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Strategy and First Half Results Presentation – BG Group

BG Group · Jul 24, 2006 · 40 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 First Half Results Presentation – BG Group – slide 1
    BG Group Strategy and First Half Results 2006
  2. Strategy and First Half Results Presentation – BG Group – slide 2
    BG Group Key messages Strong operating performance Underlying operating profit up 14% in Q2 Distinctive long-life asset base Strong potential out to 2012 Continuing to develop portfolio and future growth prospects Creating…
  3. Strategy and First Half Results Presentation – BG Group – slide 3
    BG Group Overview Strategy Business segments Framework for growth Q2 2006 results 4
  4. Strategy and First Half Results Presentation – BG Group – slide 4
    Strategy Energy consumption Energy consumption CAGR 2000-2025 2.3% 2.1% 1.9% 1.8% 1.2% Nuclear Oil Renewables Coal Natural Gas Source: EIA July 2005 Gas is the fuel of choice 5
  5. Strategy and First Half Results Presentation – BG Group – slide 5
    Strategy Integrated Gas Major Integrated Gas Major Connect gas to Secure low cost high value markets resources Build & access markets Equity reserves Serve customers Contracted resources Skills to succeed across the gas…
  6. Strategy and First Half Results Presentation – 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 7
  7. Strategy and First Half Results Presentation – BG Group – slide 7
    Strategy Gas market focus UK / Europe Middle North Focus East / America Caspian Focus Atlantic India supply focus Long term growth Bolivia / Long term Brazil growth Developed Market Developing Market Supplies…
  8. Strategy and First Half Results Presentation – BG Group – slide 8
    Strategy Countries of current operation Norway Canada UK Kazakhstan Italy Israel / PA USA Oman India Tunisia China Thailand Trinidad & Libya Philippines Tobago Mauritania Malaysia Egypt Nigeria Bolivia Brazil Singapore…
  9. Strategy and First Half Results Presentation – BG Group – slide 9
    Business segments
  10. Strategy and First Half Results Presentation – BG Group – slide 10
    2005 results E&P benchmarking 3 year F&D costs (/boe) 3 year reserve replacement (%) BG 2003-2005 Peer 2003-2005 0 2 4 6 8 10 12 14 -60% 40% 140% 240% Source: Evaluate Energy 2006, BG Group Peer Group includes Super Majors,…
  11. Strategy and First Half Results Presentation – BG Group – slide 11
    2005 results E&P unit operating costs Annual unit operating cost (/boe) BG 2005 opex 4.04/boe BG 2005 Peer 2005 Industry costs rising BG is an industry leader 0 2 4 6 8 10 Source: Evaluate Energy 2006, BG Group Peer Group…
  12. Strategy and First Half Results Presentation – BG Group – slide 12
    Long term growth E&P: Reserves and resources Cumulative Reserves/ reserves/resources Production* Risked Exploration 7,071 mmboe 38 Years (2,440 mmboe) Un-booked Resources (1,211 mmboe) 4,631 mmboe 25 Years Probable Reserves…
  13. Strategy and First Half Results Presentation – BG Group – slide 13
    Long term growth Global LNG: Summary Leading position in Atlantic Basin Multiple, low cost import terminals Increasing portfolio of contracted supply Supply growth CAGR of 28% to 2009 Value being realised from flexibility Embedded…
  14. Strategy and First Half Results Presentation – BG Group – slide 14
    BG Group BG Groups LNG portfolio today UK Providence Brindisi Shipping ELNG 1 ELNG 2 Damietta Elba Island ELNG 3 Mauritania Lake Charles OKLNG ALNG 1 ALNG 2 NLNG ALNG 3 ALNG 4 Brass ALNG X Eq. Guinea Chile Brazil LNG…
  15. Strategy and First Half Results Presentation – BG Group – slide 15
    Business segments Transmission and distribution Comgas Volume mmcmd Volume CAGR 10% 2005-2010 High growth markets, India 25 and Brazil 20 15 Regulatory regimes focused on development 10 5 Strong volume and margin 0 growth…
  16. Strategy and First Half Results Presentation – BG Group – slide 16
    Business segments Power Power drives growth in gas demand Portfolio of profitable modern gas plants Long-term take or pay revenue Gas cost pass through Substantial business: operating profit in 2005 113 m BG has the skills to…
  17. Strategy and First Half Results Presentation – BG Group – slide 17
    Strategy Total operating profit (m) m 2500 CAGR 40% 1997-2005 2,380 2000 1,513 1500 1,279 1000 833 888 688 500 330 160 229 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 E&P T&D, LNG, Power & Other Continuing operations…
  18. Strategy and First Half Results Presentation – BG Group – slide 18
    Long-term growth
  19. Strategy and First Half Results Presentation – BG Group – slide 19
    Progress to 2006 Project delivery Delivered Delivered 2006 2004 2005 Elba Island ELNG 1 Buzzard Two LNG ships Simian Three LNG ships Margarita EPF Sienna Miskar expansion Canada Interconnector Lake Charles Exp. II Central block…
  20. Strategy and First Half Results Presentation – BG Group – slide 20
    Progress to 2006 2006 volumes Previous New E&P (000 boed) 580 600 up 3.4% LNG (mtpa) 6.9 7.1 up 2.9% T&D (bcma) 11.7 11.7 restated* Power capacity (GW) 2.8 2.8 unchanged At 2006 reference conditions (see appendix) * Previous…
  21. Strategy and First Half Results Presentation – BG Group – slide 21
    Long term growth E&P asset base BG net production (000s boepd) of assets on stream by end 2003 only 500 400 300 Assets in production in 2003 only 200 100 0 2003A 2006 2009 2012 At 2006 reference conditions (see appendix)…
  22. Strategy and First Half Results Presentation – BG Group – slide 22
    Long term growth E&P: Production BG net production 000s boepd 1000 CAGR 6-10% 2005-12 800 CAGR 5-7% 2006-09 600 600 Medium term Long term 2007-09 2010-12 Key projects: Key opportunities: 400 Buzzard Karachaganak expansion…
  23. Strategy and First Half Results Presentation – BG Group – slide 23
    Long term growth Global LNG: Supply BG supply (mtpa) CAGR 20-25% 2005-12 30 Overall 2012 outcome of 24-30 mtpa Supply Options Brass CAGR 28% 2005-09 OKLNG 25 ELNG Train 3 New Trinidad 20 Further Nigeria Algeria Spot 15 Planned…
  24. Strategy and First Half Results Presentation – BG Group – slide 24
    Long term growth Global LNG: Outlook 2006-2009 Capital invested Return * Liquefaction 2006 - 0.9bn 2006 c 10% 2009 - 1.0bn Post 2006 c 13% Shipping Volumes EBITDA margin ** and 2006 - 12.9 mtpa 2006 c 9% Marketing 2009 - 16.7…
  25. Strategy and First Half Results Presentation – BG Group – slide 25
    Long term growth 2007-2012 Key projects & opportunities Key developments on stream 2007-09 Hasdrubal Lake Charles (fuel savings/NGLs) Karachaganak LNG long term firm supply Panna/Mukta/Tapti LNG ships Dolphin Comgas Dragon…
  26. Strategy and First Half Results Presentation – BG Group – slide 26
    The Integrated Gas Major Framework for growth Earnings Firm projects Firm projects beyond 2006 in BG plans Firm projects to 2006 Growth based on Existing assets firm projects in 2005 plan** Energy growth* Zero growth 2003…
  27. Strategy and First Half Results Presentation – BG Group – slide 27
    First Half 2006 results
  28. Strategy and First Half Results Presentation – BG Group – slide 28
    Financial performance 1H 2006 Total operating profit up 75%(i) E & P volumes up 26%(ii) LNG operating profits up 274% Good progress in T&D Growth programme on track (i) Total operating profit includes pre-tax operating results…
  29. Strategy and First Half Results Presentation – BG Group – slide 29
    Financial performance 1H 2006 1H 2006 1H 2005 % yoy million million Revenue 3 726 2 227 67% Total operating profit 1710 978 75% Earnings 888 544 63% EPS 25.3 15.4 64% Operating cash flow 1 826 1 102 66% Results excluding disposals and…
  30. Strategy and First Half Results Presentation – BG Group – slide 30
    Financial performance 1H 2006 total operating profit 1H 2006 1H 2005 % yoy million million E&P 1 373 794 73% LNG 172 46 274% T&D 122 102 20% Power 62 57 9% Other activities -19 -21 -10% Group total 1 710 978 75% Results…
  31. Strategy and First Half Results Presentation – BG Group – slide 31
    Financial performance LNG 1H operating profit 1H 2006 1H 2005 million million Shipping and marketing 155 20 Liquefaction 54 45 Business dev and other -37 -19 Operating profit 172 46 Results excluding disposals and re-measurements…
  32. Strategy and First Half Results Presentation – BG Group – slide 32
    Financial performance T&D 1H operating profit 1H 2006 1H 2005 million million Comgas 98 67 Other 24 21 122 102 +20% MetroGAS - 14 Operating profit 122 116 Results excluding disposals and re-measurements Total operating profit…
  33. Strategy and First Half Results Presentation – BG Group – slide 33
    Financial performance 1H 2006 Operating cashflow 1 826 m (up 66%) Capex 787 m Net funds 14 m Buyback to end of 1H 632 m Strong financial position 34
  34. Strategy and First Half Results Presentation – BG Group – slide 34
    Financial performance Conclusions Strong operating performance Growth programme on track Broad portfolio of long term options Robust strategy delivering value to shareholders 35
  35. Strategy and First Half Results Presentation – BG Group – slide 35
    Appendix
  36. Strategy and First Half Results Presentation – BG Group – slide 36
    Cautionary Note to US investors The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual…
  37. Strategy and First Half Results Presentation – BG Group – slide 37
    Appendix Key assumptions REFERENCE CONDITIONS Brent Oil price US40/bbl US Henry Hub 6/mmBtu US/UK exchange rates of 1.80:1 UKCS upstream tax 40% 2003-05; 50% 2006 forward Prepared under International Financial Reporting Standards…
  38. Strategy and First Half Results Presentation – BG Group – slide 38
    Long term growth North Sea: Production BG net production 000s boepd Production up 11% 2007-09: 200 J Block Blake Everest ECA 150 Elgin Franklin New discoveries 2005-06: 100 Courageous Jackdaw Calloway Banks 50 Production from new…
  39. Strategy and First Half Results Presentation – BG Group – slide 39
    Long term growth Karachaganak: Full potential BG net production 000s boepd 250 Developing full liquids potential 200 Significant production growth 150 Raising & extending plateau 100 Significant upside 50 Maximising recovery 0 2005A…
  40. Strategy and First Half Results Presentation – BG Group – slide 40
    Appendix Glossary Increase or (decrease) EPF Early production facility United States Dollar EPOD Extended plan of development UK pounds sterling F&D Finding and development costs m Million UK pounds sterling FX Foreign exchange 000…

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