BG Group cuts 2014,2015 output guidance. Issues profit warning.
January 27, 2014 10:13 am
BG Group (BG.L) issued disappointing revise output targets for 2014 and 2015 this morning along with a profit warning, citing Egyptian turmoil. the company relies on Egypt for about 1/5 of its earnings. The news prompted a heavy sell off of the shares this morning.
BG said it expected to produce between 590,000 and 630,000 of barrels of oil equivalent per day (boed) this year, as much as 12 percent lower than currently expected by analysts and as much as 7 percent below its 2013 production.
The group also cut its 2015 guidance to between 710,000 and 750,000 boed, from a target of 775,000-825,000 boed given in May.
“Despite the good progress we have made in 2013 we face short-term issues which are reflected in our revised 2014 guidance. This is very disappointing,” Chief Executive Chris Finlayson said.
BG Group (BG.L) issued disappointing revise output targets for 2014 and 2015 this morning along with a profit warning, citing Egyptian turmoil. the company relies on Egypt for about 1/5 of its earnings. The news prompted a heavy sell off of the shares this morning.
BG said it expected to produce between 590,000 and 630,000 of barrels of oil equivalent per day (boed) this year, as much as 12 percent lower than currently expected by analysts and as much as 7 percent below its 2013 production.
The group also cut its 2015 guidance to between 710,000 and 750,000 boed, from a target of 775,000-825,000 boed given in May.
“Despite the good progress we have made in 2013 we face short-term issues which are reflected in our revised 2014 guidance. This is very disappointing,” Chief Executive Chris Finlayson said.
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