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

 

 

 

 

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