OIL and gas operator BG Group said yesterday the strength of its integrated gas business was reflected in the resilience of its profits and cash flow in a challenging economic environment.
Chief executive Frank Chapman said BG had continued to make progress in key growth areas, with the acquisition of Pure Energy in Australia, continued exploration success in Brazil and the development of projects across its portfolio.
BG said first-quarter 2009 income of £3.095billion was in line with 2008 as stronger gas markets helped to offset lower oil prices.
Pre-tax profits for the period were £1.247billion, down from £1.352billion 12 months earlier.
BG said its liquefied natural gas and transmission and distribution businesses posted strong profits, while in exploration and production, favourable exchange rates helped to mitigate weaker oil prices, a higher exploration charge and lower output.
It said capital investment in the quarter of £1.311billion included £464million on the acquisition of Pure, and continuing exploration and production outlay of £711million. It said capital investment during the quarter included £102million in the UK.
BG added that production guidance for the year was unchanged at 680,000 barrels of oil equivalent per day, with new projects due on stream later in the year and other production opportunities in the portfolio.