Image courtesy of BG Group/Flickr.

BG reported a nearly $6 billion non-cash impairment charge Tuesday tied to falling oil prices as it booked an overall net loss of $1 billion in 2014.

Fourth quarter revenue and other operating income dropped 19 percent over last year to $4.4 billion from $5.42 billion while total operating profit slid 36 percent to $1.22 billion.

Upstream revenue dropped 42 percent from $1.11 billion in 2013 to $645 million in 2014.

Full year revenue ticked up 2 percent over 2013 to $19.54 billion.

Net cash flow from operating activities dipped by $418 million as a result of lower operating profit that was partly offset by
lower working capital cash outflow.

Earnings per share in the fourth quarter dropped by 20 percent to 26.8 cents per share and full year earnings per share fell 8 percent to $1.18 per share.

The company will delay or cancel an unspecified number of projects in 2015 and slash capital expenditures by about 30 percent, BG CEO Andrew Gould said.

BG signed agreements for non-core asset disposals totaling $6.6 billion with $1.1 billion of those deals completed in 2014.

The company expects to produce 650,000 to 690,000 barrels of oil equivalent per day in 2015.

BG’s stock has fallen about 30 percent over the last year after the company revised its production guidance downward and issued a series of profit warnings.

“In the last six months the world has changed. After four years of prices above $100 we’re now operating above $50 a barrel,” Gould said.


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