FTSE 100-listed oil and gas producer BG Group’s shares rose yesterday after it said earnings fell less than analysts expected in the third quarter.
The four per cent decline was due to BG’s decision to cut production in the US, where gas prices have been low and after it sold fewer liquefied natural gas (LNG) cargoes. BG posted earnings of $1.1bn (£686.4m) in the three months to the end of September, beating analyst expectations of $944m, on oil and gas production which was 10 per cent lower.
Production would recover in the fourth quarter, BG said, helped by the return of certain North Sea projects which have been shut for maintenance and as a new field there comes onstream.
BG said in February that it expected to produce between 630,000 and 660,000 barrels of oil equivalent this year.
City A.M. Reporter