BG Group drilling plans set to excite investors

Nick Raynor, investment adviser at The Share Centre explains why today's update from BG Group confirms his ‘buy' recommendation.

"BG Group today reported its fourth quarter total profits grew by 3% due to higher energy prices and a lower exploration charge, taking its total profits for the year to $6.93bn - a 9% increase on 2009. 

"Looking ahead, the year looks promising for BG Group which plans to drill in Australia, China, Egypt, Norway, Tanzania and the US. With this in mind, it's set to be a productive and exciting year for the business.

"Looking further ahead, BG Group highlights that its current oil reserves will sustain for the next 69 years. This highlights BG's previous growth and strong base for future out performance. 

"For investors the future looks strong for BG Group. It has rewarded them for their loyalty with a dynamic new drilling programme for 2011, which combined with a 10% increase in its dividend means we find the company an exciting one to follow and confirms our decision to list BG as ‘buy'.