Home' Trinidad and Tobago Guardian : August 10th 2014 Contents AUGUST 10 • 2014 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
NEWS | SBG7
With help from its T&T operations, total pro-
duction by Britain's BG Group reduced by 10
per cent to 591,000 barrels of oil equivalent
a day, chief financial officer Simon Jonathan
Lowth said on the company's second quarter
(Q2) 2014 earnings call on July 31.
"The contribution from our base assets fell by 17 per cent to 493,000
barrels of oil equivalent a day, driven primarily by declines in Egypt
and the US, together with a higher number of shutdown days in T&T
and in Tunisia. These reductions were only partially offset by the
ramp-up of production from new developments, including Brazil,
Bolivia and the UK, although the performance from Jasmine has been
However, the BG Group remains undaunted about prospects in T&T.
BG Group interim executive chairman Andrew Gould, who spoke before
Lowth, had said that in Q2 2014, "We continue to expand our presence
in the Caribbean region, securing frontier acreage offshore Aruba. We
also farmed into two blocks offshore T&T, further expanding our
presence in country."
Before giving production highlights, Lowth was speaking about the
company's overall financial results.
"We've delivered a good set of results, with exploration and production
(E&P) benefiting from the growing proportion of oil in our portfolio
and liquified natural gas (LNG) performance reflecting additional cargo
deliveries and favourable realised prices," he said.
On business performance, he said total operating profit was up 11
per cent to US$2 billion, driven mainly by LNG Shipping & Marketing
operating profit, which was up 44 per cent.
Free cash flow improved by 16 per cent, mainly as a result of lower
capital investment, principally in Australia, reflecting the group's lower
equity share in the project and the completion of the majority of the
pipeline in 2013, he said.
Business performance earnings per share were 22 per cent higher
at US$0.355, resulting from the improvement in total operating profit,
coupled with a lower tax charge.
This reflects an expected 1.0 per cent reduction in the full year
effective tax rate to 40 per cent.
Total earnings per share was 64 per cent higher at US$0.401, and
this included a net gain of US$170 million arising from the sale and
leaseback of the company's LNG vessels.
Upstream operating profit fell by 2 per cent to US$1.2 billion, he
said. E&P revenues benefited from a combination of higher realised
oil prices, together with the higher proportion of oil in the portfolio,
However, the increase in revenue was almost entirely offset by
increased E&P costs. Liquefaction profits were 37 per cent lower,
reflecting the reduced throughput at Egyptian LNG.
E&P costs increased by US$320 million, and royalties and other
operating expenses rose by US$120 million, mainly as a result of the
increased production from royalty-paying fields and higher oil prices,
whilst other E&P costs increased by US$247 million. Aleem Khan
Executives of the state-owned T&T Elec-
tricity Commission (T&TEC) travelled to
Colombia for a three-day visit from July 8
to 11 to meet manufacturers of products for
the energy sector, Proexport Colombia con-
firmed in a series of e-mail messages and
telephone conversations from July 11 to
"Representatives of the T&TEC will devel-
op a trade agenda with visits to local energy
companies and manufacturers of items for
this sector. The meetings are organised by
Proexport Colombia," the Colombian state-
owned export promotion company had said
on its Web site.
Asked about the success of the meetings,
Proexport, which is usually eager to tell of
the success of its trips, referred this one to
T&TEC. When contacted, the local electricity
company failed to account for its executives'
trip to Colombia, and refused to answer
questions on the trip that took them to the
two Colombian cities of Bogota and Medellin.
T&TEC communications manager
Annabelle Brasnell who initially said she
would "try to respond" to the e-mail query
on July 11 did not respond to follow up mes-
sages on July 18 or 22. By August 4, an auto-
responder saying she would be out of office
referred queries to acting manager Clare
Cooper who also failed to respond.
Also, the web page at http://www.proex-
had the announcement about the trip stopped
working, although Proexport's new publicity
agency said in an e-mail "the article was
not deleted from the platform, but rather it
was updated with more recent activity. This
news piece was part of the Proexport agenda
that is updated on a weekly basis and it
might have been changed the second time
you attempted to access the information;
which is why it wasn't there." When asked
for the new link, none was provided.
Writing on behalf of Carlos Gonzalez,
director of Proexport Colombia, Roxana Ruiz,
a client executive at Burson-Marsteller, Puerto
Rico said: "We have passed on your contact
information to T&TEC and they will be get-
ting in touch directly with you. However, if
you would like to obtain more information
on the electrical sector of Colombia, we
would gladly provide that information upon
request." Aleem Khan
T&TEC execs travel to Colombia to meet manufacturers
days push BG Group
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