BG Group net profit down 0.8% on lower production, higher costs
BY SELINA WILLIAMS
LONDON -- BG Group said its 1Q net profit was down 0.8% on lower production and increased costs in exploration and production, but said it had delivered three key milestones on projects in Brazil and the United Kingdom.
The company, which last year surprised the market by downgrading its production targets, said it was on track to meet its project milestones for this year.
BG Group said net profit for the three months ended in March totaled $1.21 billion, compared with $1.22 billion for the 1Q of 2012.
"We have made a good start to the year, delivering the three key milestones for the 1Q, whilst also making progress with our project execution program for the year" said CEO Chris Finlayson.
Excluding gains or losses from one-off items, such as asset sales, the company's profit was $1.18 billion, down 3.4% from $1.23 billion in the same period a year earlier. This was 6.1% above average expectations of $1.12 billion in a Dow Jones Newswires poll of six analysts.
Total oil and gas production was 659,000 boepd, a 1.5% fall from the same period a year ago, but slightly above analysts' expectations of 648,000 boepd. Revenue for the quarter was up 0.6% to $4.91 billion from $4.88 billion a year ago.
Dow Jones Newswires