With production likely to fall at the lower end of forecasts, and higher costs and lower global energy prices into the bargain, upcoming full-year figures from BG (BG.) aren't likely to please analysts. Read between the lines, however, and the group's longer-term prospects may look sounder.
There was a time when BG could do no wrong - at least from an operational perspective. But the last 18 months have provided a range of challenges, and the group even had to declare force majeure on its Egyptian assets a year ago. Although entirely beyond BG's control, that move weighed heavily on its share price as the Egyptian assets then accounted for roughly a third of total gas output.
Fortunately, however, the group was able to report a series of positive developments late last year. These included the appointment of former Statoil boss, Helge Lund, as chief executive, successful multi-billion dollar sales of non-core assets, and the first gas shipments from the giant Curtis Queensland LNG project in Australia. Further good news came in January with confirmation that the Egyptian authorities had stumped up a $350m (£233m) payment - equivalent to around a third of the outstanding amount owed to BG.
