BG reports loss for first time since 2000 on Egypt charge

BG Group Plc, the U.K.’s third-largest natural-gas producer, reported a quarterly loss for the first time since 2000 as Egyptian exports were disrupted and costs rose.

The net loss was $1.08 billion in the fourth quarter, compared with net income of $1.74 billion a year earlier, the Reading, England-based company said today in a statement. BG will write off $2.4 billion in assets in Egypt and the U.S.

Chief Executive Officer Chris Finlayson has faced hurdles to restoring value at BG, whose shares are trading 33 percent below their 2011 high. In Egypt, which accounts for about 18 percent of production, gas has been diverted away from export terminals to the domestic market amid political unrest. In Brazil and Australia, costs are rising as the company expands.

BG has to “address the near-term challenges we face in Egypt, and deliver our plans consistently and effectively,” the CEO said in the statement. “Our capital expenditure will begin to decline in 2014 and we continue to expect to be free cash-flow positive in 2015.”

The loss was the first since BG reported a 60 million-pound ($98 million) loss in the second quarter of 2000, according to its website. Profit excluding disposals and one-time items rose to $1.14 billion from $1.03 billion a year earlier, BG said.