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Q3 2005 Results and Strategy Presentation – BG Group

BG Group · Nov 8, 2005 · 38 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. Q3 2005 Results and Strategy Presentation – BG Group – slide 1
    BG Group Strategy and Q3 Results 2005
  2. Q3 2005 Results and Strategy Presentation – BG Group – slide 2
    BG Group Key messages Good operating performance Strong financial position and outlook Up to 1 billion repurchase Additional 500 million capex Good progress on growth programme Creating shareholder value 3
  3. Q3 2005 Results and Strategy Presentation – BG Group – slide 3
    BG Group Overview Strategy Business segments Framework for growth Q3 2005 results 4
  4. Q3 2005 Results and Strategy 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 2005 Gas is the fuel of choice 5
  5. Q3 2005 Results and Strategy Presentation – BG Group – slide 5
    Strategy Integrated Gas Major Integrated Gas Major Connect gas to Secure low cost high value markets resources Build and access markets Equity reserves Serve customers Contracted resources Skills to succeed across the gas…
  6. Q3 2005 Results and Strategy 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. Q3 2005 Results and Strategy Presentation – BG Group – slide 7
    Strategy Gas market focus UK / Europe Middle North Focus East / America Caspian Focus Atlantic supply India focus Long term growth Bolivia/ Long term Brazil growth Developed Market Developing Market Supplies Connecting…
  8. Q3 2005 Results and Strategy Presentation – BG Group – slide 8
    Strategy Countries of current operation Norway Canada UK Kazakhstan Italy Spain USA Israel / PA Tunisia Thailand Mauritania Libya India Trinidad & Egypt Philippines Tobago Malaysia Bolivia Brazil Singapore Uruguay…
  9. Q3 2005 Results and Strategy Presentation – BG Group – slide 9
    Business segments
  10. Q3 2005 Results and Strategy Presentation – BG Group – slide 10
    2004 results E&P unit operating costs Annual unit operating cost (/boe) BG 2004 opex 3.66/boe BG 2004 Industry costs rising BG 2003 Peer 2004 BG is an industry leader 0 5 10 Peer Group includes Super Majors, Source: Evaluate…
  11. Q3 2005 Results and Strategy Presentation – BG Group – slide 11
    2004 results E&P benchmarking 3 year F&D costs (/boe) 3 year reserve replacement (%) BG 2002-2004 BG 2001-2003 Peer 2002-2004 0 2 4 6 8 10 0% 100% 200% 300% 400% Peer Group includes Super Majors, Source: Evaluate Energy 2004,…
  12. Q3 2005 Results and Strategy Presentation – BG Group – slide 12
    Business segments E&P reserves and resources Cumulative Reserves/ reserves/resources Production* Risked Exploration 6,596 mmboe 40 Years (2,109 mmboe) Un-booked Resources 4,487 mmboe 27 Years (869 mmboe) Probable Reserves…
  13. Q3 2005 Results and Strategy Presentation – BG Group – slide 13
    Business segments LNG Atlantic Basin Strategy Accessing high value markets Rapid growth in LNG production Shipping and marketing Contracted LNG supply in 2006/7 Rapidly growing segment 14
  14. Q3 2005 Results and Strategy Presentation – BG Group – slide 14
    BGs LNG portfolio LNG activities UK Providence Brindisi Shipping ELNG 1 ELNG 2 Damietta Elba Island ELNG 3 Mauritania Lake Charles OKLNG ALNG 1 ALNG 2 NLNG Middle ALNG 3 ALNG 4 East ALNG 5 India Bolivia LNG Eq. Guinea…
  15. Q3 2005 Results and Strategy Presentation – BG Group – slide 15
    Business segments Transmission and distribution Comgas Gross bcmpa 8% CAGR 2004-2009 High growth markets, India 6 and Brazil 4 Regulatory regimes focused on development 2 Strong volume and margin growth 0 2004A 2005 2006 2007…
  16. Q3 2005 Results and Strategy Presentation – BG Group – slide 16
    Business segments Power Power drives growth in gas demand Strong portfolio of modern gas plants Long-term take or pay revenue Gas cost pass through Substantial business: operating profit in 2004 121m BG has the skills to compete…
  17. Q3 2005 Results and Strategy Presentation – BG Group – slide 17
    Business segments Total operating profit m 1600 CAGR 38% 1997-2004 1522 1400 1251 1200 1000 888 833 800 688 600 400 330 229 200 160 0 1997 1998 1999 2000 2001 2002 2003 2004 E&P T&D, LNG & Power Continuing operations…
  18. Q3 2005 Results and Strategy Presentation – BG Group – slide 18
    Long-term growth
  19. Q3 2005 Results and Strategy Presentation – BG Group – slide 19
    Progress to 2006 Project delivery Delivered 2005 2006 2004 Elba Island Atlantic Buzzard Two LNG ships Cromarty Three LNG ships Margarita EPF Interconnector Miskar expansion Lake Charles Exp. I Lake Charles Exp. II West Franklin…
  20. Q3 2005 Results and Strategy Presentation – BG Group – slide 20
    Long term growth 2006 volumes Previous New E&P (000 boed) 530 580 up 9.4% LNG (mtpa) 6.6 6.9 up 4.5% T&D (bcma)* 14.0 14.0 unchanged Power capacity (GW)** 2.8 2.8 unchanged At 2005 reference conditions (see appendix) * Includes…
  21. Q3 2005 Results and Strategy Presentation – BG Group – slide 21
    Long-term growth Business segment earnings split 100% 0% 2003 2009 E&P LNG, T&D, Power, Other At reference conditions (see BG website) Mid/downstream growth outstrips E&P growth 22
  22. Q3 2005 Results and Strategy Presentation – BG Group – slide 22
    Long term growth Projects in the plan Existing assets Existing assets and and enhancements enhancements Existing assets + Interconnector reverse flow Nigeria supply Comgas organic growth Karachaganak gas sales Panna/Mukta drilling…
  23. Q3 2005 Results and Strategy Presentation – BG Group – slide 23
    Long term growth Framework for growth Earnings Firm projects Risked E&A and BD in BG plans Additional projects Growth based Firm projects beyond 2006 on firm projects Firm projects to 2006 in 2004 plan Existing assets Energy…
  24. Q3 2005 Results and Strategy Presentation – BG Group – slide 24
    Long term growth Additional projects North America Brindisi regas Armada Hub expansion expansions North America CATS Karachaganak extra volumes new supplies ullage filling Microgen North America Gaza Gas Marketing Dragon…
  25. Q3 2005 Results and Strategy Presentation – BG Group – slide 25
    Long term growth Additional projects : LNG Import capacity (mtpa) 35-40 Longer term supply potential Existing Assets Embedded New Trinidad expansion ELNG T3 options Medium term New Greenfield supply potential OKLNG 21 ALNG…
  26. Q3 2005 Results and Strategy Presentation – BG Group – slide 26
    Long term growth Exploration: Wells planned 2005 North Sea Canada 6 exploration 19 E&A wells 1 appraisal Italy Spain 2 exploration 1 exploration Israel Mauritania 1 exploration 5 exploration 2 appraisal Thailand Trinidad 2…
  27. Q3 2005 Results and Strategy Presentation – BG Group – slide 27
    Q3 2005 results
  28. Q3 2005 Results and Strategy Presentation – BG Group – slide 28
    Financial performance Q3 2005 Operating profit up 39% E & P volumes up 4% Good progress in LNG and T&D Growth programme Progress across the board 29
  29. Q3 2005 Results and Strategy Presentation – BG Group – slide 29
    Financial performance Q3 2005 Q3 2005 Q3 2004 % million million change Revenue & other op. income 1 339 1 084 + 24% Total operating profit 548 395 + 39% Earnings 308 214 + 44% EPS 8.7p 6.1p + 43% Operating cash flow 692 448 + 54%…
  30. Q3 2005 Results and Strategy Presentation – BG Group – slide 30
    Financial performance Q3 2005 Q3 2005 Q3 2004 % yoy million million E&P 419 291 + 44 LNG 51 37 + 38 T&D 64 51 + 25 Power 21 21 - Other activities (7) (5) + 40 Group total 548 395 + 39 Results excluding disposals and re-measurements…
  31. Q3 2005 Results and Strategy Presentation – BG Group – slide 31
    Financial performance LNG Q3 operating profit Q3 2005 Q3 2004 million million Shipping and marketing 28 24 Liquefaction 30 19 Business dev and other (7) (6) Operating profit 51 37 Results excluding disposals and re-measurements…
  32. Q3 2005 Results and Strategy Presentation – BG Group – slide 32
    Financial performance T&D Q3 operating profit Q3 2005 Q3 2004 million million Comgas 43 31 MetroGAS 11 11 Other 10 9 Operating profit 64 51 Results excluding disposals and re-measurements Total operating profit includes pre-tax…
  33. Q3 2005 Results and Strategy Presentation – BG Group – slide 33
    Financial performance Q3 2005 Operating cashflow 692 m (up 54%) Capex 378 m Net debt 104 m Buy back announced 1 billion Strong financial position 34
  34. Q3 2005 Results and Strategy 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. Q3 2005 Results and Strategy Presentation – BG Group – slide 35
    Appendix
  36. Q3 2005 Results and Strategy Presentation – BG Group – slide 36
    Appendix Key assumptions REFERENCE CONDITIONS Brent Oil price US23/bbl UK uncontracted 21pence/therm US Henry Hub 4.30/mmBtu US/UK exchange rates of 1.80:1 US/UK inflation rates of 2.5% per annum Prepared under International…
  37. Q3 2005 Results and Strategy Presentation – BG Group – slide 37
    Long term growth LNG : Atlantic Basin volumes & import capacity mtpa 25 Market progress 20 Elba - Cypress pipeline Dragon LNG 15 Brindisi 10 Supply progress 5 Damietta offtake (BG & Petronas) Supplies under negotiation 0 2004A…
  38. Q3 2005 Results and Strategy Presentation – BG Group – slide 38
    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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