4th Feb 2014 07:47
READING (Alliance News) - Oil and gas explorer BG Group PLC reported that its fourth-quarter 2013 loss attributable to shareholders narrowed to USD1.079 billion from USD1.741 billion in the same quarter last year.
Quarterly total pre-tax loss was USD1.577 billion, compared to pre-tax profit of USD1.548 billion in the year ago quarter.
Total loss from continuing operations for the fourth quarter 2013 was USD1.066 billion or 31.1 cents per share, compared to total earnings from continuing operations of USD935 million or 27.4 cents per share in the fourth quarter of 2012.
The latest-quarter result included a post-tax charge of USD2.201 billion in respect of disposals, re-measurements and impairments from continuing operations. The results for the quarter included a USD1.286 billion post-tax impairment of certain assets in Egypt and a USD1.105 billion post-tax impairment of certain assets associated with the shale gas business in the USA.
The prior year quarter result included a post-tax charge of USD90 million in respect of disposals, re-measurements and impairments.
On a business performance basis, profit attributable to shareholders for the quarter grew to USD1.135 billion from the prior year's USD1.025 billion, with earnings per share from continuing operations improving to 33.2 cents from 30.0 cents last year.
On a business performance basis, Revenue and other operating income for the quarter increased 14% to USD5.426 billion from, last year's USD4.753 billion principally due to a greater proportion of oil in the portfolio, a favourable LNG cargo delivery mix with increased sales to high value Asian markets and lower hedging losses, partly offset by a decrease in overall production volumes and fewer LNG cargo deliveries.
Total revenue and other operating income for the quarter was USD5.428 billion, up from USD4.842 billion in the year ago quarter.
BG Group's Chief Executive, Chris Finlayson said, "In 2014, we will see first LNG exports from our QCLNG project in the final quarter and we will continue to ramp up production in Brazil. Clearly, we also have to address the near-term challenges we face in Egypt, and deliver our plans consistently and effectively. Our capital expenditure will begin to decline in 2014 and we continue to expect to be free cash flow positive in 2015."
In 2014, BG Group's production volumes are expected to be in the range of 590 - 630 kboed with base assets contributing in the range of 480 - 520 kboed, excluding portfolio changes.
LNG Shipping & Marketing total operating profit for 2014 is expected to be in the range of USD2.1 - 2.4 billion at reference conditions, reflecting lower supply volumes from Egypt and reference conditions lower than realised prices in 2013. There is considerable uncertainty over the number of LNG cargoes that Egyptian LNG will produce in 2014.
2014 planned capital expenditure on a cash basis is expected to be lower than 2013, and is expected to fall to between USD8 billion - USD10 billion in 2015 and 2016. The Group therefore expects to have passed its peak year for capex. Exploration expenditure is expected to be around USD1.7 billion, around half of which will be expensed.
BG Group continues to expect to be free cash flow positive in 2015.
Copyright RTT News/dpa-AFX
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