BG rides high on soaring oil prices |
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Thu, 28 Jul 2005 21:05
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LONDON: Oil giant BG group has reported that it would be rewarding investors with a 10 per cent dividend as the group had made a huge 44 percent profit which took its earnings to £545 million in the first half of the year as compared to last year's £379 million.
This massive surge in profits is a direct result of the soaring prices in the international oil market. BG, which supplies close to 7 percent of the total gas demand in the UK has simply cashed in on the uncertainty in the oil market even as customers are reeling from the huge bills.
Commenting on the group's performance in the first six months of the year, Chief Executive, Frank Chapman said, "BG Group has delivered strong earnings, up 44 percent for the half year, driven by underlying growth and firm prices. Good progress has been made on key projects and BG Group's growth programme remains firmly on track."
High production volumes also played a part in the overall profits scheme. Even though the transmission and distribution operation was marginally affected by the weakening dollar, the net performance remained strong.
BG remained optimistic of acquiring full ownership of the Brindisi regasification scheme in Italy and has invested £730 million towards expansion of its operations. Out of this £234 million has been allotted to the Mediterranean basin and Africa, while £165 million has been kept aside for the North American and Caribbean operations.
The Reading-based BG Group had been carved as an independent wing from parent British Gas in 1997 and is estimated to have 1.2 million shareholders.
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