BG Group Beats Production Targets but Profit Slips

LONDON—Oil and natural gas company BG Group PLC, which is being taken over by Royal Dutch Shell PLC, said Friday that it had exceeded its production targets for the year thanks to projects in Brazil and Australia.

BG, the U.K.'s third-largest oil and gas company, said production was up 16% in the full year at 704,000 barrels of oil equivalent a day, driven by offshore oil fields in Brazil and the giant Queensland Curtis liquefied natural gas project in Australia.

The company had previously guided for 680,000 to 700,000 boe/day.

It came as BG reported a 22% fall in its underlying earnings in the fourth quarter due to the sharp decline in oil prices in the period.

BG's closely watched profit excluding exceptional items such as disposals and impairments fell to $1.43 million in the quarter from $1.83 million a year earlier.

Revenue for the fourth quarter was little changed at $4.22 billion compared with $4.21 billion in the same period a year earlier.

The Shell deal is expected to be completed on Feb. 15.

Write to Selina Williams at selina.williams@wsj.com

(END) Dow Jones Newswires

February 05, 2016 03:05 ET (08:05 GMT)

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