British energy firm troubled by Egypt

July 26, 2013 at 9:31 AM

LONDON, July 26 (UPI) -- The Egyptian political crisis and civil unrest is creating difficulties for energy companies trying to work there, British energy company BG Group said.

BG Group was one of the energy companies pulling some staff out of Egypt following the government takeover by the nation's military in early July. Egyptian newspaper al-Ahram reports former Egyptian President Mohamed Morsi was detained Friday on allegations he was collaborating with Hamas.

The company reported second quarter earnings Friday. It said net profits declined to $986 million, down 1.4 percent from the same time last year. Production declined 2.4 percent to 59.8 million barrels of oil equivalent during the second quarter.

BG Group Chief Executive Officer Chris Finlayson said the crisis in Egypt was the cause of some of the difficulties. Offshore operations were not affected by the situation in Egypt, though exports of liquefied natural gas have declined for the company.

"Events in Egypt remain a primary concern and will continue to be so as the political, social and business environment evolves," he said in a statement.

Finlayson said some of the issues in Egypt were offset by production gains in countries like Brazil, Tanzania and Australia.

"We are making good headway on our major growth projects," he said in a statement.

Related UPI Stories
Latest Headlines
Trending Stories
House Majority Leader Kevin McCarthy drops bid for speaker
WikiLeaks offering $50K for video of Afghan hospital bombing
Murdoch sorry for implying Obama's not a 'real black president'
Reid sues exercise companies over eye injury
Lumber Liquidators to pay $10M in DOJ settlement