(MENAFN- ProactiveInvestors - UK) BG Group (LON:BG.) has presented what it's called 'an excellent operational performance' though the impacts of lower commodity prices saw earnings fall by nearly 40%.
In the fourth quarter group earnings (EBITDA) reduced by 22% to US$1.42bn from 1.8bn which meant the tally for the full year was US$5.6bn down from US$9.17bn in 2014.
The takeover of BG by Shell due to complete later this month is supposed to improve the asset quality of the latter. And indeed BG this morning emphasised its operational successes particularly with the ramp-up of LNG operations in Australia and Brazil.
BG shipped 282 LNG cargoes in 2015 an increase of 58% year-on-year in what was described as a difficult market.
Helge Lund BG Group chief executive said: 'We are pleased to have delivered an excellent operational performance in 2015 with results in line with or ahead of our guidance for the year.'
"This strong operational performance is the result of the capability and commitment of our teams across the organisation and we will deliver a high-performing business into the Combination with Shell' he added.
BG shares edged 0.33% higher to 1061p.
Yesterday Shares in Royal Dutch Shell (LON:RDSB) rose as investors welcomed upbeat earnings news and its decision to maintain its dividend. Shell said fourth quarter 2015 earnings were US$1.8bn compared with US$3.3bn in the same period a year ago.
Analysts at Barclays said the results were "reassuringly in line" with adjusted net income of US$1.9bn at the top end of a forecast range of US$1.6-US$1.9bn.
"Recent actions make it clear Shell has been re-setting the business not only in preparation for a lower oil price environment with less competitive options being stopped but also for the incorporation of the BG assets.
"Shell is clearly not exempt from the squeeze in earnings and cash flow faced by the industry but with the acquired assets it is likely to have more levers than most to pull through the downturn."
Share Facebook if (typeof urlShortener == 'undefined') { var urlShortener = { generate: function(){ $.get('/swift/tinyUrl?url=http%3A%2F%2Fwww.proactiveinvestors.co.uk%2Fcompanies%2Fnews%2F122201%2Fbg-emphasises-operations-success-as-earnings-drop-122201.html' function( url ) { $('.twitter.tweet').attr('onclick' 'popUp = window.open(\'https://twitter.com/intent/tweet?url=' + url + '&text=%23BG.+BG+emphasises+operations+success+as+earnings+drop&via=proactive_uk\' \'popupwindow\' \'scrollbars=yeswidth=800height=400\');popUp.focus();return false'); }); } } urlShortener.generate(); } Twitter
Google+ LinkedIn Email Print Download PDF version