BG Group 2013 Q4 & Full Year Results and 2014 Outlook Hibiscus production platform, Trinidad & Tobago
Introduction Chris Finlayson Chief Executive Bongkot production platform, Thailand
2013 Q4 & Full Year Results 2013 TRCF* Beat individual safety targets Group below 1.75 target QGC sharp improvement Improved during peak construction safety Asset integrity No Tier 1 hydrocarbon performance releases One road…
Financial Review Simon Lowth Chief Financial Officer Crane operations on Poinsettia production platform, Trinidad & Tobago
2013 Q4 & Full Year Results Q4 2013 Q4 2012 YOY Total operating profit 1 908m 1 830m +4% Financial highlights Upstream 1 116m 1 168m -4% LNG Shipping Q4 2013 & Marketing 778m 658m +18% Net cash inflow from 2 086m 1 639m +27%…
2013 Q4 & Full Year Results 2013 2012 YOY Total operating profit 7 616m 8 050m -5% Financial highlights Upstream 4 967m 5 467m -9% LNG Shipping FY 2013 & Marketing 2 643m 2 577m +3% Net cash inflow from 7 817m 7 995m -2%…
2013 Q4 & Full Year Results Egypt USA Impairments 1.3 billion post tax 1.1 billion post tax Business environment has deteriorated; Lower forward gas market prices continued uncertainty Continued low rig count Lower reserve…
2013 Q4 & Full Year Results E&P volumes (kboed) Base asset decline offsets growth from new projects * Growth assets are Brazil and Australia 9
2013 Q4 & Full Year Results Upstream operating profit (m) Improving mix offset by costs, volumes 10
2013 Q4 & Full Year Results E&P cost (m) E&P cost growth driven by new assets & reserve revisions * Includes royalties, tariffs and insurance ** Includes Brazil oil shipping/R&D costs, Australian third party gas purchases and…
2013 Q4 & Full Year Results E&P (/boe) Unit costs rising with improving revenue mix 12
2013 Q4 & Full Year Results LNG Shipping & Marketing total operating profit (m) Margin & mix offsets fewer LNG cargoes 13
2013 Q4 & Full Year Results 4.8 billion of transactions closed in 2013 Key transactions: 2013 QCLNG sell down to CNOOC (Australia) portfolio Gujarat Gas (India) management TGGT (US) Quintero LNG (Chile) delivers Cotton Valley…
2013 Q4 & Full Year Results 2013 2012 Net cash flow from operations 7 817 7 995 Cash Cash flow from investing activities (10 883) (9 834) generation & Net interest (560) (541) Free cash flow (3 626) (2 380) deployment…
2013 Q4 & Full Year Results YE reserves and resources (mmboe)* 1 000 mmboe reserves and resources monetised 231 mmboe produced 860 mmboe disposals Organic Organic RRR (SEC) : 1 year RRR 1 year 115% 3 year 179% of 115% Adopting…
2013 Q4 & Full Year Results Improved revenue mix on lower volumes Finance Increased expenditure to drive future growth and value summary Business performance EPS and net debt flat year on year Final dividend of 15.68 cents, full…
Execution & Strategy Chris Finlayson Chief Executive FPSO Cidade de Paraty, Brazil
Execution & Strategy 2014 production volumes 2015 production volumes 590 630 kboed* 710 750 kboed* 2014 & 2015 Base assets contributing 480-520 kboed Production growth driven by Brazil and Australia production Production ramp up…
Execution & Strategy Unit operating expenditure expected to be 15.50 - 16.25 per boe* 2014 Enhanced UK asset integrity programme Cost of new facilities in Australia and Brazil ahead of plateau production E&P cost Declining…
Execution & Strategy Global market remains tight Modest supply growth Outpaced by growing Asian demand 2014 LNG Operating profit LNG Shipping & Marketing 2.1-2.4 billion* operating Reflects lower supply volumes from Egypt…
Execution & Strategy QCLNG first LNG in Q4 2014 2014 Brazil volumes increase; capacity grows priorities Clear project milestones for 2014 Continue exploration programme and advance LNG options Capex lower than 2013 On track to…
Execution & Strategy 2014 Q1 Q2 Q3 Q4 Six field compressor stations start up (FCS) (Ruby Jo) QCLNG - Upstream Three FCS start up (for Bellevue) countdown to first Ruby Jo CPP Bellevue CPP LNG LNG Complete 1st Start…
Execution & Strategy Drilling programme ahead of schedule Well performance in line with expectations Train 1 has initial spare capacity as QCLNG BG Group production ramps-up gas supply Accessing short-term third-party volumes to…
Execution & Strategy BSR installations for FPSO2 and FPSO3 complete FPSO 2 4 producer wells to reach Production plateau FPSO 3 5/6 producer wells to reach ramping up plateau in Brazil Operator expects to install FPSOs 4 & 5 in…
Execution & Strategy Q1 Brazil - FPSO 2 second well connected Thailand - Bongkot South Phase 4b Q2 2014 Brazil - FPSO 3 second well connected QCLNG - commissioning of gas turbine generators milestones Q3 Egypt - WDDM Phase 9a…
Execution & Strategy Early Distinctive LNG Hub entrant knowledge opportunity strategy Prospect generation Brazil (Barreirinhas) (Seismic acquisition & processing; potential Uruguay field data acquisition & Honduras Exploration -…
Execution & Strategy Aim to monetise c.50% of discovered resources in the next 10 years Demonstrated capability with 2012 and Actively 2013 disposals Disposal programme ongoing managing All assets actively under review the…
Execution & Strategy 2013 capital expenditure below 12 bn budget Capex set 2014 capital expenditure will be lower than 2013 to decline 70% of capex for Australia & Brazil 2015-2016 capital expenditure expected to fall to 8-10…
Execution & Strategy 2014 another key year Summary Highlighted by QCLNG first LNG in Q4 2014 Focus on delivery Clear project milestones for 2014 Remain on track into 2015 Committed to value strategy & active portfolio…
Execution & Strategy Reference Conditions Brent Oil price real (1/1/2014): 2014 and 2015: 100/bbl US Henry Hub real (1/1/2014): 2014: 4.0/mmbtu; 2015 4.25/mmbtu US/UK exchange rates of 1.55:1 US/AUD exchange rates of 1:A1.05 US/BRL…
BG Group 2013 Q4 & Full Year Results and 2014 Outlook Hibiscus production platform, Trinidad & Tobago
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