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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.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb.
Operating update and shareholder activism
15 Feb 17
December and January have seen the emergence of shareholder activism at Bowleven (BLVN), bringing its strategy and management into greater focus. Its largest shareholder (Crown Ocean Capital, COC) evolved from being a supportive shareholder to voting against a number of resolutions at the December AGM, to recently calling for the widespread removal of the board and a radically different company structure. Operationally, the company reports that a new development concept is under review by the stakeholders in Etinde, where production would be piped to existing gas processing facilities in Equatorial Guinea. Such a solution would (if approved) require significantly less capex and could be brought online relatively quickly vs other solutions (fertiliser, FLNG, gas to power). We leave our valuation largely unchanged, save for a revision to cash holding to reflect the recent operational update. Our new core NAV is 49p/share.