A Review of the Nigerian Energy Industry

BG earnings slip

Chris-Finlayson26 July 2013 – BG Group saw earnings dip during the second quarter of the year as revenue fell on the back of lower production and prices.
Earnings for the three months to 30 June totalled $986 million, down 3% on the more than $1 billion booked during the second quarter of 2012.

The fall in earnings came as revenue for the quarter dropped 6% to less than $4.4 billion, compared to just under $4.7 billion booked during the same period last year.

Dragging down BG’s results was 7% drop in revenue from the upstream business segment, to $2.9 billion.

This came as output during the quarter fell 2% to 59.8 million barrels of oil equivalent, compared to 61.3 million boe last year, due to a planned shutdown of the Karachaganak field and the lowering of the company’s equity in Kazakhstan, the scaling back of its operations in the US and reservoir decline.

Also hitting revenue was a fall in the average realised oil price by 6%, to $102.11 per barrel, and an 8% drop in the liquids price, to $82.88 per barrel. This was partially offset however by the average realised gas price per produced therm increasing 7% to 47.55 cents.

“In the second quarter, earnings were down 3%, reflecting lower volumes and higher unit operating and depreciation costs in the upstream segment,” BG chief executive Chris Finlayson said.

“Both of these costs are expected to be around 50 cents per boe higher for full-year 2013 than originally forecast.”

BG also revealed on Friday that its board had approved an interim dividend of 13.07 cents per share which will be paid on 6 September to shareholders on the register as at 7 August.
*Josh Lewis, Upstreamonline

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