BusinessCompany NewsBG Group rocked by £104m write-down

BG Group rocked by £104m write-down

FTSE 100 energy giant suffers damaging blow in the wake of corruption inquiry at Italian plant project

BG Group has announced
a post balance sheet write-down of more than £100m after legal problems put a
£325m liquiefied natural gas plant construction project on hold.

The FTSE
100
 giant’s development at the Italian port of Brindisi was closed down in
February after Italian police arrested the chairman of BG Group’s Italian unit,
two former managers, and a former mayor of Brindisi as part of a corruption
investigation
Reuters
reported.  

BG said: ‘Details of post balance sheet events concerning BG Group’s Brindisi
LNG project are set out in the annual report. These post balance sheet events,
of a legal and administrative nature, have given rise to an impairment provision
of £104m in BG Group’s audited financial statements for the year ended 31
December 2006.’

The group added: ‘BG Group continues to pursue BLNG which it regards as an
attractive project that will bring significant benefits to both Italian gas
consumers and BG’s shareholders.’

Further reading:

HSBC suffers $11bn impairment blow

Accounting scandal wipes £11m off
McAlpine’s books
 

Cadbury resolves Nigerian debacle

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