BG Group’s Q2 Earnings Decline on Lower Output
iNVEZZ.com, Friday, July 26th: UK natural gas producer BG Group Plc (LON:BG) reported that its second-quarter earnings declined reflecting lower production. In its quarterly statement BG Group also addressed the recent unrest in Egypt with the country accounting for about a fifth of the British energy company’s production. BG Group’s share price was little changed in morning trading in London today.
**BG Group Earnings Fall**
UK-based BG Group said today in a statement that its earnings in the second quarter declined three percent to $986 million (£640.5 million), down from $1 billion (£649.6 million) a year earlier, whereas production declined two percent, in line with company expectations.
Commenting on the results, BG Group’s chief executive Chris Finlayson noted that the three-percent drop in earnings reflected lower volumes and higher unit operating and depreciation costs in the upstream segment. BG Group reiterated its 2013 LNG Shipping & Marketing total operating profit guidance range of $2.5 billion to $2.7 billion. “All other guidance for the year also remains unchanged,” Finlayson added.
The UK natural gas giant raised its interim dividend by 10 percent to 13.07 cents (8.51p) per share.
!m[Natural Gas Producer Addresses Egypt Unrest](/uploads/story/4362/thumbs/pic1_inline.png)
In BG Group’s statement, Finlayson addressed the recent events in Egypt where earlier in July the army ousted President Mohamed Mursi.
“Events in Egypt remain a primary concern and will continue to be so as the political, social and business environment evolves,” Finlayson pointed out. “While our offshore operations continue unaffected, higher than agreed gas volumes were diverted into the Egyptian domestic market during the quarter, impacting volumes available for LNG export.”
**BG Group’s share price was 0.04 percent up at 1,185.50p in London as of 08:54 BST on 26 July 2013.**