BG Group earnings hurt by writedown
GAS producer BG Group reported a 19 per cent rise in underlying profit last quarter, mostly due to higher worldwide gas and oil prices.
However, its second-quarter net profit fell 21 per cent to $602m (£385m) after heavy losses on asset disposals and commodities contracts.
BG wrote off $255m invested in a well in the North Sea, around three-quarters of which will be refunded by the Norwegian authorities, chief executive Frank Chapman said.
Gas production, which makes up two-thirds of BG’s output, dropped two per cent in the quarter, to 57.3m barrels of oil equivalent or 630,000 barrels per day.
Some of the drop was due to planned maintenance, and the firm expects slight annual growth.
UK gas prices fell 17 per cent but rose elsewhere by 35 per cent.