* To miss goal of producing 1 million boed by 2015
* Q4 earnings down 29 percent
* Shares down 0.6 percent
By Sarah Young
LONDON, Feb 5 (Reuters) - BG Group has abandonedambitions to become a 1 million barrels per day oil and gasproducer by 2015 after taking stock of setbacks that havehammered its share price in the past three months.
BG, struggling to bring huge new developments in Australiaand Brazil onstream, shocked the market on Oct. 31 when itforecast flat output in 2013 because of project delays and ascaling back in U.S. shale gas activities as prices there fell.
Chief executive Chris Finlayson, announcing the first set ofresults under his stewardship, said on Tuesday the latestdowngrade to guidance was not a sign of systemic issues at BG.
"I am here to get the best possible value for theshareholders and that, at this time comes, from ... getting ourshort-term production right and developing our long-termprojects," he said.
BG posted a 29 percent drop in fourth-quarter earnings to$1.03 billion, meeting expectations.
Its reputation as a growth stock in a world where big oilcompanies have been struggling to raise production has lookedless solid since the October downgrade.
It said it would miss its 2015 target because its share ofproduction from the Queensland Curtis LNG (QCLNG) project inAustralia will be less than previously estimated after a deal tosell a stake to Chinese group CNOOC in October.
Lower production in 2013 because of issues at fields in theNorth Sea and Egypt also contributed to the 2015 target beingpushed out, BG said.
It forecast 2013 production of 630,000-660,000 boed, raisingthe possibility it could be lower than last year's 658,000 boed.The company forecast in October output would be flat this year.
NO SACRED COWS
BG shares, down almost a fifth since October, were 0.6percent lower on the day at 1,097.5 pence at 1320 GMT.
Finlayson said he was reviewing long-term strategy and wouldpresent the findings in May, a chance for the man who joinedfrom Shell in 2010 and replaced long-standing CEO FrankChapman at the beginning of this year to make his mark at BG.
"I think there is an element of 'kitchen-sinking' with thenew chief executive in play. A more conservative managementstyle tempering all of the estimates as he starts out,"Santander analyst Jason Kenney said.
The downgraded forecast highlights the scale of the taskfacing the new CEO. The sale of the QCLNG stake in Octoberraised funds to help pay for BG's development projects - QCLNGitself, for example, will cost $20.4 billion in total - and BGsaid planned capital expenditure in 2013 was $12 billion.
Analysts have said divestments in Brazil, seen as BG's crownjewels, and Australia were possible to help fund developments,something which Finlayson did not rule out.
"There will no sacred cows. Every asset will have to earnits position in the portfolio," he said.
EARNINGS LOWER
BG posted a 29 percent drop in fourth-quarter earnings,which it said were hit by the loss of a one-off $277 million taxcredit from which it benefited in the 2011 period.
Earnings of $1.03 billion in the last three months of theyear, compared with a company-supplied consensus forecast of$994 million. Bernstein analyst Oswald Clint said reduced taxesin the fourth quarter was the reason for the beat.
Excluding the impact of the 2011 tax credit, earnings were13 percent lower, BG said, adding the earnings fall was becauseof lower volumes which offset higher realised prices and aweaker performance in its LNG business.
Earnings in the LNG business, which sells the transportableform of gas primarily to countries in Asia, were 16 percentlower because of fewer LNG cargoes being delivered combined withlower prices in the spot market.
Investec analyst Stuart Joyner said he expected to cut hisforecasts on the back of the production downgrade, adding he sawrisks to a pick-up in LNG earnings for this year.
BG's partner in Brazil, state-run Petrobras,posted a 53 percent rise in fourth-quarter net profit on Monday,helped by unexpected financial gains and, like BG, guided thatproduction will be flat in 2013.
BP also published fourth-quarter results on Tuesday, beatingexpectations thanks to a record performance from refining.
BP (BP.)
