BG Group profits more than double on high gas prices

BG, one of the UK’s three largest gas producers, profits more than doubled in the second quarter due to high natural gas prices and increased production.

Profits before tax rose to $2.25bn (£1.38bn), up from $862m last time, on revenues that increased 26pc to $5.1bn, the company said in a statement.

Production in the quarter was up 3pc to 58.9m barrels of oil equivalent.

BG is undertaking major projects to develop oil and gas reserves in Brazil and Australia, and claimed that the higher production reflected a return to normality in Egypt and Tunisia output after civil unrest affected it in the first three months of the year.

During the quarter BG opened a fourth liquid stabilisation plant at a field in Kazakhstan, signed new deals for production contracts off the coast of Kenya and ramped-up production at shale gas operations in North America.

BG Group’s chief executive, Sir Frank Chapman, said: “We made good progress in both our exploration and production and LNG businesses. In Brazil, we saw major increases in our reserves and resources; with the new resources delivering a higher unit value as their production is expected to require no additional surface facilities.

Source: Telegraph


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