BG posts $2.3 billion earnings

BG Group ended the year on top with its total earnings coming in at $2.3 billion, a significant improvement from a $1.1 million loss in 2014. However, the UK giant did report a loss of $29 million in Q4 2015.

BG’s Q4 earnings loss was not nearly as devastating as its $5 billion loss the company reported in Q4 2014. The company reached $2.3 billion with the inclusion of a $1.7 billion gain from disposal of non-current assets that was mainly due to the QCLNG pipeline sale to the APA Group.

Revenue for Q4 took only a 2 percent hit to $4.3 billion from $4.4 billion in Q4 2014. Full year revenue and other operating income dropped 16 percent to $16.4 billion, from last year’s $19.5 billion.

“The addition of new low cash cost volumes in Brazil and Australia and delivery of our operating and capital cost savings has helped to partly mitigate the impact of lower commodity prices,” Lund said.

Q4 E&P production was 757,000 boe/d, a 20 peercent increase form Q4 2014, which BG contributed the growth to Australia, Brazil, the UK and Norway operations.

Australia saw volumes more than double to 117,000 boe/d. Meanwhile in Brazil, volumes jumped 56 percent to 161,000 boe/d. Production from the UK increased 33 percent to 109,000 boe/d, reflecting the timing of shutdowns in 2014, the company said.  Offshore Norway, in the North Sea, Knarr continued its ramp up producing an average of 27,000 boe/d in Q4 2015.

In November, BG Group assumed operational control of Train 2 at QCLNG and commenced full commercial operations. The company reported that both LNG trains are now running at plateau, with 31 cargoes produced Q4, making a total of 83 cargoes since the start of 2015. In addition, 32 cargoes were delivered during Q4.

At the Santos basin off Brazil, the company achieved record production at 188,000 boe/d. Across the basin, BG had 25 wells in production, which are flowing at an average rate of around 26,000 b/d, gross to BG.