Earnings for BG however took a major blow due to depressed commodity prices, as the company had reported earnings of $758 million in same quarter a year ago.
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The oil and gas producer operating in over 20 countries, and the subject of a takeover offer by Royal Dutch Shell PLC, reported earnings before interest, tax, depreciation and amortisation of USD1.24 billion in the third quarter of 2015, down 37% from USD1.98 billion a year earlier but ahead of the analyst consensus which estimated Ebitda of USD1.15 billion.
The firm is dealing with an oil price that has halved over the previous year, due to oversupply and limited demand.
Free cash flow remained in the negative, though it improved by $224 million to a $705 million outflow. Liquids prices were also down about 50 percent, while gas was about 35 percent lower. Production in Norway continues to increase and averaged 13,000 barrels a day in the quarter.
The sliding prices were partly offset by 26 percent higher exploration & production volumes and a 76 percent surge in LNG deliveries.
BG reported an adjusted net income of $280 million or an adjusted EPS of $0.048.
Notably, the company upped its outlook for full-year E&P production volumes to 680 – 700 kboed from continuing operations, to reflect strong progress towards ramping-up operations in Brazil and Australia. LNG guidance was maintained.
The company also remains on track to deliver a minimum of USD300.0 million of cost savings before the end of 2015.
“That is partially about disciplined investment and managing our portfolio to really focus on these investments (in Brazil and Australia) that drive value in a period of low oil prices”, Chief Financial Officer Simon Lowth said.
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The company, which typically gives a yearly capital expenditure guidance at full-year results, said it would be “meaningfully lower” in 2016 than the $6.5 billion it intends to spend this year.
