LONDON (Alliance News) - BG Group PLC on Wednesday said earnings dropped in 2015 as expected, but said those results are in line or ahead of expectations.
"Our excellent operational performance in 2015 is expected to deliver results in line with, or ahead of, our guidance for the year," said Chief Executive Helge Lund.
The oil and gas company, which is weeks away from an landmark shareholder vote on the company's proposed merger with Royal Dutch Shell PLC, said it expects to report total results earnings of "at least" USD2.30 billion in 2015, nearly halving from USD4.03 billion in 2014.
Business performance earnings are expected to be around USD1.70 billion, considerably down from USD4.34 billion a year ago.
Those total earnings will include a post tax gain of at least USD600.0 million in respect of disposals, re-measurements and impairments, the company said.
Earnings before interest, tax, depreciation and amortisation from the upstream division, which refers to production, is expected to come in at at least USD4.10 billion, whilst liquefied natural gas shipping and marketing Ebitda is expected to be at least USD1.40 billion - in the middle of BG's prior guidance range.
The LNG shipping and marketing unit delivered 104 more cargoes in 2015 than it did in 2014, BG said, shipping an additional 6.9 million tonnes, boosted by increased deliveries to Asia and the start of shipments to Egypt, Pakistan and Jordan during 2015.
Production in 2015 averaged 704,000 barrels of oil equivalent per day, ahead of BG's guidance of 680,000 to 700,000 barrels a day.
"Full year E&P production volumes are expected to average 704,000 barrels of oil equivalent per day in 2015, around 16% higher than 2014 reflecting growth primarily in Australia, Brazil and Norway," BG said.
Net cashflow from operating activities in 2015 was around USD4.30 billion, and capital investment on a cash basis was USD6.40 billion, which is lower than its guidance of USD6.50 billion.
Shell and BG shareholders will head to the polls later this month to vote on the proposed mega merger between the two companies. Shell also released preliminary results for 2015 on Wednesday, revealing the company's current cost of supply earnings almost halved as well during the year.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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