British energy group BG reports drop in profits

28th July 2010, Comments 0 comments

British energy producer BG Group said Wednesday that net profits dropped by a fifth to 602 million dollars in the second quarter, hit by higher exploration write-offs.

The company, whose operations extend from Brazil to Norway, said profit after tax of 602 million dollars (462 million euros) in the three months to June 30 compared with net profit of 761 million dollars for the second quarter of 2009 -- a drop of almost 21 percent.

BG said an exploration charge of 366 million dollars was 166 million dollars up compared with a year earlier as a result of "higher well write-off costs".

However operating profit increased by two percent to 746 million dollars "as a result of the increase in revenue and other operating income, partially offset by a higher exploration charge, including the (255-million-dollar) write-off of the Mandarin well in Norway".

© 2010 AFP

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