Gas sale means BG will miss output target
Shares in BG Group tumbled today after the former exploration arm of British Gas warned that it would not hit its production target of more than one million barrels of oil equivalent a day by 2015.
To make matters worse, BG cautioned that production could actually fall this year as shutdowns and maintenance on key oil and gas fields, such as the Elgin/Franklin complex off Scotland, threaten to drag on. The group blamed its missing the 2015 milestone on the sale of a stake in an Australian liquefied natural gas project to China’s CNOOC in October, as well as this year’s slowdown.
The warnings sent BG’s shares down 23p, or 2.1%, to 1,081.0p.
BG said production came in at 658,000 barrels of oil equivalent a day last year and that its output in 2013 could be as low as 630,000.
However, chief executive Chris Finlayson was upbeat. “We continued to deliver excellent performance in exploration and appraisal with 18 successful wells out of 19 tests in the year, including a further four successes in Tanzania,” he said.
Pre-tax profits was $6.3bn (£4bn) for 2012, down from $7.2bn a year earlier, as it suffered a $1.4bn writedown. Revenues rose from $17.7bn to $18.9bn over the period. BG increased its full-year dividend by 10% to 26.14 cents a share.
World's most lethal spider found under a bunch of bananas
Rumours that the star wants to move on to pastures new
TV presenter Fiona Bruce seemed a bit startled by the find during the filming of Antiques Roadshow
Comedian says he 'never laughed as hard as I have writing with Rik'
- 1 Sick elderly man makes 'complete turnaround' after emotional reunion with dog
- 2 Star Wars memorabilia dubbed 'bit of plastic' by Antiques Roadshow's Fiona Bruce valued at £50,000
- 3 Isis fighters 'crucify' 17-year-old boy in Syria
- 4 Ebola cruise ship ‘in utter panic’ as Mexico and Belize refuse to let it dock
- 5 Death of northern white rhino leaves just six of endangered animals left in the world
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Sorry Judy Finnigan – Ched Evans is no less sickening than an alleyway rapist
Residents should throw a street party and mix with immigrant neighbours, councils told
Workers 'could be forced to pay £5 a week' to get benefits
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
iJobs Money & Business
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...
£50000 - £55000 per annum + bonus + benefits: Ashdown Group: IT Relationship M...
Highly Attractive Salary : Austen Lloyd: NOTTINGHAM - BRILLIANT FIRM - You wil...