BG Group's profits slide by 5pc
Published 30/04/2010 | 05:00
BG Group announced a 5pc slide in profits yesterday as a slump in global natural gas prices offset robust growth in production.
The demerged international arm of the old British Gas said that net profit in the first three months of the year stood at £626m (€725m), compared with slightly more than £640m for the same period last year.
BG has been battling against fierce headwinds in the global gas industry -- a glut of production of unconventional shale gas in the US and falling demand in the economic slowdown have weighed heavily on prices.
BG said that the average price it had received for its gas slipped 17pc compared with a year earlier.
The result was also hit by a £202m charge from the sale of three American power plants.
Frank Chapman, chief executive, described the announcement as a "good set of operating results".
The weaker financial performance masked brisk growth in production at BG, which rose by 6pc to a 61.3 million barrels equivalent compared with a year ago. The growth was driven by higher volumes in the US, Australia and a big new project in Tunisia.