- BG Group (OTCQX:BRGXF, OTCQX:BRGYY) reports a Q4 net loss of $5B compared with a net loss of $1.08B in the prior-year quarter, and will delay or cancel projects in 2015 and cut capital spending by ~30% to $6B-$7B.
- BG says it recorded an $8.9B after-tax impairment on assets in Australia because of low prices; ~$6.8B of the writedown was related to a reassessment of BG's big bet in Australia, where the company has just started the giant QCLNG project to convert coal-seam gas to liquefied natural gas for export.
- Q4 production slipped 0.8% to 630K boe/day due to lower volumes from the U.K. North Sea, Egypt and Kazakhstan.
- "While there are material impairments today, we think the market will look through them," Bernstein analysts say, as recent positive news on newly opened projects, including the first cargo exports from QCLNG and declaring a key Brazilian oil find as commercial, put the company in position to deliver returns.