BG Group plc publishes Full Year 2015 Trading and Operational Update
BG Group 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 kboed
Upstream EBITDA1 of at least $4.1 billion
LNG Shipping & Marketing EBITDA1 of at least $1.4 billion, in line with guidance of around the middle of the $1.3-1.5 billion range
Business Performance2 earnings of around $1.7 billion
Total results earnings of at least $2.3 billion, which are expected to include a post-tax gain of at
least $0.6 billion in respect of disposals, re-measurements and impairments
Net cash flow from operating activities of around $4.3 billion; and
Capital investment on a cash basis of around $6.4 billion, lower than guidance of around $6.5 billion.
The post-tax gain of at least $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 $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 $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 $0.3 billion in relation to exceptional one-off and prior year taxation, and a net charge of around $0.1 billion in relation to other re-measurements and exceptional items.
Full year E&P production volumes are expected to average 704 kboed in 2015, around 16% higher than 2014 reflecting growth primarily in Australia, Brazil and Norway. Volumes in Australia more than doubled to 88 kboed and in Brazil, almost doubled to 146 kboed. In Norway, Knarr came onstream in March and has produced an average of 12 kboed during 2015. This growth was partially offset by the expected decline in Egypt, down 18 kboed to 44 kboed, combined with lower volumes in Trinidad & Tobago, down 13 kboed to 52 kboed.
The LNG Shipping & Marketing segment delivered 282 cargoes (17.9 million tonnes) 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.
More: Profit Estimates for the year ended 31 December 2015
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