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BG shows short-term vulnerability, long-term promise

While a recent production update from Brazil's Petrobras shows BG Group's long-term potential, there's no end in sight to the company's problems in Egypt
June 11, 2014

What's new:

• Encouraging well results from Brazil

• LNG projects in Australia on track

• Commodity and foreign exchange exposure hedged

IC TIP: Sell at 1235p

For years, BG (BG.) enjoyed a relatively unblemished operational record. In January, however, the group issued its fourth profit warning in less than 18 months, leading to accusations that chief executive Chris Finlayson had taken his eye off the ball. This was perhaps unfair, given that he had only taken over the reins from Sir Frank Chapman a year earlier. But by the end of April, Mr Finlayson had resigned, leaving group chairman Andrew Gould in the role on a temporary basis.

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