BG Q3 Output Falls

27 October 2009 (Last Updated October 27th, 2009 18:30)

British gas producer BG Group has posted a smaller-than-expected rise in output but a lower-than-forecast drop in third-quarter profits. BG said that production grew by 5% in the quarter to 615,000 barrels of oil equivalent per day (boepd), some of which was down to a delay in the star

British gas producer BG Group has posted a smaller-than-expected rise in output but a lower-than-forecast drop in third-quarter profits.

BG said that production grew by 5% in the quarter to 615,000 barrels of oil equivalent per day (boepd), some of which was down to a delay in the startup of a Tunisian gas project.

BG's shares traded down 2.2% at 1,108 pence at 08.27 GMT, lagging a 0.86% drop in the DJ Stoxx European oil and gas sector index, reported Reuters.

BG said that net profits in the quarter fell 44% to £484m ($794.6m) as gas and oil prices plummeted, although its underlying profits beat forecasts.

BG's shares have been lifted in the past year by big oil finds in Brazil. Tests on the Tupi Sul field had exceeded expectations, showing excellent reservoir performance with good flow rates, BG said.