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Strategy and Q1 Results 2008 – BG Group

BG Group · Apr 30, 2008 · 47 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Strategy and Q1 Results 2008 – BG Group – slide 1
    BG Group Strategy and Q1 Results 2008
  2. Strategy and Q1 Results 2008 – BG Group – slide 2
    Legal Notice Certain statements included in this presentation contain forward-looking information concerning BG Groups strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the…
  3. Strategy and Q1 Results 2008 – BG Group – slide 3
    The Integrated Gas Major Key messages Very strong first quarter results Progress made on growth programme Broad portfolio of long-term options Robust strategy delivering value to shareholders Delivering value to shareholders 3
  4. Strategy and Q1 Results 2008 – BG Group – slide 4
    The Integrated Gas Major Overview Strategy Business segments Portfolio for growth Q1 2008 results 4
  5. Strategy and Q1 Results 2008 – BG Group – slide 5
    Strategy Integrated Gas Major Integrated Gas Major Connect gas to Secure competitively high value markets priced resources Build & access markets Equity reserves Serve customers Contracted resources Skills to succeed across…
  6. Strategy and Q1 Results 2008 – BG Group – slide 6
    Strategy Business model E&P LNG Power Transmission Distribution E&P Resources Enabling Markets Skills and opportunities across the gas chain 6
  7. Strategy and Q1 Results 2008 – BG Group – slide 7
    Portfolio for growth Key country portfolio Norway UK Kazakhstan USA Tunisia India Trinidad & Tobago Egypt Oman Nigeria Brazil Core countries Potential core countries Focusing on developing material countries 7
  8. Strategy and Q1 Results 2008 – BG Group – slide 8
    Strategy Countries of current operation Norway Canada UK Kazakhstan Italy Israel / PA USA Oman India Tunisia China Algeria Thailand Libya Philippines Trinidad & Tobago Malaysia Egypt Nigeria Brazil Singapore Australia…
  9. Strategy and Q1 Results 2008 – BG Group – slide 9
    BG Group Business segments
  10. Strategy and Q1 Results 2008 – BG Group – slide 10
    Business segments E&P volumes CAGR 14% 1997-2007 000 boed 700 601 604 600 504 500 457 428 400 373 280 298 300 240 238 200 165 100 0 1997 1999 2001 2003 2005 2007 A decade of outstanding growth 10
  11. Strategy and Q1 Results 2008 – BG Group – slide 11
    Business segments E&P benchmarking Annual unit opex cost trend (/boe) 12 10 8 6 4 2 0 2002 2003 2004 2005 2006 2007 BG Top quartile Combined Companies Bottom quartile Source: Evaluate Energy 2007, BG Group Peer Group…
  12. Strategy and Q1 Results 2008 – BG Group – slide 12
    Business segments E&P benchmarking 3 year F&D cost trend (/boe) 25 20 15 10 5 0 2001-03 2002-04 2003-05 2004-06 2005-07 BG Top quartile Combined Companies Bottom quartile Source: Evaluate Energy 2007, BG Group Peer…
  13. Strategy and Q1 Results 2008 – BG Group – slide 13
    Business segments E&P asset base BG net production (000s boepd) of assets on stream at end 2006 only 700 600 500 400 Assets in production in 2006 only 300 200 100 0 2006A 2009 2012 2015 At 2008 reference conditions (see…
  14. Strategy and Q1 Results 2008 – BG Group – slide 14
    Business segments E&P: Production BG net production (000s boepd) 2005-12 1000 CAGR 6-8% 2009 800 680-710,000 boepd 600 Medium term 2007-09 Long term 2010-12 400 Key projects: Key opportunities: Buzzard Karachaganak Jasmine…
  15. Strategy and Q1 Results 2008 – BG Group – slide 15
    Overall profile inline but splits will change Business segments Kazakhstan: Karachaganak Phase III & beyond BG BGnet netproduction production(000s 000s boepd) boepd Fourth stabilisation train 250 Tie in during 2008 shutdown 200…
  16. Strategy and Q1 Results 2008 – BG Group – slide 16
    Business segments India BGnet BG netproduction production(000s 000s boepd boepd) Panna/Mukta Potential Panna (BG 30%) 60 Gross HIIP 1.7 bn boe Mukta Existing 50 Added 2 WHPs and 15 wells Mukta Plan Started 2 WHPs, 9 wells, 21…
  17. Strategy and Q1 Results 2008 – BG Group – slide 17
    Business segments Portfolio for growth Brazil: 2008 drilling and key prospects BM-S- BM-S- 52 52 BG BG 40% 40% Corcovado Corcovado (1), (1), (2) (2) BM-S- BM-S- 13 13 BG BG 60% 60% BM-S- BM-S- 10 10 BG BM-S- BM-S-…
  18. Strategy and Q1 Results 2008 – BG Group – slide 18
    Business segments Australia: Queensland Gas Co (QGC) alliance Proposed BG/QGC alliance Australia LNG plant QGC assets in 20% of assets / 9.9% shares Walloon Fairway Consideration 299m Surat Basin Brisbane Option for further 10%…
  19. Strategy and Q1 Results 2008 – BG Group – slide 19
    Business segments E&P: 2008 E&A preview Summary of wells Alaska Canada UK Norway 4-6 New plays 1 well 3 wells 4 wells 3 wells 1 well 1 well 1 well Play extenders 17-19 Appraisal/Near term production 20-23 Tunisia 1 well 1 well…
  20. Strategy and Q1 Results 2008 – BG Group – slide 20
    Business segments Global LNG & US: Markets UK Belgium USA S. Korea Spain Italy Japan India Taiwan Mexico Egypt Trinidad Nigeria EG Australia Chile In 2007, BG supplied 3.5 mtpa, or approximately 50%* of all Atlantic Basin…
  21. Strategy and Q1 Results 2008 – BG Group – slide 21
    Business segments Global LNG & US: Supply mtpa Egypt & T&T 25 OKLNG & Brass 20 Australia NLNG Train 7 15 10 Other term supply Nigerian LNG T4/5 Equatorial Guinea 5 Egyptian LNG T2 Atlantic LNG T4 Atlantic LNG T2/3 0…
  22. Strategy and Q1 Results 2008 – BG Group – slide 22
    Business segments Global LNG & US: Costs World-wide liquefaction capex (/tpa) US regasification capex (/mscfd) 1000 1000 Greenfield projects Greenfield projects Expansion projects Expansion projects 800 800 BG liquefaction…
  23. Strategy and Q1 Results 2008 – BG Group – slide 23
    Business segments Global LNG & US Strong competitive position Large, long-life supply base Low cost structure Flexible portfolio, serving global markets Integrated US portfolio Market-led strategy Capturing value globally…
  24. Strategy and Q1 Results 2008 – BG Group – slide 24
    Business segments Transmission and distribution High growth markets, India and Brazil Regulatory regimes focused on development Sustained volume growth Long-term growth businesses Exposure to high growth economies 24
  25. Strategy and Q1 Results 2008 – BG Group – slide 25
    Business segments Power Power drives growth in gas demand Existing portfolio of modern, contracted gas plants Recently-added US power plants in attractive north east region Integrated into BGs US gas business Strong returns 25
  26. Strategy and Q1 Results 2008 – BG Group – slide 26
    Business segments Total operating profit m CAGR 35% 1997-2007 3500 3,248 3,103 3000 2500 2,389 2000 1,520 1500 1,287 1000 833 888 688 500 330 160 229 0 1997 2000 2003 2006 2007 E&P T&D, LNG, Power & Other Continuing…
  27. Strategy and Q1 Results 2008 – BG Group – slide 27
    The Integrated Gas Major Summary High-performing E&P business LNG flexibility delivering value T&D focused on high-growth markets Power selective development 27
  28. Strategy and Q1 Results 2008 – BG Group – slide 28
    BG Group Portfolio for growth
  29. Strategy and Q1 Results 2008 – BG Group – slide 29
    Business segments E&P: Prospect inventory Total risked exploration resources: 3,356 mmboe Onshore Norway Deepwater Other Brazil Egypt China Nigeria UK Offshore Conventional Well balanced inventory, around 75% of…
  30. Strategy and Q1 Results 2008 – BG Group – slide 30
    Business segments E&P: Reserves and resources CAGR 19% Reserves/ mmboe Production* 10,046 10000 8,017 8000 7,071 3,356 46 Years 2,713 6000 2,440 3,122 30 Years 1,772 4000 1,211 1,236 1,383 1,529 16 Years 2000 2,184 2,149…
  31. Strategy and Q1 Results 2008 – BG Group – slide 31
    Portfolio for growth E&P: Reserves and Sustainable resourcesgrowth production 10,046 mmboe 2000 2000 1.6 million boepd 3,356 CAGR 8% 1500 1500 3,356 3,356 1.2 million boepd 1000 1000 CAGR 6% 3,122 3,122 3,122 CAGR 8% out to…
  32. Strategy and Q1 Results 2008 – BG Group – slide 32
    Portfolio for growth Capital investment 2007-2009 ( billion) 0.7 (0.6) 0.9 8.8 0.3 7.5 Prior year Exploration Acquisitions Inflation FX Current Maintaining capital discipline 32
  33. Strategy and Q1 Results 2008 – BG Group – slide 33
    Portfolio for growth Capital structure and dividend Capital investment for 2008 2009 6.3 bn Substantial growth in investment opportunities Dividend re-based: +30% Long-term growth, good returns 33
  34. Strategy and Q1 Results 2008 – BG Group – slide 34
    Portfolio for growth Framework for growth EPS Based on firm projects In BG plans** Energy growth* Zero growth Key growth projects Karachaganak Buzzard US LNG Trinidad E&P/ LNG Hasdrubal 2006 2009 Schematic representation…
  35. Strategy and Q1 Results 2008 – BG Group – slide 35
    BG Group Q1 2008 results
  36. Strategy and Q1 Results 2008 – BG Group – slide 36
    Financial performance Q1 2008 Underlying total operating profit up 24% Strong volume growth in E&P and LNG Excellent LNG performance Very strong results 36
  37. Strategy and Q1 Results 2008 – BG Group – slide 37
    Financial performance Q1 2008 Q1 2008 Q1 2007 million million % yoy Total operating profit 1 402 823 +70% Earnings 789 448 +76% EPS 23.6p 13.1p +80% Operating cash flow 1 566 1 086 +44% Results excluding disposals, certain…
  38. Strategy and Q1 Results 2008 – BG Group – slide 38
    Financial performance Q1 2008 operating profit Q1 2008 Q1 2007 million million % yoy E&P 942 626 +50% LNG 395 121 +226% T&D 31 50 -38% Power 38 38 - Other activities (4) (12) -67% Group total 1 402 823 +70% Results excluding…
  39. Strategy and Q1 Results 2008 – BG Group – slide 39
    Financial performance Q1 operating profit E&P Q1 2008 Q1 2007 Volume (mmboe) 60.7 58.2 Exploration charge (m) 97 56 Operating profit (m) 942 626 Results excluding disposals, certain re-measurements and impairments Total…
  40. Strategy and Q1 Results 2008 – BG Group – slide 40
    Financial performance Q1 operating profit - LNG Q1 2008 Q1 2007 million million Shipping and marketing 383 115 Liquefaction 26 25 Business devt and other (14) (19) Operating profit 395 121 Results excluding disposals, certain…
  41. Strategy and Q1 Results 2008 – BG Group – slide 41
    Financial performance Q1 operating profit T&D Q1 2008 Q1 2007 million million Comgas 20 40 Other 11 10 Operating profit 31 50 Results excluding disposals, certain re-measurements and impairments Total operating profit includes…
  42. Strategy and Q1 Results 2008 – BG Group – slide 42
    Financial performance Q1 operating profit Power Q1 2008 Q1 2007 million million Subsidiaries 16 18 JVs and associates 22 20 Operating profit 38 38 Results excluding disposals, certain re-measurements and impairments Growth…
  43. Strategy and Q1 Results 2008 – BG Group – slide 43
    Financial performance Q1 2008 Operating cashflow 1 566 m (up 44%) Capex 647 m Net funds 506 m Strong financial position 43
  44. Strategy and Q1 Results 2008 – BG Group – slide 44
    Financial performance Conclusions Very strong first quarter results Progress made on growth programme Broad portfolio of long-term options Robust strategy delivering value to shareholders Creating shareholder value 44
  45. Strategy and Q1 Results 2008 – BG Group – slide 45
    BG Group Appendix
  46. Strategy and Q1 Results 2008 – BG Group – slide 46
    Portfolio for growth Brazil: Tupi notional development sequence EWT to assess long term deliverability & producibility Extended Production Full Initial e.g. 1 or 2 wells initially, field then wellusetest pilot development…
  47. Strategy and Q1 Results 2008 – BG Group – slide 47
    Appendix Key assumptions REFERENCE CONDITIONS Brent Oil price US 55/bbl US Henry Hub 7.25/mmBtu US/UK exchange rates of 2:1 Prepared under International Financial Reporting Standards All production includes fuel gas PRINCIPAL…

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