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Q4 & FY 2012 Results Presentation – BG Group

BG Group · Feb 5, 2013 · 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. Q4 & FY 2012 Results Presentation – BG Group – slide 1
    2012 results presentation 5 February, 2013 Deepsea Metro I drillship Tanzania 1
  2. Q4 & FY 2012 Results Presentation – BG Group – slide 2
    Welcome Andrew Gould Chairman LNG storage tank 2 Curtis Island, Australia
  3. Q4 & FY 2012 Results Presentation – BG Group – slide 3
    Introduction Chris Finlayson Chief Executive FPSO 2 Cidade de So Paulo departure Brazil
  4. Q4 & FY 2012 Results Presentation – BG Group – slide 4
    Strategic intent Strategy will build on BG Groups distinctive strengths World class exploration Unique LNG model Commercial agility Focused portfolio Continual active review Industry leading growth in shareholder value…
  5. Q4 & FY 2012 Results Presentation – BG Group – slide 5
    Priorities for 2013 Relentless focus on safety Production delivery in our base assets, in particular Egypt & UK Delivery of key projects with clear quarterly milestones In Brazil having a third producing FPSO vessel onstream in Q2…
  6. Q4 & FY 2012 Results Presentation – BG Group – slide 6
    Full year results Den Jones Interim Chief Financial Officer Main pipeline network 7 Narrows crossing, Queensland, Australia
  7. Q4 & FY 2012 Results Presentation – BG Group – slide 7
    Reporting segment changes Old segment split E&P LNG T&D Shipping & E&P Liquefaction T&D Marketing New segment split Upstream LNG Shipping T&D discontinued & Marketing 8
  8. Q4 & FY 2012 Results Presentation – BG Group – slide 8
    Financial highlights: Q4 2012 Q4 Q4 YOY 2012 2011 Total operating profit 1 831m 2 089m -12% Upstream 1 169m 1 334m -12% LNG Shipping & Marketing 658m 784m -16% Cash generated by operations 2 248m 2 655m -15% Earnings 1…
  9. Q4 & FY 2012 Results Presentation – BG Group – slide 9
    Financial highlights: 2012 2012 2011 YOY Total operating profit 8 047m 7 732m +4% Upstream 5 464m 5 440m - LNG Shipping & Marketing 2 577m 2 282m +13% Cash generated by operations 10 715m 9 773m +10% Earnings 4 395m 4…
  10. Q4 & FY 2012 Results Presentation – BG Group – slide 10
    Upstream operating profit Year on year Upstream operating profit change (m) 8000 534 352 334 6000 158 5440 18 5464 291 Liquefaction 346 Liquefaction 4000 5149 E&P 5118 E&P 2000 0 2011 Volume Price Opex DD&A Other…
  11. Q4 & FY 2012 Results Presentation – BG Group – slide 11
    E&P unit cost performance Annual unit opex cost (/boe) Annual unit DD&A cost (/boe) BG Group 2012 BG Group 2012 BG Group 2011 BG Group 2011 Peer 2011 Peer 2011 0 20 40 0 10 20 Source (2009-2011): Evaluate Energy 2012 BG Group…
  12. Q4 & FY 2012 Results Presentation – BG Group – slide 12
    Strong reserves replacement BG Groups reserves replacement 3 year total reserves replacement 250% 217% 200% 176% 150% BG Group 2010-2012 BG Group 2009-2011 Peer 2009-2011 100% Peer group includes Super Majors and US and…
  13. Q4 & FY 2012 Results Presentation – BG Group – slide 13
    LNG* operating profit Year on year LNG Shipping & Marketing operating profit change (m) 3000 2923 512 217 2577 Liquefaction 2282 2000 1000 0 2011 Margin & Mix Shipping 2012 Old LNG segment * LNG Shipping & Marketing 14
  14. Q4 & FY 2012 Results Presentation – BG Group – slide 14
    LNG sources and destinations Sources loaded (mtpa) Destinations delivered (mtpa) 15 Long-term 15 Sales volume Short-term contracts 13.4 13.4 (12.1 mtpa) third-party (11.6 mtpa) purchases 12.7 0.6 Ship use 12.7 1.5 0.6 1.0 1.5…
  15. Q4 & FY 2012 Results Presentation – BG Group – slide 15
    2013 LNG outlook 11.3 mtpa of LNG volumes* from our long-term contracted supply Reduction of 0.3 mtpa from 2012 principally due to Egypt Minimal spot volumes Singapore LNG to start commercial operations in Q2 2013 Portfolio…
  16. Q4 & FY 2012 Results Presentation – BG Group – slide 16
    2012: sources and uses of funds (bn) Net cash inflow of 0.9 bn 16 15.4 Net additional borrowings of 1.2 bn 1.2 Borrowings 14.5 Net cash outflow 0.3 bn before borrowings 0.6 1.4 Dividends Other & interest Capital investment: 10.4 bn…
  17. Q4 & FY 2012 Results Presentation – BG Group – slide 17
    2012-13: cash capex split (bn) 15 12.0 11.5 0.8 0.8 0.3 10.4 10 1.1 Other 3.0 Base 2.7 assets 2.7 1.6 Brazil 5 5.0 5.5 Australia* 0 2012 Q1 guidance Australia Other 2012 2013 * 2013 cash capex in Australia assumes…
  18. Q4 & FY 2012 Results Presentation – BG Group – slide 18
    Portfolio rationalisation progress Total capital release (bn) Portfolio refocused to E&P and LNG 10 Capital release of 8.1 bn by end 2013 Significantly exceed 5 bn target Key milestones in Q4 End 2013 QCLNG sell-down: HOA signed…
  19. Q4 & FY 2012 Results Presentation – BG Group – slide 19
    Financial structure & liquidity Cash (m) and gearing (%) Maintain a robust financial structure 5000 30% Gearing fell from 27% to 24% (2011-12) Cash balance increased to 4.4 bn 4000 Diversifying & extending funding sources 20% Average…
  20. Q4 & FY 2012 Results Presentation – BG Group – slide 20
    Excellence in execution Armada UK
  21. Q4 & FY 2012 Results Presentation – BG Group – slide 21
    2012 safety performance TRCF* (per million work hours) Two fatalities in 2012 2.5 Lessons learned shared around Group Group Majority of Group** met TRCF target 2.0 Top quartile performance*** Industry Average*** QGC missed target 1.5…
  22. Q4 & FY 2012 Results Presentation – BG Group – slide 22
    Base asset production performance Variance to 2012 budget (kboed) 2012 base asset production 10 Majority producing close to expectations 2008-12 (excluding UK and Egypt) 0 550 mmboe produced 89% production efficiency -10 No…
  23. Q4 & FY 2012 Results Presentation – BG Group – slide 23
    Egypt: WDDM production performance Production (kboed) & PE* (%) Two producing assets (Rosetta & WDDM) 160 100% Rosetta producing to plan WDDM Good production efficiency of 90% 120 75% Recent decline due to water breakthrough 2012…
  24. Q4 & FY 2012 Results Presentation – BG Group – slide 24
    Egypt: WDDM recovery plan Improve predictability of field performance Increase production from existing well stock Workovers & acid stimulations Sanctioned next phase of WDDM development subject to partner approval Commence drilling…
  25. Q4 & FY 2012 Results Presentation – BG Group – slide 25
    UK: production performance Production (kboed) & PE (%) Significant value 2008-2012 200 100% ca 12 bn operating profit Added 200 mmboe of reserves & resources 150 75% Non-operated assets; 2/3 of 2012 shortfall Elgin/Franklin well…
  26. Q4 & FY 2012 Results Presentation – BG Group – slide 26
    UK: improving production efficiency Armada; step change in maintenance PE increased to 82% over 4 years Applying Armada knowledge Maintenance campaigns: Everest & Lomond Flotels to provide additional accommodation Significant…
  27. Q4 & FY 2012 Results Presentation – BG Group – slide 27
    2013 production outlook Quarterly milestones 7 projects coming onstream Q1 Elgin/Franklin restart Brazil FPSO 2 onstream Growth projects offset by Everest East expansion onstream Strategic decision to lower production in US…
  28. Q4 & FY 2012 Results Presentation – BG Group – slide 28
    Excellence in execution Kenya water treatment plant Australia
  29. Q4 & FY 2012 Results Presentation – BG Group – slide 29
    Good progress on QCLNG Current status Upstream Wells 148 drilled Q4 2012, total 1160 New field compressor stations (FCS) 2 operating, 6 under construction Ruby central processing plant 25% complete, all compressors delivered…
  30. Q4 & FY 2012 Results Presentation – BG Group – slide 30
    QCLNG on track for 2014 LNG sales 2013 2014 Q1 Q2 Q3 Q4 H1 H2 Wells: 1290 1450 1600 1750 2000 wells Upstream First major water facility (Kenya) Central processing plant (Ruby) Six FCSs (for Ruby) Gas collection header…
  31. Q4 & FY 2012 Results Presentation – BG Group – slide 31
    QCLNG on budget Two-train project 51% complete* Scope to fill 1st train 60% complete Contracts & other agreements: 94% Project on schedule Confident in 20.4 bn budget (2011-14) Tank construction, QCLNG Curtis Island,…
  32. Q4 & FY 2012 Results Presentation – BG Group – slide 32
    Brazil: good progress Exceptional reservoir performance Production to date 65 mmboe (gross) Reserves & resources: 4-6-8 bn boe* FPSOs increased from 13 to 15 ca 2.5 mmboed capacity by 2018 Strong project execution 18 wells drilled…
  33. Q4 & FY 2012 Results Presentation – BG Group – slide 33
    FPSO 1 performing better than expected 50 mmboe gross production to date Sustained exceptional well deliverability 20 mmboe from single well 100 kboed from 4 wells 1st horizontal producer onstream Q2 2013 1st water alternating gas…
  34. Q4 & FY 2012 Results Presentation – BG Group – slide 34
    Continuously improving execution Large number of FPSOs and wells Continuous improvement as processes are repeated Wells: 50% capex 25% reduction in drill times* in 2012 Potential for further cost reduction 100 Christmas trees…
  35. Q4 & FY 2012 Results Presentation – BG Group – slide 35
    Exploration Deepsea Metro I drillship Tanzania36
  36. Q4 & FY 2012 Results Presentation – BG Group – slide 36
    Continued E&A success in 2012 18 out of 19 E&A wells were successful Delivered additional 800 mmboe of discovered resources Matured 350 mmboe of resources to reserves Tanzania ca 10 tcf gross including giant Jodari discovery Iara…
  37. Q4 & FY 2012 Results Presentation – BG Group – slide 37
    Exploration in 2013 Global 2013 E&A operations Key wells Exploration: Egypt (Notus), Brazil (Sagittario), UK HPHT (Thunderer & Jade S) USA UK 2-3 wells 3 wells First Kenya well around year end Algeria Thailand Appraisal: Australia…
  38. Q4 & FY 2012 Results Presentation – BG Group – slide 38
    Total reserves & resources Total reserves & resources (mmboe) 20000 18511 17130 16180 4583 15000 14494 3784 13126 3707 3433 3562 6160 6739 10000 5757 4931 3722 5000 3939 3758 3823 3383 3530 2600 2893 3247 3431 2459…
  39. Q4 & FY 2012 Results Presentation – BG Group – slide 39
    Summary Significant milestones to deliver in 2013 Major growth assets & base assets Australia & Brazil are on budget and schedule Significant volume & cash flow growth in 2014 & 2015 Exploration remains core to our strategy…
  40. Q4 & FY 2012 Results Presentation – BG Group – slide 40
    2012 results presentation 5 February, 2013 Deepsea Metro I drillship Tanzania41
  41. Q4 & FY 2012 Results Presentation – BG Group – slide 41
    Definitions Increase or (decrease) mmboe Million barrels of oil equivalent United States dollar mmboed Million barrels of oil equivalent per day A Australian dollar mmbtu Million British thermal units Greater than mtpa Million tonnes…

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