* Underlying profit $1.01 billion, vs forecast $1.24 bln
* Sees only "modest" production growth in 2011
* Shares down 1.9 percent, hit lowest since Feb
(Recasts first paragraph, adds CEO comments, updates shares)
By Tom Bergin
LONDON, May 10 (Reuters) - Civil unrest in Egypt and Tunisia hit production and profits at British gas and oil producer BG Group Plc in the first quarter and forced it to cut its output growth forecast for this year.
Underlying pretax profit fell 8 percent, the company said on Tuesday in an update that missed forecasts and knocked 1.9 percent off the company's shares.
They traded at 1,408 pence by 1030 GMT after falling as low as 1,365.5, their lowest since early February.
BG said its profit excluding non-cash accounting charges fell to $1.01 billion, compared with a forecast for $1.24 billion in a Reuters poll.
The company said gas and oil production fell 5 percent as disorder in Egypt and Tunisia curbed operations at its liquefied natural gas (LNG) production facilities there.
Chief Executive Frank Chapman said he did not expect BG to be punished for its association with the previous administrations and that the new governments needed companies like BG to provide the investment the countries needed.
"I have every expectation that we will, engaged as we are with the current interim administration period, sustain our long term interests in both countries," he told reporters on a conference call.
North Sea field maintenance and extensive flooding in Queensland, Australia, where it produces gas, also weighed on output.
BG now only expected modest production growth in 2011.
Previously, the company had indicated 7 percent per annum long-term growth.
"The plans for a ramp-up in production in 2012 and 2013, as well as our 2020 goals, are unaffected," he said.
Analysts at Bernstein, who described the results as a "messy miss", said they still forecast 2001 growth of 3.5 percent, 12 percent in 2012 and, on average, 14 percent each year from 2010 to 2015.
"Consequently, we continue to rate BG Outperform with a £16.70 price target (NAV derived) and it remains one of our top picks in the sector," the brokerage said in a research note.
An increase in British North Sea taxes also hit profit. Stuart Joyner, oil analyst at Investec, said he had reduced his estimated 2011 earnings per share by 10 percent following a review of the statement and incorporating the impact of the UK tax hike. (Editing by Dan Lalor and Andrew Callus)