BG Beats 1Q Estimates after Losing CEO
LONDON, May 1 (Reuters) – British oil and gas company BG Group reported a lower-than-expected drop in first-quarter profit on Thursday, just days after its chief executive resigned.
The FTSE 100 company saw a 6 percent fall in operating profit to $2 billion but beat consensus forecasts and reassured investors its big projects were on track to help meet its 2014 production target of 590,000-630,000 barrels of oil equivalent per day.
The company has cut its output forecast several times in the last two years, resulting in a profit warning earlier this year.
Shares in BG were trading 3 percent higher at 1,235 pence at 1144 BST, one of the top four risers on the FTSE 100.
"Following the surprise departure of the CEO this week, BG's Q1 results should prove reassuring for investors," said analysts at Bernstein Research.
The Reading-based company lost chief executive Chris Finlayson earlier this week after just 16 months in the job and has begun the search for a successor at a time when the firm is under pressure to restore its reputation.
"The search is under way, we are ready and we will wait to get the right CEO," interim executive chairman Andrew Gould told reporters.
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