Profits slipped at BG Group in the second quarter despite oil and gas production reaching record levels.
And ExxonMobil brought down the curtain on a gloomy week for the industry, recording its worst quarterly performance in six years against the backdrop of the oil price downturn.
BG, which is being taken over by Shell in a £45billion deal, produced 703,000 barrels a day during the quarter, up 19% year-on-year.
The increase was spurred by BG’s ventures in Brazilian and Australian, where output rose by more than half during the three months.
In the UK, the company pumped out 102,000 barrels, down 8.9% against Q2 last year, but up 32% on the first quarter of 2015.
BG chief executive Helge Lund said several UK North Sea fields that were under repair had returned to action in the three months ended June 30, leading to the jump in quarter-by-quarter production.
Mr Lund, who took over in February, just weeks before the Shell takeover was announced, said production from the Knarr FPSO in the Norwegian North Sea went up, as well.
The production surge has convinced BG, the UK’s third-biggest oil company, to lift its full-year output forecast to “the upper half” of its previous range of 650,000 to 690,000 barrels per day.
Mr Lund acknowledged that the upstream business had “felt pressure from lower commodity prices”, however.
Brent crude was priced at just over $60 per barrel in the second quarter, 42% lower than in 2014.
Revenues at BG, the UK’s third-biggest oil company, fell 25% in the first half to £5.1billion, and by 28% in the second quarter to £2.5billion.
The group recorded earnings of £635million during the six months, a 58% slump year-on-year, while second quarter income slipped further by 65% to £275million.
BG chief financial officer Simon Lowth said upstream put in a “resilient” performance across the asset base and that the firm had kept a pretty tight lid on costs while continuing to manage efficiency
Mr Lund said the performance reflected BG “actions to stabilise and de-risk the business”, adding that the management team is still determined to deliver on its full-year targets.
He confirmed that the Shell takeover is on track to be completed early next year.
Shell has already secured regulatory approval from Brazil, South Korea and the US to proceed with the takeover, but is yet to be given the go-ahead by Australia, China and the EU.
Yesterday, Shell chief executive Ben van Beurden, said the deal would act as a “springboard” to transforming the Anglo-Dutch giant into a simpler and more profitable company.
He warned, however, that Shell will “take a very good look” at some of its older, more expensive North Sea assets as part of its plans for a £19billion sell-off over the following two years.
Earlier this week, Shell announced plans to cut 6,500 employees from its global workforce, while Centrica said it would axe 6,000 jobs over five years.
The value of BG shares had risen 0.88% to £10.89 on the London stock exchange by noon yesterday.
At US energy major ExxonMobil, net income plunged to £2.7billion in the second quarter from £5.6billion a year earlier due to low oil prices.
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