents per share) and included a post-tax loss of $153 million in respect of disposals, re-measurements and impairments.
LNG delivered volumes were 29% higher, with higher realised prices in Asian and South American markets.
While E&P production volumes were lower, revenues benefited from a material increase in oil volumes, particularly from Brazil, combined with higher oil and liquids prices.
Total operating profit increased 11% to $1 992 million, reflecting higher revenues, partly offset by higher operating costs in the Upstream segment and lower LNG cargo margins as a result of an increase in spot purchases.
Group earnings of $1 209 million and EPS of 35.5 cents increased by 23% and 22% respectively as a result of the increase in total operating profit, combined with the decrease in net finance costs and the reduction in the Group’s tax charge.
BG Group’s interim Executive Chairman, Andrew Gould said: “We have delivered a good set of results for the second quarter. E&P performance reflects the growing proportion of oil in the portfolio, principally from Brazil, and the deferral of maintenance shutdown activity in the UK to later in the year. LNG performance reflects additional cargo deliveries and favourable realised prices. There is no change to our full year E&P production volume and LNG operating profit guidance, with lower E&P volumes and fewer LNG cargoes expected in the second half of 2014.
“We also continued to deliver important milestones for our key growth projects. In Brazil, new wells were connected with flow rates exceeding expectations. In Australia, commissioning of the gas turbine generators at the QCLNG liquefaction plant has begun and, subject to the current risk of industrial action on Curtis Island, we remain on track for first LNG by the end of the year.”