BG Group PLC's operating profits rose 20% in third quarter

Nov. 15, 2001
BG Group PLC has announced its third quarter results for 2001, maintaining a strong performance for the year with substantial growth in profits and earnings.

By the OGJ Online Staff

LONDON, Nov. 15 -- BG Group PLC has announced its third quarter results for 2001, maintaining a strong performance for the year with substantial growth in profits and earnings.

Total operating profit rose by 20% to £202 million. Underlying performance has continued to improve and, excluding the impact of changes in gas and oil prices in the upstream business, the group's total operating profit rose by 18%. Earnings increased to £102 million and earnings per share rose by 18% to 2.9 pence.

The main development during the quarter under review was a conditional agreement to acquire Enron Corp.'s Indian upstream operations for $388 million. The assets to be acquired are a 30.5% interest in Tapti gas field and in Panna-Mukta oil and gas field and a 62.64% interest in the CB-OS/1 exploration license.

The third quarter also saw the start of a design study for a $900 million Egyptian liquefied natural gas project that will be 50:50 owned and operated by BG Egypt and Edison International SPA. The planned capacity of the LNG train is 3.6 million tonnes/year. Startup would be in 2005.

The gas will come from Sapphire field, which BG operates and owns jointly with Edison. It is the first gas-condensate field in the West Nile Delta.

BG Group Chairman Richard Giordano said, "BG Group continued its delivery of strong profit and earnings growth in the third quarter, building on the solid performance achieved in the first half of the year."