BG Startles Markets with Dull Outlook

British oil and gas company BG surprised the market by forecasting zero production growth in 2013.

Shares in the group immediately took a hit on the October 31 news. 

The group blamed its dull prospects on a series of factors, including problems in Egypt and Brazil. But the major cause seems to be the closing of the Elgin/Franklin field in the North Sea. At one point in trading, the share price dropped by 19.3% to £10.75 (€13.32).

Its results and outlook were announced a day earlier than expected.

BG also announced it would sell certain interests in the Queensland Curtis LNG project in Australia for $1.93 billion.

The buyer is the China National Offshore Oil Company (CNOOC).

The group said its Australian business, QGC Pty Limited, will remain operator and retain majority ownership of the QCLNG project.

According to marketwatch.com, US stocks as well as British reacted negatively to the BG announcement.