BG Group plc today announced its second quarter and
half-year results for 2001 delivering strong growth in
profits and earnings during the quarter.
Total operating profit* rose by 27 per cent to £205
million in the second quarter (29 per cent, £437
million for the half-year). Underlying performance has
continued to improve and, at constant upstream oil and
gas prices, the Group's total operating profit* rose
by 15 per cent in the second quarter (18 per cent for
the half-year).
Earnings* increased by 18 per cent to £112 million
in the second quarter (15 per cent, £248 million
for the half-year) and earnings per share* rose by 19
per cent to 3.2 pence in the second quarter (15 per cent,
7.1p for the half-year).
BG announced an interim dividend of 1.5p per share,
an increase of three per cent.
BG Group Chairman Richard Giordano said: "BG Group
continued to demonstrate strong growth in profit and
earnings during the quarter, building on the excellent
performance delivered in the first quarter of the year."
Chief Executive Frank Chapman said: "BG Group had
a very successful quarter, making the significant Buzzard
UK oil discovery, delivering the Blake oil field ahead
of schedule and securing major liquefied natural gas
import capacity in the USA."
The exploration and sidetrack well drilled on the Buzzard
oil discovery in the North Sea indicates that it may
be one of the most substantial finds in the area in recent
years. Estimates put reserves at more than 200 million
barrels in the part of the structure tested. BG, which
has a 19.99 per cent interest in the licence, drilled
the wells on behalf of the consortium partners. The well
results were announced in June and July.
The Blake oil field in the northern North Sea came onstream
in June - just
18 months after project sanction. Excellent project execution
and partner collaboration enabled the field, operated by BG
(44 per cent), to enter production two months ahead of schedule
and some 10 per cent below budget.
In May, BG took a major step forward in the USA gas
market with the signing of an agreement to take all the
available capacity at CMS Energy's liquefied natural
gas (LNG) importation terminal in Lake Charles, Louisiana,
for 22 years from January 1, 2002. The agreement creates
a significant opportunity for BG in a key area where
there is a highly liquid market and gas demand is forecast
to increase. The terminal gives BG the capability to
supply growing markets throughout the US.
BG underlined its commitment to the growing international
LNG market in July by entering into an agreement with
Samsung Heavy Industries Co. Limited of Korea for the
purchase of two new-build LNG ships and for options on
a further six vessels.
Following a strategic review of the Storage asset, BG
announced its sale to Dynegy on July 16 for £421
million. Completion of the transaction, which is subject
to regulatory and UK Government approval, is anticipated
for the end of the third quarter.
Commenting on the outlook for the company Richard Giordano
said "We remain on course to deliver our 2003 targets.
We will continue to focus on driving our projects around
the world which should allow us to meet these targets
and will fuel our growth into the future."
(*Continuing operations excluding exceptional items) |