Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Centrica shares or other securities. This presentation contains certain forward-looking statements…
Mark Hanafin Managing Director, Centrica Energy 3
Sam Laidlaw Chief Executive, Centrica
Agenda 9:00am Main presentation Introduction Sam Laidlaw Update on strategy and progress Mark Hanafin Financial overview Andrew Le Poidevin Q&A 11:00am Business unit presentations Upstream gas and oil Jonathan Roger Power…
Our Strategic Priorities 1 Grow British Gas . . . leading the transition to low carbon homes and businesses 2 Deliver value from our growing upstream business . . . securing sustainable energy for our customers 3 Build an…
Centrica Energy provides an earnings hedge to the group while delivering growth and value Energy hedge1, % Pre tax Post tax 87 Provide appropriate level of hedge to ensure competitive position 67 Norwegian asset acquisition 65…
Responding to the Energy Trilemma Security of supply The decarbonisation agenda Affordability UK gas supply from imports1, % Power carbon intensity2, gCO2/kWh Gas prices3, p/th 68 69 524 43 498 20 48 323 Power prices3,…
Delivering value from our growing upstream business Maximising returns Further investment for Deploying from existing assets growth and value distinctive capabilities Performance improvement World-class asset Further attractive…
Mark Hanafin Managing Director, Centrica Energy
Centrica Energy is delivering on its strategy Consistent delivery in 2010 and 2011 Maximising returns Deploying distinctive Further investment for from existing assets capabilities growth and value Strong HSE performance 8 new…
The Centrica Energy leadership team Mark Hanafin Jonathan Roger Sarwjit Sambhi Andy Netemeyer Managing Director MD Upstream MD Power MD Midstream Andrew Le Poidevin Niels van Buuren Carol Frost David Isenegger Finance…
We are positioned to capitalise on opportunities in the changing global energy market Recent developments How we expect the market to evolve Fukushima and German nuclear Long-term UK and global prospects for gas closures are…
Upstream gas and oil is delivering stable secure production Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value 2009: Assets in decline 2011: Long-term…
Our production has been lifted by the recent Statoil acquisition Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value KvB pipe 1,525m (965m) transaction1…
Upstream performance is ahead of most industry benchmarks Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Upstream gas and oil performance metrics…
In Power we are investing in low carbon generation and improving the performance of our existing assets Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Power…
This is consistent with CEs role in providing an earnings hedge while delivering growth and value Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Post tax…
We are deploying distinctive capabilities in Upstream Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value World-class stewardship Focus on HSE, maximising…
Our capabilities in Upstream are delivering value Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Case Study: Redeveloping the Greater Markham Area hub…
We are deploying leading capabilities across the wind value chain Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Effective project Identifying and acquiring…
We have a strong pipeline of new wind capacity Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value UK offshore wind development pipeline Our wind generation…
CEs five-year growth strategy: Upstream Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Further investment for Grow upstream production to reach 75 mmboe/a in…
CEs five-year growth strategy: Power Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Further investment for Offshore wind growth and value Deliver Lincs…
Building on our established business model CEs five year strategy Maximising returns Deploying distinctive Further investment for from existing assets capabilities growth and value Strong portfolio of assets, World-class asset…
Andrew Le Poidevin Finance Director, Centrica Energy
Forward markets indicate a higher commodity price environment Gas price1 Oil price2 p/th, month average US per barrel, month average 80 150 60 100 40 50 20 Actual Month-ahead Actual Month-ahead 0 0 2009 2010 2011 2012 2013…
CE has seen significant recent growth and is well positioned to capture future upside Operating profit bn Upstream Power Maximising returns from existing assets 1.5 Sustainable production outlook 1.0 Active cost base management…
We are actively managing our cost base Other1 Upstream costs increasing but managed Lifting Costs DD&A Total production costs, bn Average unit cost, /boe 1.2 1.1 20 Industry trend toward higher cost 0.2 18 0.8 16 production 0.5…
Our production mix will drive tax rates Oil and gas production by tax regime % by volume Marginal rate1 Supplementary Corporation Tax (SCT) on all UK fields was NL2 45% raised unexpectedly in March 2011 from 20% to 32% T&T3…
Significant internal cash generation is available to fund growth Centrica Energy cash flow and investments 2010 2011E 2012E 2015E bn bn bn, total over 4 years 1.1 1.1 1.0 5.2 5.3 0.9 0.7 Statoil Statoil acquisition 1.3…
Each project is subject to a disciplined capital approval and project management process Strict project governance Capital allocation framework Continuous Improvement 1. Project Information Consideration Sterling Currency Name of…
High return projects approved in 2010 and 2011 Upstream development projects approved, 2010 - 2011 IRR at FID1, % Exploration-led developments benefitting from deep regional sub- surface knowledge 60 Rapid cycle times, with…
Sam Laidlaw Chief Executive, Centrica 34
Building on our established business model CEs five year strategy Maximising returns Deploying distinctive Further investment for from existing assets capabilities growth and value Strong portfolio of assets, World-class asset…
Q&A
Jonathan Roger Managing Director, Centrica Energy Upstream
Centrica Energy Upstream We have made significant progress in 2010 and 2011 Top three gas producer on UKCS UK and NL Most active exploration and appraisal drilling programme Largest net acreage in 2010; 7 blocks in 26th round…
Centrica Energy Upstream We are creating a large, diversified business We now have 1.0bn boe reserves and resources Net resources at end-20101 19% 19% Oil T&T 48% Contingent 28% Norway (2C) 81% Gas Proved + 52% probable…
Centrica Energy Upstream Our portfolio delivers a sustainable 60 70mmboe/a Upstream oil and gas production profile Production volume, mmboe1 kboe/d 70 180 60 Exploration 150 Sustainable 60 - 70mmboe/a to 2020 50 Current Future…
Base production We have world-class stewardship of production hubs Production hub1 characterisation and strategy Cornerstone: 280mmboe Cornerstone maximise value: High Manage unit costs Kvitebjrn Morecambe Enhance production…
Current developments We are delivering challenging mid-size capital projects Delivering significant near-term reserves into Utilising strong capabilities in project production1 delivery 2P reserves, mmboe; planned year of…
Current developments Cygnus one of the largest undeveloped UK gas fields Top reservoir depth surface above gas water contact 100mmboe gross of recoverable reserves Located 160km offshore the Norfolk coast in Blocks 44/11 and…
Future developments We have a broad portfolio of medium-term options Our development funnel is healthy We plan to add significant production through future developments2 In-plan mmboe, plan production kboe/d 45 120 350mmboe…
Exploration A stable programme supports long-term production We expect to add 30mmboe/a of 2C by exploration Leveraging our capabilities and Maturation funnel, exploration spend of 100m per year commitment Extensive knowledge of…
Exploration Fogelberg - our exploration strategy in action Deploying our capabilities 6506/9-2S Fogelberg used our subsurface knowledge of the Jurassic Brent formation developed at Statfjord and Heimdal Development could establish…
Centrica Energy Upstream We plan a balanced approach to reserve replacement Our current model is a targeted blend of organic and inorganic growth Current Exploration 2C 2P 2P production 30 35mmboe/a undeveloped undeveloped…
Centrica Energy Upstream Statoil acquisition moves us towards our strategic goal Production We have established a production target mmboe/a of 75mmboe/a over the next three years 100 The Statoil acquisition moves us…
Centrica Energy Upstream Our strategy builds on our established business model CEs five year strategy Maximising returns Deploying distinctive Further investment for from existing assets capabilities growth and value Strong…
Sarwjit Sambhi Managing Director, Centrica Energy Power
Centrica Energy Power Our power business has been transformed since 2008 Generation capacity has grown and diversified Year-end capacity, Centrica share, GW 6.8 6.8 5.1 1.8 1.8 Nuclear 4.1 0.2 0.2 0.2 Wind 0.1 4.9 4.9 4.9…
Centrica Energy Power We are benefitting from our diversified portfolio Base-load clean spark spreads are low However, base-load power prices are high /MWh, month average /MWh, month average 14 80 12 70 10 60 50 8 40 6 30…
CCGT However over-supply will remain a challenge for CCGT Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value We expect marked capacity withdrawal from 2015 With…
CCGT Given these challenges we are restructuring the portfolio Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Plant Start Year MW Langage 2010 885…
Biomass and CCGT Further growth options are being developed Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Roosecote biomass project Option on 80 MW of…
Offshore Wind Our track record demonstrates strong capabilities Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Effective project development and partnering…
Offshore Wind Lincs is progressing well Maximising Further Deploying returns investment for distinctive Turbines Offshore substation from existing assets capabilities growth and value Installation commencing Fully installed,…
Offshore Wind We have a large, advantaged development pipeline Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Large wind development pipeline Significant…
Nuclear Strong performance from EDF existing nuclear fleet Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Strong nuclear performance in 2011 YTD Upside…
Nuclear We will only invest in new nuclear if conditions are met Maximising Further Deploying returns investment for distinctive from existing growth and capabilities assets value Key milestones to FID Requirements Robust…
Centrica Energy Power Our strategy builds on our established business model CEs five year strategy Maximising returns Deploying distinctive Further investment for from existing assets capabilities growth and value Responding to…
Loading...
