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Research Tree provides access to ongoing research coverage, media content and regulatory news on BG GROUP PLC. We currently have 9 research reports from 3 professional analysts.
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BG GROUP PLC
BG GROUP PLC
Tips for 2016 – Q3 Update
10 Oct 16
ACACIA MINING PLC (ACA LN) | BG GROUP PLC (BG/ LN) | DEKELOIL PUBLIC LTD-DI (DKL LN) | DIAGEO (DGE LN) | GLAXOSMITHKLINE (GSK LN) | HSS HIRE GRP PLC (HSS LN) |HUMMINGBIRD RESOURCES PLC (HUM LN) | LLOYDS BANKING GROUP PLC (LLOY LN) | MELROSE INDUSTRIES PLC (MRO LN) | MOTIF BIO PLC (MTFB LN) | MYSQUAR LTD (MYSQ LN) | TULLOW OIL PLC (TLW LN) | UBM PLC (UBM LN) | WHITBREAD (WTB LN)
08 Aug 16
For whatever ill-considered political motives and miscalculations it was deemed appropriate for the people of the United Kingdom to be offered a Referendum on the UK’s membership of the European Union, the result of the vote on the 23rd June 2016 is bringing profound change. Probably, individuals’ reasons for how they voted – in some cases nothing to do with the EU – will be lost in the sands of time. After several high profile ‘departures’ from the political stage immediately after the vote result became known – one Prime Minister (David Cameron), one former Mayor of London and prominent Brexiteer (Boris Johnson) and former leader of UKIP (Nigel Farage) – the Conservative Party sought to elect a new party leader and Prime Minister. This Byzantine process was expected to reach a conclusion in time for the Conservative Party conference in early-October. In the event, prospective candidates Fox, Crabb, Gove and Leadsom all came and went at a breath-taking pace to leave Theresa May as the next party leader and Prime Minister – all in two weeks. Just for good measure, the Labour Party is simultaneously attempting hara-kiri.
Good results, little interest (exc Shell)
28 Jan 16
Last week BG announced its expectations for the full year 2015. The company sees: • Average E&P production volumes of 704 thousand barrels of oil equivalent per day (kboed), ahead of guidance of 680-700 kboed; Upstream EBITDA1 of at least $4.1 billion. • LNG Shipping & Marketing EBITDA1 of at least $1.4 billion, in line with guidance of around the middle of the $1.3-1.5 billion range; Business Performance2 earnings of around $1.7 billion. • Total earnings of at least $2.3 billion, which are expected to include a post-tax gain of at least $0.6 billion in respect of disposals, re-measurements and impairments; net cash flow from operating activities of around $4.3 billion. • Capital investment on a cash basis of around $6.4 billion, lower than guidance of around $6.5 billion.
LNG remains robust (on liquefaction)
13 Nov 15
The group reported its Q3 15 earning, down 37% yoy to $1.24bn, better than the $1.16bn expected. By division: - *Upstream's EBITDA came down 22% (only) to $1.09bn thanks to production up 26% at 716kbpd, with a greater contribution from oil (vs. dry nat gas). Brazilian production reached 175kbpd in October*. This growth (from Australia, Brazil and Norway) was partially offset by production in Egypt. Lifting costs increased by 20% following the ramp up of production in Brazil and Australia. Liquefaction's EBITDA increased by $156m to $184m reflecting the first full quarter of commercial operations at QCLNG Train 1. - LNG Shipping and Marketing's EBITDA came down 65% to $213m, thanks to higher volumes. *Despite the challenges in the LNG environment, the group maintained its EBITDA guidance for 2015 in the range of $1.3-1.5bn based on mid-October forward commodity price curves.* The majority of the new supply from QCLNG is in the upstream division (as is liquefaction). The Shipping and Marketing segment delivered 75 cargoes (4.8m tons) in the quarter. 54 were supplied to Asians marketing the LNG, 45 cargoes from QCLNG were delivered in the first nine months for €844m. Gearing came in at 24.5% with net debt at 24.5%. - The group’s 2015 cost and efficiency programme is progressing well, with the emphasis on lifting, organisation and infrastructure cost savings, and remains on track to deliver at least the $300m targeted savings for 2015. BG Group’s sensitivity to a $1/bbl movement if the oil prices is still expected to be between $60-$70m at te earnings level and between $70-$80m on the post operating cash flow, on an annual basis for 2015. In Q3 15 cash flow from operations came in at €844m with investment still high at $1.3bn.
Impressive production growth, worrying LNG
04 Aug 15
BG group reported a net result at $1.17bn in Q2 15, above expectations thanks to strong production growth and lower tax and despite falling LNG earnings. By division: 1) Upstream Ebit declined by 65% yoy to $422m in Q2 15, but nearly doubled compared to Q1 15 thanks to strong production. Open decreased from $15.42/bbl to $14.3/bbl due to a reduction in royalty (on lower commodity prices) and on the back of an overall production increase combined with the change in the mix of producing fields. The group revised up its production guidance to the “upper half” of its previous guidance of 650-690kbpdd Production was up 19% to 703kbpd, driven by Australia and Brazil. Production volumes in both Australia and Brazil more than doubled in the quarter, to an average of 80kbpd in Australia and 143kbpd in Brazil. In Australia, Train 2 started up in July, so production continues to ramp up as planned and the group expects up to 20% of gas for the two train to be supplied by third parties during the ramp up phase. The full projects remain on track to reach plateau production in mid-2016. In Brazil, the fourth and fight FPSOs will continue to ramp up during 2015 with additional well connections. The 6th FPSO should be on stream in Q3 15. 2) LNG Ebit came down by 68% yoy to $236m in Q2 15, with the Ebitda margin at $72$/tonnes (vs. $252/t a year ago). 58 cargoes have been shipped. LNG Ebitda guidance remains in the $1.3-$1.5bn range for 2015 based on the mid-July forward commodity curve. Supply volumes are expected to be slightly lower than in 2014. As previously mentioned by the company, most of QCLNG's contribution will be reported in the upstream division Cash flow from operations came in at $926m, with capex of $1.3bn and dividends of $495m. Divestments (QCLNG pipeline) of $4.7bn helped to decrease net debt to $8.5bn from $10.3bn with gearing at 22%. Capex on a cash basis is still expected to be 30% lower than in 2014 at between $6-$7bn.
Strong trading leads to upgrades
22 Mar 17
On the back of today’s positive trading update and slightly upgraded profit forecasts for FY2017, FY2018 and FY2019 we have reviewed our DCF analysis. This has led to an increased DCF valuation per share of 1500p (from 1200p) which we have made our new target price (from 1200p). Both TFP and JC Paper have contributed to the upgrades shown in the table below as have favourable currency movements. With the potential for further upgrades due to capitalising 3DP costs to come we maintain our Add recommendation.
Small Cap Breakfast
21 Mar 17
First Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march. Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.
Bang to rights
21 Mar 17
Tullow unexpectedly announced a US$750m rights issue on Friday at a 45.2% discount to the previous close. While this step confirms our investment thesis, the scale of the discount and the timing look like a slap in the face for investors and/or indicative of a weaker financial position than we are modelling. We publish revised estimates to reflect the impact of the issue and cut our Target Price to 215p per share (from 245p). We maintain our Hold recommendation.
Panmure Morning Note 22-03-2017
22 Mar 17
Acacia Mining and Endeavour Mining confirmed merger talks have now ended with Endeavour claiming an inability to “create adequate value for Endeavour shareholders”, most likely, we believe, given the disappointing ruling from the Tanzanian government on copper-gold concentrate sales. We were positive on the merger and believed a credible London listed Pan-African producer capable of challenging Randgold, would have been established. We make no change to our Hold recommendation today, and expect the shares to be marked lower in early trade.