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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.
30 Nov 16
Abzena (ABZA): Interim results indicate happy customers (BUY) | Horizonte Minerals* (HZM): Fund raise completed (CORP) | SacOil* (SAC): Half-year trading statement (CORP) | Revolution Bars (RBG): New openings (BUY) | Amino Technologies* (AMO): Multi operator FUSION roll out (CORP)
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
GTL transaction not going ahead
01 Dec 16
Intelligent Energy (IEH) has announced that the deal to acquire the Energy Management Business of GTL will not now be consummated. The move leaves management free to concentrate on driving sales of commercially ready B2B products, which is a key element of its strategy. We adjust our FY17e revenue estimate while leaving our pre-exceptional losses and cash-flow forecasts unchanged.
24 Nov 16
Quixant* (QXT): Gaming gains (CORP) | SCISYS* (SSY): Bringing good news from Germany (CORP) | Hayward Tyler Group*: Contract wins (CORP) | Sound Energy (SOU): TE-7 flow rate and fund raise (BUY) | Water Intelligence* (WATR): Growth and improving returns in a defensive market (CORP) | Imaginatik* (IMTK): Interim trading update (CORP)
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.