BG Group Chief Executive, Chris Finlayson will today deliver a strategy update outlining the next stage of the company’s growth.
The Group’s immediate priority is execution, primarily the delivery of its 2013 milestones and the growth projects in Australia and Brazil. As detailed in the company’s first quarter results, BG Group is making good progress and expects to see significant volume and cash flow growth in 2014 and 2015.
Today, CEO will address the longer-term outlook, detailing how BG Group will build on its competitive strengths and strong pipeline of new growth opportunities, as a focused E&P and LNG company.
Key elements of BG Group’s strategy include:
BG Group believes this strategy will deliver industry leading growth in shareholder value, driven by its world-class exploration and distinctive LNG model, expecting:
Commenting on the strategy, Finlayson said: “BG Group is a great company with a strong pipeline of projects and deep-set skills and expertise that differentiate us, particularly in exploration and LNG. We are big enough to explore the best frontier acreage but small enough to be agile – valuable attributes, which I intend to keep.
“In a period where LNG demand is expected to grow twice as fast as overall gas demand, with underlying supply needing to grow by nearly 9% to meet total demand, BG Group is well positioned to capitalise on this growing market through our competitive advantages of world-class exploration and a distinctive LNG business, facilitated by our commercial agility.
“While we expect LNG demand to grow, our exposure to oil is also increasing through our outstanding portfolio in Brazil. We are making good progress with the execution of the programme and, as our knowledge of these giant fields grows, we expect further development phases to accelerate production and increase recovery, significantly increasing the value of the assets.
“In order to deliver successfully on this rich opportunity set, we will manage our portfolio more actively, employing simple processes with clear accountabilities, while remaining lean, agile, and suitably resourced.
“I look forward to delivering this strategy for BG Group, ensuring we become a high growth, high quality, global E&P and LNG company delivering excellence in execution and industry leading growth in shareholder value.”
BG Group’s strategy will be presented to analyst and investors at 1200 BST today at an event hosted by BG Group Chairman Andrew Gould and Chief Executive Chris Finlayson. The presentation will be webcast live at www.bg-group.com , after which a recording and transcript of the event will be available online. The slides used in the presentation will be available online at the same web address from 1200 BST.
Key Financial and Operational outlook and disclosures
Financial outlook
Production & Exploration outlook
* Bolivia, Egypt, India, Kazakhstan, Norway, Thailand, Trinidad & Tobago, Tunisia, UK, USA.
LNG outlook
* Egypt, Trinidad & Tobago and West Africa. Excluding QCLNG and Sabine Pass.