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Strategy and 2005 1H Results Presentation – BG Group

BG Group · Jul 27, 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. Strategy and 2005 1H Results Presentation – BG Group – slide 1
    BG Group Strategy and 1H Results 2005
  2. Strategy and 2005 1H Results Presentation – BG Group – slide 2
    BG Group Key messages Strong underlying growth in first half 2005 Growth programme on track Broad portfolio of long term options Robust strategy delivering value to shareholders On track 3
  3. Strategy and 2005 1H Results Presentation – BG Group – slide 3
    BG Group Overview Strategy Business segments Framework for growth First half 2005 results 4
  4. Strategy and 2005 1H Results Presentation – BG Group – slide 4
    Strategy Energy consumption Energy consumption CAGR 2000-2025 2.2% 1.8% 1.7% 1.6% 0.7% Natural Gas Oil Renewables Coal Nuclear Source: EIA 2004 Gas is the fuel of choice 5
  5. Strategy and 2005 1H Results 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. Strategy and 2005 1H 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 2005 1H Results 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. Strategy and 2005 1H Results Presentation – BG Group – slide 8
    Strategy Countries of current operation Norway Canada UK Kazakhstan Italy Spain USA Israel / PA Tunisia Thailand Mauritania India Trinidad & Egypt Philippines Tobago Malaysia Bolivia Brazil Singapore Uruguay Argentina…
  9. Strategy and 2005 1H Results Presentation – BG Group – slide 9
    Business segments
  10. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results Presentation – BG Group – slide 13
    Business segments LNG Atlantic Basin Strategy Accessing high value markets Rapid growth in LNG production Shipping and marketing Key area of investment Rapidly growing segment 14
  14. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results Presentation – BG Group – slide 18
    Long-term growth
  19. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results Presentation – BG Group – slide 27
    First half 2005 results
  28. Strategy and 2005 1H Results Presentation – BG Group – slide 28
    Financial performance First half 2005 Operating profit up 43% Strong underlying, organic growth E & P volumes up 8% Good progress in LNG and T&D Operating income up 17% at constant prices & / Project delivery on track Progress…
  29. Strategy and 2005 1H Results Presentation – BG Group – slide 29
    Financial performance First half 2005 1H 2005 1H 2004 % million million change Turnover & other op. income 2 227 1 818 + 22% Total operating profit 974 683 + 43% Earnings 545 379 + 44% EPS 15.4p 10.7p + 44% Operating cash flow 1 094…
  30. Strategy and 2005 1H Results Presentation – BG Group – slide 30
    Financial performance First half 2005 1H 2005 1H 2004 % yoy million million E&P 794 538 + 48 LNG 42 34 + 24 T&D 102 66 + 55 Power 57 61 -7 Other activities (21) (16) + 31 Group total 974 683 + 43 Results excluding disposals and…
  31. Strategy and 2005 1H Results Presentation – BG Group – slide 31
    Financial performance LNG 1H operating profit 1H 2005 1H 2004 million million Shipping and marketing 16 11 Liquefaction 45 30 Business dev and other (19) (7) Operating profit 42 34 Results excluding disposals and re-measurements…
  32. Strategy and 2005 1H Results Presentation – BG Group – slide 32
    Financial performance T&D 1H operating profit 1H 2005 1H 2004 million million Comgas 67 39 MetroGAS 14 9 Other 21 18 Operating profit 102 66 Results excluding disposals and re-measurements Total operating profit includes pre-tax…
  33. Strategy and 2005 1H Results Presentation – BG Group – slide 33
    Financial performance First half 2005 Operating cashflow 1 094 m (up 57%) Capex 701 m Net debt 50 m Strong financial position 34
  34. Strategy and 2005 1H Results Presentation – BG Group – slide 34
    Financial performance Conclusions Strong underlying growth in second quarter 2005 Growth programme on track Broad portfolio of long term options Robust strategy delivering value to shareholders On track 35
  35. Strategy and 2005 1H Results Presentation – BG Group – slide 35
    Appendix
  36. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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. Strategy and 2005 1H Results 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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