Profits cool down for BG

04-05-2007

Profits cool down for BG
Energy production and distribution company BG Group has revealed a 14 per cent drop in pre-tax profit in the first three months of the year.

Compared to the first quarter of 2006 when the Reading-based firm brought in £958 million, early 2007 saw a drop to £823 million in its pre-tax income.

The decrease in profits has been blamed on weaker exchange rate due to the flagging US dollar and lower commodity prices.

"BG has delivered a good operating performance against a background of softer commodity prices and a weaker US dollar," BG Group's chief executive, Frank Chapman, said.

The first three months of 2007 also saw capital investment of £869 million for the firm – investment that BG Group says will contribute to long-term growth plans.

Acquisitions included £431 million of power plant purchases in the US and Italy as well as exploration and production acquisitions of £67 million in the UK.

"In addition, the ramping up of production from Buzzard, a new liquefied natural gas supply agreement from Nigeria…represent solid progress against our long-term growth programme," Mr Chapman added.



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