Helal Miah, investment research manager at The Share Centre, picks BG group as share of the week.
Despite the recent downward revision of BG Group’s 2012 and 2013 production estimates, we continue to recommend the company as a ‘buy’ for medium risk investors looking for growth. Investors could consider the fall in the share price as a good buying opportunity for a long term investment.
BG Group has good exploration progresses in Australia, Brazil, India, Kenya and Uruguay and further discoveries have been made in Tanzania. The sale of its 40% interest in Queensland liquefied natural gas project is positive as it has run into difficulties on occasions.
The company’s large projects in Brazil and Australia remain on schedule despite production issues at other operations. At the beginning of the year first production at the Sapinhoa field began on schedule and on budget, with production at another block due in the second half of 2013.