31st Oct 2013 09:22
LONDON (Alliance News) - BG Group PLC Thursday said its pretax profit fell 11% in its third quarter as reduced activity in the US hit the company's production rates.
The major natural gas producer said its pretax profit fell to USD1.91 billion for the three months ended September 30 from USD2.15 billion the previous year.
The company said its sales fell 5.2% to USD4.43 billion from USD4.67 billion the previous year as lower production volumes and a fall in liquefied natural gas cargo deliveries hit the company.
BG group said its production fell 10% to 53.4 million barrels of oil equivalent as the company reduced its activity in the US, with other major effects being a reservoir decline in Egypt and the impact of planned shutdowns.
The company said it will see production recover in the fourth quarter as it completes its North Sea maintenance shutdowns and brings new projects into production.
During the quarter, BG Group delivered 44 liquefied natural gas cargoes, six fewer than in the third quarter of 2012 as a result of disruptions in Egypt and Nigeria during the quarter.
BG Group also said it is on track to deliver on schedule and within its USD20.4 billion budget the world's first project to convert coal seam gas to liquefied natural gas.
The company also said its Margarita Phase 2 and Bongkot North Phase 3K sites are now onstream while the company has agreed the sale of its US midstream assets and achieved the disposal of its Quintero LNG terminal, generating a total of USD400 million.
BG Group shares were up 1.3% to 1,261.50 pence, putting it in the top five FTSE100 winners in early trading Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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