LONDON, Oct 28 (Reuters) - Britain’s third-biggest energy company BG Group reported a worse-than-expected 26 percent fall in third-quarter operating profit on the back of a continued decline of production in Egypt and a steep drop in oil prices.
Total operating profit came to $1.3 billion in the third quarter, undershooting a company-provided consensus of $1.4 billion, while revenue rose 4 percent to $4.6 billion as BG was able to substantially increase oil output from Brazil to more than 100,000 barrels of oil equivalent per day.
The group also reiterated its full-year guidance.
“Our developments in Brazil and Australia are progressing well and, in the case of Brazil, beginning to have a material impact on our business,” said BG Group’s interim Executive Chairman, Andrew Gould.
The energy firm appointed former Statoil chief executive Helge Lund this month to head up the company from March next year.
Major oil producers are under intense scrutiny as they are expected to present cost-cutting strategies to shield earnings from a steep drop in oil prices.
Oil companies have seen billions wiped off their stock market values as crude prices dropped 25 percent over the past four months due to slowing global demand particularly in China and ample supplies. (Reporting by Karolin Schaps; editing by Kate Holton)