BG Group Shares Fall on Missed Oil Production Target
By Shane Croucher | February 5, 2013 7:54 PM EST
BG Group shares dropped by as much as 2.5 percent in early London trading after the British oil and gas company said it would fail to a meet medium-term production target.
Reporting its fourth quarter and full year results, BG Group said annual earnings were up 3 percent to $4.4bn (£2.8bn, €3.26bn).
However, it added that the company would not achieve its goal of producing 1m barrels of oil equivalent per day by 2015.
"Importantly, we have begun a review of our longer-term strategy, and I look forward to sharing it with the market in May," said BG Group's Chief Executive, Chris Finlayson in a statement published on the company's website.
Fourth quarter earnings had plummeted 29 percent on the same quarter a year before, to $1bn, though BG Group blamed a one-off tax credit of $277m for the misleadingly drastic fall.
BG Group also raised its dividend by 10 percent to 26.14 cents per share.
In October, the company shaved around a fifth off of its value when it warned investors that output would be flat in 2013 because of issues in Egypt and delays in its Brazilian and North Sea projects.
The firm has reported its first production from its Sapinhoá field in Brazil, which is producing 120,000 barrels of oil per day, which is said is on schedule and budget.
Along 2013, BG Group said it expects production to be slightly down in the first half, then lower in the third quarter, before growing strongly in the fourth quarter as its Brazilian operation steps up a gear.
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail:
Most Popular Slideshows
- Malaysia Airlines Flight MH17: King Williem-Alexander, Queen Maxima Hold Solemn Reception Ceremony for Victims
- Jennifer Lawrence & Nicholas Hoult Allegedly Split: Mad Max Actor Cheats with Kristen Stewart & Riley Keough - Reports
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
Join the Conversation
- 5 Marketing Nuggets We Can All Learn From Lady Gaga
- Malaysia Airlines MH17: Multi-Million Pound Law Suit Looms Over Putin’s Head, Assets At Risk
- 5 Uncanny Jobs That Actually Pay Very Well
- Ebola Virus on the Loose: World Cautioned as Infection Moves; Global Airports on High Alert; Kills Liberian Doctor, Infects American Worker
- Advisory: Britons Told to Leave Libya ASAP, UK Issues Travel Ban
- Apple iPhone 6 on Two Confirmed Release Dates, New Parts Leaked Suggesting Bigger iPhone to Come
- Google Nexus 6, 8 with Android L on Release Date Promises Killer Mobile Device Experience
- iPhone 6 Release Date Relevance to iOS Newbies: Specs Meaning, Price Considerations
- HTC One M8 Android 4.4.3 KitKat Update Roll Out, Introducing the HTC One Remix
- Killer Whales Gobble Japanese Whaling Crew
- The Pirate Bay Releases ‘The Mobile Bay’: Mobile Torrent Download Made Easier but Remains Illegal
- Shocking Video of Pedigree Dog Culling in Bali Emerges [Video]