UK-based LNG player BG Group said its third-quarter earnings of $280 million were down 63 percent when compared to 2014.
Revenue and other operating income decreased 9 percent to $4.15 billion, reflecting a significant fall in realised sales prices impacting both the Upstream and LNG Shipping & Marketing segments, BG said on Friday.
BG’s E&P production was 716 thousand barrels of oil equivalent per day (kboed), up 26 percent from the third quarter of 2014. Growth in the third quarter was driven by Australia, Brazil and Norway.
The company has also boosted its full year guidance for production to 680-700 kboed.
“ We are on track to deliver our promised operating and capital cost savings for 2015 and are adding new low cash cost volumes through Australia and Brazil. These actions will help mitigate the impact of lower commodity prices on our financial results,” BG’s CEO, Helge Lund said.
Earlier this year, BG agreed to be taken over by gas and oil giant Shell in a $70 billion deal.
“ We continue to work with Shell on integration planning and to secure the necessary regulatory approvals ahead of the shareholder vote. The transaction remains on track to complete in early 2016,” Lunde added.
LNG shipping
BG said that delivered volumes increased 76 percent to 4.8 million tonnes with 25 cargoes from QCLNG and six additional spot cargoes in the quarter.
LNG Shipping & Marketing EBITDA decreased 65 percent to $213 million, reflecting lower margins primarily as a result of the fall in sales prices, according to BG.
In the first nine months of this year, BG delivered 194 cargoes of the chilled gas., or 12.2 million tonnes.
Delivered volumes increased 48 percent with 45 cargoes from QCLNG and 18 additional spot cargoes, partially offset by three fewer cargoes from the Group’s Atlantic Basin supply contracts, BG said.
LNG Shipping & Marketing EBITDA decreased 44 percent to $1.18 billion in the nine-month period.
LNG World News Staff; Image: BG