BG’s 4Q Earnings Drop 29 Pct. 2013 Capex Set at $12 Billion

BG's 4Q Earnings Drop 29Pct. 2013 Capex Set at $12 Billion

BG Group, a UK-based oil and gas company, today announced that its full year 2012 earnings rose 3% to $4.4 billion.

The company’s 4Q 2012 earnings dropped 29% to $1 billion

The recently appointed, BG Group’s Chief Executive, Chris Finlayson said, “Earnings in the fourth quarter were down 29% to $1.0 billion, primarily as a result of a one-off $277 million tax credit in 2011. Excluding this tax credit, underlying earnings fell by 13%, broadly in line with the 12% decline in total operating profit. In the Upstream segment, total operating profit decreased by 12%, and fewer LNG cargo deliveries combined  with lower spot prices resulted in a 16% lower contribution from LNG Shipping & Marketing.”

2013 outlook
BG Group’s production outlook for 2013 is 630 kboed to 660 kboed. Year on year production is expected to be slightly down in the first half;  ower in the third quarter, when the Group performs most of its maintenance programme, and  then grows strongly in the fourth quarter, driven by the ramp up of two FPSOs in Brazil, and significant volumes from Jasmine and Margarita Phase 2. The timing for Elgin/Franklin resuming production remains a key uncertainty. Given this starting point in 2013, and adjusting for the CNOOC deal, the Group’s previous guidance of more than 1 mmboed will not be reached in 2015. The Group still expects strong volume and cash flow growth in 2014 and 2015.

Capex

Planned capital expenditures on a cash basis are some $12 billion: $5.5 billion for Australia; $2.7 billion for Brazil;  $3.0 billion for base producing assets; and $0.8 billion for other projects. Exploration and appraisal expenditure is expected to be around $1.6 billion, approximately 50% of which will be expensed.

 

February 5, 2013

 

 

 

 

Share this article

Follow Offshore Energy Today

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply