BG Profits Plunge

28 July 2009 (Last Updated July 28th, 2009 18:30)

UK gas producer BG Group reported a 31% drop in second-quarter net profit today as gas and oil prices fell sharply. The company also said that lower gas demand meant it would not meet its 2009 production target. BG made a second-quarter net profit of £513m ($842m), down from

UK gas producer BG Group reported a 31% drop in second-quarter net profit today as gas and oil prices fell sharply.

The company also said that lower gas demand meant it would not meet its 2009 production target.

BG made a second-quarter net profit of £513m ($842m), down from £747m in the same period last year.

In line with some analyst predictions, BG said that it would not be able to meet its 2009 production target of 680,000 barrels of oil equivalent per day.

The company did, however, manage to lift production 7% in the quarter, compared with the same period in 2008, to 643,000 barrels of oil equivalent per day thanks to new projects coming online.