* FY op profit down 14 percent to $6.5 billion
* Net earnings down 8 percent to $4 billion
* To reduce capital expenditure to between $6 bln and $7 bln
* Shares down 0.9 percent after rising to two-month high (Adds details, analysts' views, updates share price)
By Karolin Schaps
LONDON, Feb 3 (Reuters) - BG Group Plc has written $6billion off the value of its oil and gas business in the fourthquarter to reflect the slump in the price of oil, forcing it tocut budgets and jobs this year.
Oil companies across the globe are scrambling to deal with ahalving in crude prices that has eaten into profits and ispushing them to trim costs and focus on short-term returns.
BG will now have to focus on delivering returns from itsnewly opened Queensland Curtis LNG facility and Brazilianoffshore fields to justify years of huge investments and delivervalue at a time when traditional business streams are underpressure.
BG, Britain's third-largest energy company by stock marketvalue after BP and Shell, booked a $5.9 billionimpairment charge, reflecting the steep decline in oil prices asit had banked on a higher value for its oil and gas output.
By contrast, BP fared much better in the fourth quarter,saying on Tuesday it had benefited from an unexpected profit atRussia's Rosneft in which it holds a 19.75 percentstake.
Some analysts say recent positive news on BG's newly openedprojects, including the first cargo exports from QCLNG anddeclaring a key Brazilian oil find as commercial, put thecompany in a good position to deliver returns.
"While there are material impairments today, we think themarket will look through them," said analysts at brokerageBernstein, who rate BG's shares "outperform".
In order to deal with weaker prices, BG plans to reduce itscapital expenditure to between $6 billion and $7 billion thisyear, compared with the $9.4 billion it spent in 2014.
JOB CUTS
These cuts will be paired with a planned 10 percentreduction in operational expenditure this year, which includesjobs, BG said. The group, which cut around 15 percent of itsstaff last year, did not say how many more jobs would be shed.
"In the new environment we are well placed to manage thedownturn as we are reaching the end of a high capitalexpenditure cycle and will continue to add further production in2015 from Brazil and Australia," Executive Chairman Andrew Gouldsaid.
The company is targeting a 2015 production level of between650,000 and 690,000 barrels of oil equivalent per day (boepd),up from 630,000 last year, betting on increases from Brazil andAustralia.
BG also chimed with fellow oil producers in maintainingdividend payments, announcing a payment for 2014 of 28.75 centsper share.
Its full-year operating profit fell to $6.5 billion, whilenet earnings slipped 8 percent to $4 billion.
Its key LNG business, a driver for profits in recent years,is expected to be hit by weaker oil prices this year, BG said,forecasting an operational profit between $0.7 and $1 billion.
Shares in BG were down 0.9 percent at 0946 GMT, reversing anearlier rise to 944.9 pence, their highest since early December.
BG, which has been without a chief executive for nearly ayear, has poached long-serving Statoil Chief ExecutiveHelge Lund, who will start taking the reins at the company onMarch 2 to lead its turnaround. (Editing by Kate Holton and David Holmes)
