BG Group scraps dividend as low commodity prices bite

Construction-Energy-Oil-Fuel-700x450.jpgBG Group has scrapped its dividend amid the impact of the fall in commodity prices.

In the company’s last results update before its takeover by Shell, BG said there was “no final 2015 dividend” but shareholders would receive Shell’s 2015 fourth-quarter dividend.

BG Group reported earnings before interest, tax, depreciation and amortisation for 2015 of $5.63bn (£3.87bn), down 39 per cent year on year. Earnings before interest and tax was down 62 per cent to $2.43bn.

However, the firm made a profit before tax for the full year of $2.97bn, compared to the loss of $2.33bn a year ago.

Despite the negative results, BG chief executive Helge Lund says he is positive on the firm’s “strong operational performance”, which is in line with the guidance for the year.

Lund says: “The addition of new low cash cost volumes in Brazil and Australia and delivery of our operating and capital cost savings has helped to partly mitigate the impact of lower commodity prices.”

The group’s LNG Shipping and Marketing business delivered 282 cargoes, an increase of 58 per cent on 2014, “in difficult market conditions”, says Lund.

He says: “This strong operational performance is the result of the capability and commitment of our teams across the organisation and we will deliver a high-performing business into the combination with Shell”.