BG Group provides trading and operational update

BG Group has announced that it will publish its preliminary, unaudited, 2015 Fourth Quarter and Full Year results on 5 February 2016.

Helge Lund, BG Group’s Chief Executive, commented: “Our excellent operational performance in 2015 is expected to deliver results in line with, or ahead of, our guidance for the year. Ramp up of both LNG trains at our QCLNG project in Australia and the start-up of our sixth FPSO in Brazil drove a strong E&P operational performance while our LNG Shipping & Marketing business delivered 282 cargoes, an increase of 58% on 2014, in difficult market conditions.” 

Currently, BG Group expects to report for the full year 2015:

• Average E&P production volumes of 704 thousand barrels of oil equivalent per day (kboed), ahead of guidance of 680 - 700 kboe/d.
• Upstream EBITDA of at least US$4.1 billion.
• LNG Shipping & Marketing EBITDA1 of at least US$1.4 billion, in line with guidance of around the middle of the US$1.3 - 1.5 billion range.
• Business Performance earnings of around US$1.7 billion.
• Total results earnings of at least US$2.3 billion, which are expected to include a post-tax gain of at least US$0.6 billion in respect of disposals, re-measurements and impairments.
• Net cash flow from operating activities of around US$4.3 billion.
• Capital investment on a cash basis of around US$6.4 billion, lower than guidance of around US$6.5 billion.

The post-tax gain of at least US$0.6 billion in respect of disposals, re-measurements and impairments in the full year 2015 is expected to include a net charge of around US$0.5 billion in the fourth quarter. The net charge in the fourth quarter is expected to include non-cash post-tax impairment charges of around US$0.7 billion primarily reflecting the impact of further falls in commodity prices and reserve revisions on certain of BG Group’s E&P assets mainly in the North Sea and Tunisia, a net credit of around US$0.3 billion in relation to exceptional one-off and prior year taxation, and a net charge of around US$0.1 billion in relation to other re-measurements and exceptional items.

Full year E&P production volumes are expected to average 704 kboe/d in 2015, around 16% higher than 2014 reflecting growth primarily in Australia, Brazil and Norway. Volumes in Australia more than doubled to 88 kboe/d and in Brazil, almost doubled to 146 kboe/d. In Norway, Knarr came onstream in March and has produced an average of 12 kboe/d during 2015. This growth was partially offset by the expected decline in Egypt, down 18 kboe/d to 44 kboe/d, combined with lower volumes in Trinidad & Tobago, down 13 kboe/d to 52 kboe/d.

The LNG Shipping & Marketing segment delivered 282 cargoes (17.9 million t) in 2015, 104 more cargoes than in 2014 (6.9 million additional tonnes). Increased supply was driven by 77 cargoes from QCLNG and 31 additional spot cargoes. Of the 282 cargoes (2014 178), 209 were supplied to Asian markets (2014 121). BG Group delivered its first ever cargoes to Egypt, Pakistan and Jordan during the year.

The financial information in this announcement is preliminary and subject to further internal and external review before the publication of BG Group’s 2015 Fourth Quarter and Full Year results.

Adapted from a press release by David Bizley

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