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Strategy and 1H Results Presentation – BG Group

BG Group · Jul 27, 2007 · 41 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 1H Results Presentation – BG Group – slide 1
    BG Group Strategy and 1H Results 2007
  2. Strategy and 1H Results Presentation – BG Group – slide 2
    BG Group Key messages Good operating performance Good progress on growth programme Broad portfolio of long term options Robust strategy delivering value to shareholders Creating shareholder value 3
  3. Strategy and 1H Results Presentation – BG Group – slide 3
    BG Group Overview Strategy Business segments Portfolio for growth 1H 2007 results 4
  4. Strategy and 1H Results Presentation – BG Group – slide 4
    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…
  5. Strategy and 1H Results Presentation – BG Group – slide 5
    Strategy Business model E&P LNG Power Transmission Distribution E&P Resources Enabling Markets Skills and opportunities across the gas chain 6
  6. Strategy and 1H Results Presentation – BG Group – slide 6
    Strategy Gas market focus UK / Europe Middle North Focus East / America Caspian Focus Atlantic India supply focus Long term growth Bolivia/B razil Long term growth Developed Market Developing Market Supplies…
  7. Strategy and 1H Results Presentation – BG Group – slide 7
    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 Bolivia Brazil Singapore Chile…
  8. Strategy and 1H Results Presentation – BG Group – slide 8
    Business segments
  9. Strategy and 1H Results Presentation – BG Group – slide 9
    Business segments E&P volumes CAGR 15% 1997-2006 000boepd 589 600 504 500 457 428 400 373 280 298 300 238 240 200 165 100 0 1997 2000 2003 2006 A decade of outstanding growth Outstanding organic growth 10
  10. Strategy and 1H Results Presentation – BG Group – slide 10
    Business Segments E&P benchmarking 3 year F&D cost trend (/boe) Annual unit opex cost trend (/boe) 25 12 10 20 8 15 6 10 4 5 2 0 0 2001-03 2002-04 2003-05 2004-06 2001 2002 2003 2004 2005 2006 BG Combined Companies BG…
  11. Strategy and 1H Results Presentation – BG Group – slide 11
    Business segments E&P: Reserves and resources CAGR 10% mmboe 2006 Reserves/ 8,017 Production* 8000 7,071 6,595 2,713 37 years 6000 2,440 2,109 1,772 24 years 4000 869 1,211 1,470 1,236 1,383 16 years 2000 2,147 2,184 2,149 10…
  12. Strategy and 1H Results Presentation – BG Group – slide 12
    Business segments E&P: 2007 E&A preview UK Canada 2-3 wells 4 wells Norway 2 wells 1 well Tunisia Tunisia 1 well Trinidad Thailand Algeria 1 well 7 wells 0-1 well 1 well Bolivia Brazil 1 well 1 well 1 well New…
  13. Strategy and 1H Results Presentation – BG Group – slide 13
    Business segments Global LNG: A unique competitive position Flexible LNG Multiple markets Long term supply with destination flexibility Delivery to 12 countries in 2006 Flexible US backstop People and skills Proven delivery…
  14. Strategy and 1H Results Presentation – BG Group – slide 14
    Business segments Global LNG: Growing a global business UK Future USA Italy Asia purchases and other opportunities Egypt Trinidad PNG Nigeria EG Term sales: 1 to 2 mtpa Chile Current and future equity positions…
  15. Strategy and 1H Results Presentation – BG Group – slide 15
    Business segments Global LNG: Integrated US gas strategy Supply Assets BG Portfolio Assets Customer Assets LNG LNG Natural Gas Transportation NGLs Input Output Options Options Production Storage NGLs Power Power…
  16. Strategy and 1H Results Presentation – BG Group – slide 16
    Long term growth Global LNG: Supply BG supply (mtpa) CAGR 16-20% 2005-12 20 Supply subject to SPA* NLNG T7 CAGR 21-24% 2005-09 Brass LNG OKLNG equity lifting 10 Other opportunities Supply subject to SPA Spot (potential…
  17. Strategy and 1H Results Presentation – BG Group – slide 17
    Business segments Global LNG: Outlook Capital invested Return * Liquefaction 2009 0.9bn 2007 09 ca 13% Shipping Volumes EBITDA margin ** and 2007 12.3 mtpa 2007 16% Marketing 2009 13.5 mtpa Rising to 18% in 2009 * Pre-tax…
  18. Strategy and 1H Results Presentation – BG Group – slide 18
    Business segments Transmission and distribution High growth markets, India and Brazil Regulatory regimes focused on development Strong volume growth Long-term growth businesses Exposure to high growth economies 19
  19. Strategy and 1H Results Presentation – BG Group – slide 19
    Business segments Power Power drives growth in gas demand BG has the skills Existing portfolio of modern, contracted gas plants New US power plants In attractive US regions Integrated into BGs US gas business Strong returns 20
  20. Strategy and 1H Results Presentation – BG Group – slide 20
    Strategy Total operating profit m 3500 CAGR 39% 1997-2006 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 E&P T&D, LNG, Power & Other Continuing operations excluding…
  21. Strategy and 1H Results Presentation – BG Group – slide 21
    Long-term growth
  22. Strategy and 1H Results Presentation – BG Group – slide 22
    Long term growth 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 2007 reference conditions (see…
  23. Strategy and 1H Results Presentation – BG Group – slide 23
    Long term growth E&P: Production BG net production 000s boepd CAGR 6-10% 2005-12 1000 800 CAGR 5-7% 2006-09 612 600 Medium term 2007-09 Long term 2010-12 Key projects: Key opportunities: 400 Buzzard Karachaganak Gaza Marine…
  24. Strategy and 1H Results Presentation – BG Group – slide 24
    Long term growth Capital resources Capex for 2007 2.0 bn, including acquisitions 2.6 bn Substantial growth in opportunities Financial flexibility valuable Share buy-back 750m Balancing growth and returns 25
  25. Strategy and 1H Results Presentation – BG Group – slide 25
    Long term 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 only…
  26. Strategy and 1H Results Presentation – BG Group – slide 26
    Long term growth Key opportunities beyond 2012 Alaska exploration UK exploration Norway exploration Canada exploration Egypt exploration Karachaganak Libya exploration full potential Algeria ELNG T3 Elba Island expansion…
  27. Strategy and 1H Results Presentation – BG Group – slide 27
    First Half 2007 results
  28. Strategy and 1H Results Presentation – BG Group – slide 28
    Financial performance First Half 2007 Underlying total operating profit up 8% E&P volumes in line Excellent LNG performance Strong cash conversion Good progress on growth programme Good performance 29
  29. Strategy and 1H Results Presentation – BG Group – slide 29
    Financial performance First Half 2007 1H 2007 1H 2006 % change million million Revenue 4 142 3 726 +11% Total operating profit 1 570 1 710 -8% Earnings 857 888 -3% EPS 25.2p 25.3p - Operating cash flow 1 915 1 826 +5% Results…
  30. Strategy and 1H Results Presentation – BG Group – slide 30
    Financial performance First Half 2007 operating profit 1H 2007 1H 2006 % yoy million million E&P 1 191 1 373 -13 % LNG 209 172 +22 % T&D 120 122 -2 % Power 69 62 +11 % Other activities (19) (19) - Group total 1 570 1 710 - 8%…
  31. Strategy and 1H Results Presentation – BG Group – slide 31
    Financial performance First Half operating profit - LNG 1H 2007 1H 2006 million million Shipping and marketing 188 155 Liquefaction 57 54 Business devt and other (36) (37) Operating profit 209 172 Results excluding disposals,…
  32. Strategy and 1H Results Presentation – BG Group – slide 32
    Financial performance First half operating profit T&D 1H 2007 1H 2006 million million Comgas 98 98 Other 22 24 Operating profit 120 122 Results excluding disposals, certain re-measurements and impairments Total operating profit…
  33. Strategy and 1H Results Presentation – BG Group – slide 33
    Financial performance First half operating profit Power 1H 2007 1H 2006 million million Subsidiaries 28 12 JVs and associates 41 50 Operating profit 69 62 Results excluding disposals, certain re-measurements and impairments…
  34. Strategy and 1H Results Presentation – BG Group – slide 34
    Financial performance First Half 2007 Operating cashflow 1 915 m (up 5%) Capex 1 365 m Capex less acquisitions 860 m Shares bought back 219 m Net funds 213 m Strong financial position 35
  35. Strategy and 1H Results Presentation – BG Group – slide 35
    Financial performance Conclusions Good operating performance Good progress on growth programme Broad portfolio of long-term options Robust strategy delivering value to shareholders Creating shareholder value 36
  36. Strategy and 1H Results Presentation – BG Group – slide 36
    Appendix
  37. Strategy and 1H Results Presentation – BG Group – slide 37
    Legal Notice 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…
  38. Strategy and 1H Results Presentation – BG Group – slide 38
    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…
  39. Strategy and 1H Results Presentation – BG Group – slide 39
    Appendix Glossary Increase or (decrease) GAAP Generally Accepted Accounting Principles United States dollar GIIP Gas Initially In Place UK pounds sterling HIIP Hydrocarbons initially in place m Million UK pounds sterling HPHT High…
  40. Strategy and 1H Results Presentation – BG Group – slide 40
    Portfolio for growth North Sea: Production BG net production 000s boepd 200 Production up 21% 2007-12 Increases from existing assets 150 Jasmine onstream 2010 Jackdaw onstream 2012 100 Other planned discoveries 2010+ 50 Plateau of…
  41. Strategy and 1H Results Presentation – BG Group – slide 41
    Portfolio for growth Karachaganak: Phase III & full potential BG net production 000s boepd 250 Expanded Phase III plans 200 Liquids sales up to 16.5 mtpa 150 Gas sales 16 bcma 100 Up to 120 additional wells Increased gas injection…

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