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BG Group avoided the 60% profit crashes at larger rivals BP and Shell during the winter as it busied itself shipping liquefied natural gas (LNG) supplies to the US and Europe.
The international gas explorer and producer today reported a profit fall of 9% to £1.27 billion in the first three months of 2009, narrowing the gap with Shell, which plunged to £2 billion, and BP, down at £1.75 billion in the quarter.
While BG's production revenues slumped 38% on lower prices and higher costs, much of the shortfall was made up at its LNG operations, where profits soared 46% to £578 million. LNG is reckoned to be a major energy solution, liquefying gas to a fraction of its volume, enabling it to be shipped long distances rather than moved through expensive pipelines.
“The strength of our integrated gas business is reflected in the distinctive resilience of our profits in this challenging economic environment,” said chief executive Frank Chapman.
