Boosted by higher profits, gas producer the BG Group has beat forecasts by registering a 13 percent growth in Q4 profits and have raised its production target for 2011 on its confidence in the US and Brazilian assets.
In a company supplied forecast of 14 analysts, earning projection for the quarter was $924 million while it reported a net profit of $1.06 billion for Q4, 2010. This is comparable with a net profit of $931 million that the company reported in Q4, 2009.
Reiterating its previous statement, BG – which produces about one-third of Egypt’s total gas, said that the ongoing strife in the country had no material impact on its operations in the North African country.
The company has also nearly doubled its gas production target in the next five years from its shale gas assets in the US and hiked its gas production target in Brazil by 37.5% by 2020. The group is well on its way of increasing its exploration and production target by 7% each year.
The company’s 2 percent drop in production for the quarter was more than offset by better price realization and it managed to sell gas at the international and the domestic market at higher prices of 22% and 18% respectively, over last year.
At Monday’s closing price, BG Group is valued at £48.3 billion.