BG Goes out with a Bang

UK integrated gas producer BG reported February 5 its last annual financial results before Shell takes over the business mid-February and pays the 2015 dividend.

Production was up 16% at 704,000 barrels of oil equivalent/d but earnings were down 35% at $4.17bn. As forecast, LNG earnings were in the expected range at $1.46bn, down 46% despite a big increase in cargoes: 282 delivered, up 58%. Capital expenditure was down a third to $6.4bn and cost and efficiency savings yielded $300mn.

The outgoing CEO Helge Lund said: “We are pleased to have delivered an excellent operational performance in 2015 with results in line with, or ahead of, our guidance for the year. 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.... This strong operational performance is the result of the capability and commitment of our teams across the organisation and we will deliver a high-performing business into the combination with Shell.”

William Powell