Oil giant BG Group yesterday revealed better than expected results for the first quarter after the shock resignation of its chief executive at the start of the week.
The UK’s third-largest oil and gas producer said first-quarter output fell 4% to 633,000 barrels of oil a day although a 3% drop in operating profit to £680.6million beat analysts earnings estimates.
The firm, which employs 500 on and offshore in Aberdeen, saw its chief executive Chris Finlayson resign for “personal” reasons, although the immediacy of his departure raised speculation
BG chairman Andrew Gould said yesterday that he resigned amid disagreements with the board over the speed at which he was implementing the company’s strategy.
Mr Gould added that there would be “no sacred cows” as the oil producer considers selling assets to boost shareholder returns.
His exit after a little more than a year in the job prompted analysts including RBC Capital Markets to speculate that BG may become an acquisition target or sell assets.
But analysts at Investec considered this “unlikely”, adding: “After the shock resignation of Chris Finlayson, there had perhaps been a fear that Q1 might have seen another car crash.
“In the event, the results were absolutely fine, making his exit all the more mystifying.”
A spokesman in Aberdeen said: “Our North Sea business quietly delivered a solid first quarter, accounting for 20% of group production.
“The UK operated assets – Armada, Everest, and Lomond – performed well, as did our non-operated interests.”