BG energy posts strong profits on materials prices

2nd November 2010, Comments 0 comments

British energy producer BG Group reported a 7.0-percent rise in third quarter net profit on Tuesday, aided by higher commodity prices, and also raised its resources estimate for Brazil.

Earnings after tax increased to 849 million dollars (607 million euros) in the three months to the end of September, from 796 million dollars in the same part of last year.

Sales surged by 21.9 percent to 4.41 billion dollars, while oil and gas production dipped 0.4 percent to 56.4 million barrels in the reporting period.

"Alongside a set of good quarterly results, we have made significant progress in the delivery of our growth plans for the decade ahead," chief executive Frank Chapman said in the earnings release.

"In Brazil, we have brought onstream the first Tupi permanent facilities and we have announced a very significant resources upgrade on the Tupi, Iracema and Guara fields.

"In Australia, we have realised a pivotal strategic objective with the sanction of the Queensland Curtis liquefied natural gas (LNG) project.

"This further globalises our LNG business by establishing a new and material source of equity LNG in the Asia-Pacific arena."

On Sunday, BG Group announced plans to spend 15 billion US dollars on a liquefied natural gas (LNG) project in Australia.

Meanwhile in a separate statement on Tuesday, BG revealed a major upgrade to its oil fields off the coast of Brazil.

"BG Group today announced a 2.7 billion barrels of oil equivalent (boe) upgrade to estimates of gross resources for the Tupi, Iracema, and Guara fields in the Santos Basin, offshore Brazil," it said.

"BG Group's new aggregate best estimate of economically recoverable gross resources for these fields amounts to 10.8 billion boe."

This latest estimate was a 34-percent upgrade from the group's previous forecast.

"As a result of the upgrade, BG Group's aggregate best estimate of its economically recoverable net resources on Tupi, Iracema and Guara now stands at 2.8 billion boe."

© 2010 AFP

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