BG profits up 140%The energy industry could slow down its North Sea investment in reaction to plunging oil prices and soaring costs, BG Group warned today as it reported a 140% increase in quarterly operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before . Frank Chapman Frank Michler Chapman (June 12, 1864 – November 15, 1945) was a U.S. ornithologist. Chapman was born in West Englewood, New Jersey and attended Englewood Academy. He joined the staff of the American Museum of Natural History in 1888 as assistant to Joel Asaph Allen. , chief executive at the exploration and production company, said it did not make sense to plough plough: see plow. ahead with some new projects when service costs were at the top of a cycle. "We expect people to be quite careful about the timing of their investments," he said, adding that service companies might lose their strong negotiating power as crude prices come down. BG would not identify North Sea schemes that might be affected, but it said the third phase of the Karachaganak scheme in north-west Kazakhstan could be put back. Chapman was speaking after BG reported third-quarter earnings for the period of £857m, up from £357m, while group total operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. rose 106% to £1.38bn. Shares in the company rose 6% to 956p, and some City analysts are predicting they are worth as much as 1600p. The company denied the profits indicated it was profiteering prof·it·eer n. One who makes excessive profits on goods in short supply. intr.v. prof·it·eered, prof·it·eer·ing, prof·it·eers To make excessive profits on goods in short supply. at the expense of the British householder or motorist, pointing out that the bulk of the earnings came from overseas and it was one of only 40 wholesale gas suppliers in the UK. Chapman said BG had achieved an average gas price of 35p per therm therm (therm) a unit of heat. The word has been used as equivalent to (a) large calorie; (b) small calorie; (c) 1000 large calories; (d) 100,000 British thermal units. over the quarter and 34p across the year so far compared with spot prices that hit 100p in Britain. He declined to predict where oil values might go, but said the current level of around $60 per barrel, while down from a summer high of $147, was not low by historic standards. The company has achieved major successes in its exploration and production work, particularly off the coast of Brazil, where it has an important position in the exciting new prospects of the Campos Basin Campos Basin is a petroleum rich area located offshore of Rio de Janeiro, Brazil. It has a total area of 100,000 km², with 40 fields discovered and operated by Petrobras. Two major oil fields are Marlim and Albacora. . The group estimates it has more than 3bn barrels of oil equivalents in proven reserves, at the top end of previous forecasts of between 2bn and 3.5bn. Success in Brazil has helped BG make predictions that it can increase its overall production of oil and gas by between 6% and 8% annually until 2020. The oil and gas producer said its overall output rose 11% in the third quarter to 587,000 barrels of oil equivalent per day, compared with falling output at most rivals. Shell's production fell 7% in the third quarter, while Exxon Mobil's was down 8%. Richard Griffiths Richard Clewin Griffith (22 July 1872, London – 11 December 1955, Hendon, London) was a British chess player, author and editor. He won the British Chess Championship in 1912 at Richmond, at his only appearance in the event. , analyst at Evolution Securities, said the financial results were "ahead of forecasts" and the company offered good value for the future. "If the shares don't perform on the back of business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point then the risk of a bid provides a backstop. We keep our buy recommendation and price target of 1600p," he said in a research note. 
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