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BG Group (BG.)

  Print      Mail a friend       Annual reports

Tuesday 10 May, 2011

BG Group

1st Quarter Results

RNS Number : 2498G
BG GROUP plc
10 May 2011
 

 



BG Group plc

2011 FIRST QUARTER RESULTS

First Quarter Key Points

 

· Higher UK North Sea tax reduces earnings by $265 million

· LNG operating profit for 2011 expected towards upper end of $1.9 to $2.2 billion range

· Significant progress on long-term growth programme

· Positive appraisal results on the Guará and Iara discoveries in Brazil

· LNG sales agreements signed with Tokyo Gas and Chubu Electric

· Third exploration success offshore Tanzania

 

BG Group's Chief Executive, Frank Chapman said:

"It was a challenging quarter for our E&P operations, with civil unrest in North Africa, flooding in Australia, an increase in UK tax and a shutdown in the North Sea. We now expect modest production growth in 2011. The plans for a ramp-up in production in 2012 and 2013, as well as our 2020 goals, are unaffected and are supported by significant progress with our growth projects in Brazil, the USA and Australia, as well as further exploration and appraisal success in Brazil and Tanzania."

 

First Quarter

 

Business Performance(a)

2011
$m

2010(b)
$m   

 

Total operating profit including share of pre-tax

operating results from joint ventures and associates

1 965

1 955

+1%

Earnings for the period before prior period taxation

1 014

1 097

-8%

Prior period taxation(c)

(195)

-

-

Earnings for the period after prior period taxation

819

1 097

-25%

Earnings per share

24.2c

32.5c

-26%

 

 

 

 

Total results for the period (including disposals, re-measurements and impairments)(a)

 

 

 

Operating profit before share of results from joint ventures and associates

1 426

1 938

-26%

Total operating profit including share of pre-tax

operating results from joint ventures and associates

1 552

2 043

-24%

Earnings for the period continuing operations before prior period taxation

743

1 163

-36%

Prior period taxation(d)

(148)

-

-

Earnings for the period continuing operations after prior period taxation

595

1 163

-49%

Earnings per share continuing operations

17.5c

34.4c

-49%

a) 'Business Performance' excludes discontinued operations and disposals, certain re-measurements and impairments as exclusion of these items provides a clear and consistent presentation of the underlying operating performance of the Group's ongoing business. During the first quarter, Total results included a pre-tax charge of

     $408 million (2010 $140 million credit) in relation to mark-to-market movements on long-term commodity contracts and economic hedges. For further explanation of

     Business Performance and the presentation of results from joint ventures and associates, see Presentation of Non-GAAP measures (page 8), note 1 (page 14) and

     note 3 (page 16). For further details of the items included in disposals, re-measurements and impairments, see note 2 (page 15). Unless otherwise stated, the results discussed in this release relate to BG Group's Business Performance.

b)  2010 results have been restated to reflect the presentation of the majority of the businesses that comprised the Power Generation segment as discontinued operations, see note 1 (page 14) and note 6 (page 18).

c)  Prior period taxation represents an additional charge of $195 million in respect of the revision of deferred tax balances at 1 January 2011 due to changes in UK taxation rates. This comprised a charge of $203 million as a result of the increase in North Sea taxation and a credit of $8 million as a result of a reduction in the UK taxation rate applicable outside the North Sea.

d)  In addition to (c) above, prior period taxation includes a $47 million credit which primarily relates to the impact of the increase in North Sea taxation on certain

     re-measurement balances.

 

Business Review - Group

 

First Quarter


 

Business Performance

2011
$m

 

2010   
Restated(a)
$m   

 

 

Revenue and other operating income

4 803

 

4 503

 

+7%

 

 

 

 

 

 

Total operating profit including share of pre-tax results from joint ventures and associates

 

 

 

 

 

Exploration and Production

1 258

 

1 192

 

+6%

Liquefied Natural Gas

570

 

633

 

-10%

Transmission and Distribution

145

 

140

 

+4%

Other activities

(8)

 

(10)

 

-20%

 

1 965

 

1 955

 

+1%

 

 

 

 

 

 

Net finance costs

(79)

 

(10)

 

+690%

Taxation for the period

(849)

 

(822)

 

+3%

Earnings for the period before prior period taxation

1 014

 

1 097

 

-8%

Prior period taxation

(195)

 

-

 

-

Earnings for the period after prior period taxation

819

 

1 097

 

-25%

 

 

 

 

 

 

Earnings per share (cents)

24.2c

 

32.5c

 

-26%

 

 

 

 

 

 

Cash generated by operations

1 799

 

2 508

 

-28%

 

 

 

 

 

 

Capital investment(b)

2 296

 

1 901

 

+21%

a) See note 1 (page 14).

b)  Includes capital investment relating to discontinued operations for the quarter of $nil (2010 $2 million).

First quarter

Revenue and other operating income increased by 7% to $4 803 million, reflecting the benefit of higher realised prices, partially offset by lower E&P production volumes.

Total operating profit of $1 965 million was 1% higher, as the increase in revenue and other operating income was offset by a higher exploration charge and lower profits from the LNG segment.

Cash generated by operations of $1 799 million was in line with fourth quarter 2010, but 28% lower than last year, principally reflecting changes in working capital associated with margin calls on the Group's hedged LNG contracts. The cash outflow associated with margin calls will reverse in future periods when the underlying LNG contracts settle.

Net finance costs of $79 million (2010 $10 million) included foreign exchange losses of $22 million (2010 $51 million gains).

The Group's effective tax rate (including BG Group's share of joint venture and associates' tax) for 2011 increased to 45% (2010 42%) primarily as a result of the recently announced change in UK North Sea taxation. This increase in UK taxation led to an additional charge of $265 million, consisting of a $62 million charge for the quarter in addition to a one-off tax charge of $203 million in respect of the revision of opening deferred tax balances. Taking into account this tax rate change, the Group's effective tax rate is expected to be 43% to 44% in the near term and trend downwards thereafter as more of the Group's profits are generated from outside of the North Sea.

As at 31 March 2011, the Group's net debt was $8 510 million, with an average maturity of around 9 years, and the gearing ratio was 23%. The increase in the gearing ratio has been largely driven by investment in the Group's major growth projects. In the quarter, capital expenditure was 21% higher at $2 296 million (including acquisitions of $319 million) and comprised investment in E&P ($1 826 million), LNG ($399 million) and T&D ($71 million).

Disposals, re-measurements and impairments - continuing operations

A post-tax charge of $223 million for the quarter (2010 $66 million credit) was recorded in respect of disposals,

re-measurements and impairments. This included a post-tax charge of $281 million (2010 $90 million credit) in relation to mark-to-market movements on long-term commodity contracts and economic hedges and a $47 million credit (2010 $nil) which primarily relates to the impact of the increase in North Sea taxation on certain re-measurement balances. For further information, see note 2 (page 15).

Board change

Fabio Barbosa was appointed to the Board as an Executive Director and as Chief Financial Officer, effective 31 March 2011. Fabio Barbosa succeeds Ashley Almanza who stood down from the Board on 31 March 2011.

 

Exploration and Production (E&P)

 

First Quarter

 

 

Business Performance

2011
$m

 

2010   
Restated(a)
$m   

 

 

Production volumes (mmboe)

58.2

 

61.3

 

-5%

 

 

 

 

 

 

Revenue and other operating income

2 510

 

2 294

 

+9%

 

 

 

 

 

 

Total operating profit before exploration charge

1 442

 

1 296

 

+11%

Exploration charge

(184)

 

(104)

 

+77%

Total operating profit

1 258

 

1 192

 

+6%

 

 

 

 

 

 

Capital investment

1 826

 

1 043

 

+75%

a) See note 1 (page 14).

Additional operating and financial data is given on page 21.

First quarter

Revenue and other operating income increased by 9% to $2 510 million, reflecting higher realised prices, partially offset by a 5% fall in production volumes. Total operating profit was 6% higher as a result of the increase in revenue and other operating income, partially offset by a higher quarterly exploration charge.

Production volumes were principally impacted by the shutdown, largely for elective maintenance, of the Everest and Lomond platforms in the UK North Sea. Everest and Lomond are now back onstream, with the restart of the Erskine satellite imminent.

Production in the quarter was also affected by civil unrest in North Africa. In Tunisia, the restart of the Hasdrubal plant was delayed, and in Egypt there was significant disruption to normal patterns of gas demand. As a consequence of delays already incurred and continuing unrest, BG Group expects development projects in Egypt's West Delta Deep Marine concession, scheduled for later in 2011, to be delayed by several months. In addition, production volumes in the quarter were affected by extreme weather conditions and extensive flooding in Queensland, Australia.

As a result of these factors, BG Group expects modest production growth in 2011, ahead of the strong ramp-up in production volumes which begins in 2012 and continues through the decade. The Group's goals for 2020 are also unaffected and are supported by significant progress with growth projects in Brazil, the USA and Australia, as well as further exploration and appraisal success in Brazil and Tanzania.

The Group's average realised gas price per produced therm increased by 6% to 39.45 cents, reflecting generally higher market prices and changes in the production mix.

The exploration charge increased to $184 million due to phasing of the exploration programme.

Unit operating expenditure increased to $7.99 per barrel of oil equivalent, principally reflecting the impact of the UK North Sea shutdown, changes in the production mix and higher commodity prices.

Capital investment of $1 826 million in the quarter comprised investment in the Americas ($777 million, including $263 million on acquisitions), Australia ($403 million), Europe and Central Asia ($355 million, including $56 million on acquisitions) and Africa, Middle East and Asia ($291 million).

First quarter business highlights

Brazil

There were significant advances in the quarter with the growth programme in Brazil. Production at the first permanent module on Lula Sul increased to some 25 000 barrels of oil per day (bopd), and construction of the next two Floating Production, Storage and Offloading (FPSO) modules advanced to around 50% complete, in line with plans. Tenders for the fourth and fifth FPSOs are expected in this quarter, and work to construct the hulls for eight further modules is also progressing to plan.

In April, the Extended Well Test on Lula North East commenced utilising the BW Cidade de São Vicente FPSO. Current gross production has reached 18 000 bopd, constrained by facilities.

In April, BG Group announced the conclusion of a Drill Stem Test (DST) on the Guará Norte well (3-SPS-69) in Block BM-S-9 in the Santos Basin. The DST confirmed high productivity of some 6 000 bopd of light oil (approx 30˚ API) with flow rates constrained by test facility capacity. Production potential from this well is estimated at around 50 000 bopd. The Guará Norte well was drilled at a water depth of 2 118 metres, approximately 305 kilometres (kms) off the coast of São Paulo state and around 15 kms northeast of the original discovery well.

In March, BG Group announced the successful completion of drilling on the Iara Horst well in the BM-S-11 concession in the Santos Basin. The well encountered good quality oil (28˚ API) in a thick reservoir section. Initial results from Iara Horst have demonstrated superior reservoir characteristics to the discovery well located around eight kms away. A DST, completed in April, confirmed reservoir quality and well productivity. Further evaluation activity continues.  

In February, BG Group announced a new discovery of oil (approximately 26˚API) in Block BM-S-10 in the Santos Basin. The discovery well, known as Macunaíma, is located in a water depth of 2 134 metres, approximately 244 kms off the coast of Rio de Janeiro state. Further evaluation of the discovery continues.

USA

BG Group's shale gas operations continued to gather momentum, with 46 wells spudded and 22 drilling rigs operating in the Haynesville shale during the quarter. Seven wells were drilled in the Marcellus shale.

Tanzania

In April, BG Group announced its third Tanzanian gas discovery. The Chaza-1 well is located in Block 1 approximately 18 kms offshore southern Tanzania in a water depth of around 950 metres. The discovery is some 200 kms south of BG Group's Pweza and Chewa discoveries. To date, approximately 5 000 square kilometres (sq kms) of new 3D seismic data has been acquired in Blocks 1, 3 and 4. It is intended that a second drilling campaign will commence in late 2011.

Kenya

In March, BG Group signed a Heads of Agreement with the Kenyan government to acquire a 40% equity interest in the exploration block L10A and a 45% interest in block L10B, subject to negotiation of Production Sharing Contracts. BG Group would operate both blocks.

India

In April, following India's New Exploration Licensing Policy (NELP) IX licensing round, a consortium led by BG Group (50% and operator), was identified as the qualifying bidder for an exploration block (MB-DWN-2010/1) offshore the west coast of India. The block is approximately 350 kms from the coast, covering an area of 7 963 sq kms and in water depths in excess of 2 000 metres. The award of the contract will be subject to final confirmation from the government of India and regulatory approvals.

Norway

In the 21st licensing round held in April, the Norwegian government awarded BG Group a 40% interest in and operatorship of licence PL599, located in the Norwegian Sea.

 

Liquefied Natural Gas (LNG)

 

First Quarter

 

 

Business Performance

2011
$m

 

2010   
Restated(a)
$m   

 

 

Revenue and other operating income

1 733

 

1 683

 

+3%

 

 

 

 

 

 

Total operating profit

 

 

 

 

 

Shipping and marketing

501

 

585

 

-14%

Liquefaction

87

 

83

 

+5%

Business development and other

(18)

 

(35)

 

-49%

 

570

 

633

 

-10%

 

 

 

 

 

 

Capital investment

399

 

804

 

-50%

a) See note 1 (page 14).

Additional operating and financial data is given on page 21.

First quarter

Total operating profit for the quarter was $570 million.

Shipping and marketing total operating profit of $501 million was in line with expectations but below first quarter 2010 results which benefited from strong weather-related gas demand.

BG Group's share of total operating profit from liquefaction activities increased by 5% to $87 million.

At the strategy presentation in February, BG Group published guidance that its LNG segment would achieve an operating profit for 2011 and 2012 of between $1.9 billion to $2.2 billion per annum; the outcome for 2011 is now expected to be towards the upper end of that range.

Capital investment of $399 million in the quarter included $366 million in Australia.

First quarter business highlights

Australia

In March, BG Group signed a sales agreement with Tokyo Gas Co. Ltd. (Tokyo Gas), concluding negotiations announced in March 2010 for the supply of 1.2 million tonnes of LNG a year for 20 years from 2015. Tokyo Gas will be supplied with LNG from the Queensland Curtis LNG (QCLNG) facility in Australia, and from the Group's global LNG portfolio. Tokyo Gas has acquired a 1.25% equity interest in the reserves and resources of certain BG Group tenements in the Walloons Fairway of the Surat Basin in Queensland. Tokyo Gas has also become a 2.5% equity investor in QCLNG Train 2, the second of two liquefaction trains which will form the first phase of the QCLNG development, which is planned to come onstream in 2014.

BG Group has signed a sales agreement with Chubu Electric Power Co. Inc, (Chubu Electric) concluding negotiations announced in October 2010 for the long-term supply of LNG. Under the agreement, Chubu Electric will purchase up to 122 cargoes over 21 years, starting in 2014. This will be supplied from BG Group's global LNG portfolio, including the QCLNG facility in Australia.

Progress continued with the QCLNG project during the quarter. Mitigation of the effects of the severe flooding, which has primarily impacted the drilling programme, is in hand with the 2014 first LNG date unchanged.

 

Transmission and Distribution (T&D)

 

First Quarter

 

 

Business Performance

2011
$m

 

2010   
Restated(a)
$m   

 

 

Revenue and other operating income

 

 

 

 

 

Comgás

547

 

519

 

+5%

Other

238

 

191

 

+25%

 

785

 

710

 

+11%

 

 

 

 

 

 

Total operating profit

 

 

 

 

 

Comgás

80

 

100

 

-20%

Other

65

 

40

 

+63%

 

145

 

140

 

+4%

 

 

 

 

 

 

Capital investment

71

 

52

 

+37%

a) See note 1 (page 14).

First quarter

Revenue and other operating income increased by 11% to $785 million, principally reflecting higher volumes at Comgás in Brazil and Gujarat Gas in India.

T&D total operating profit increased by 4% to $145 million.

At Comgás, $21 million was passed back to customers in the quarter compared with a $11 million net recovery of gas costs in 2010. At the end of the quarter, $116 million is due to be passed back to customers in future periods. Excluding the timing effect of gas cost recovery, total operating profit at Comgás was 13% higher, principally reflecting 8% higher volumes and favourable foreign exchange movements.

Capital investment mainly represents the development of the Comgás pipeline network.

First quarter business highlights

In April, BG Group signed and completed a Sale and Purchase Agreement (SPA) with its partners in Genting Sanyen Power in Malaysia for them to acquire the Group's 20% interest in the power plant for approximately $80 million.

In April, the SPA for the sale of BG Group's 40% interests in both the Santa Rita and San Lorenzo power stations in the Philippines was terminated as certain consents and waivers were not received. BG Group's holding in these assets will continue to be classified as held for sale and treated as discontinued operations.

 

Presentation of Non-GAAP measures

Business Performance

'Business Performance' excludes discontinued operations and disposals, certain re-measurements and impairments (see below) as exclusion of these items provides a clear and consistent presentation of the underlying operating performance of the Group's ongoing business.

BG Group uses commodity instruments to manage price exposures associated with its marketing and optimisation activity in the UK and USA. This activity enables the Group to take advantage of commodity price movements. It is considered more appropriate to include both unrealised and realised gains and losses arising from the

mark-to-market of derivatives associated with this activity in 'Business Performance'.

Disposals, certain re-measurements and impairments

BG Group's commercial arrangements for marketing gas include the use of long-term gas sales contracts. Whilst

the activity surrounding these contracts involves the physical delivery of gas, certain UK gas sales contracts are classified as derivatives under the rules of IAS 39 and are required to be measured at fair value at the balance sheet date. Unrealised gains and losses on these contracts reflect the comparison between current market gas prices and the actual prices to be realised under the gas sales contract and are disclosed separately as 'disposals,

re-measurements and impairments'.

BG Group also uses commodity instruments to manage certain price exposures in respect of optimising the timing and location of its physical gas and LNG sales commitments. These instruments are also required to be measured

at fair value at the balance sheet date under IAS 39 and where practical have been designated as formal hedges. However, IAS 39 does not always allow the matching of fair values to the economically hedged value of the related commodity, resulting in unrealised movements in fair value being recorded in the income statement. These movements in fair value, together with any unrealised gains and losses associated with discontinued hedge accounting relationships that continue to represent economic hedges, are disclosed separately as 'disposals,

re-measurements and impairments'.

BG Group also uses financial instruments, including derivatives, to manage foreign exchange and interest rate exposure. These instruments are required to be recognised at fair value or amortised cost on the balance sheet in accordance with IAS 39. Most of these instruments have been designated either as hedges of foreign exchange movements associated with the Group's net investments in foreign operations, or as hedges of interest rate risk. Where these instruments cannot be designated as hedges under IAS 39, unrealised movements in fair value are recorded in the income statement and disclosed separately as 'disposals, re-measurements and impairments'.

Realised gains and losses relating to the instruments referred to above are included in Business Performance. This presentation best reflects the underlying performance of the business since it distinguishes between the temporary timing differences associated with re-measurements under IAS 39 rules and actual realised gains and losses.

BG Group has also separately identified profits and losses associated with the disposal of non-current assets, and impairments of non-current assets as they require separate disclosure in order to provide a clearer understanding

of the results for the period.

For a reconciliation between the overall results and Business Performance and details of disposals,

re-measurements and impairments, see the consolidated income statement (page 10), note 2 (page 15) and note 3 (page 16).

Joint ventures and associates

Under IFRS, the results from jointly controlled entities (joint ventures) and associates, accounted for under the equity method, are required to be presented net of finance costs and tax on the face of the income statement. Given the relevance of these businesses within BG Group, the results of joint ventures and associates are presented before interest and tax, and after tax. This approach provides additional information on the source of BG Group's operating profits. For a reconciliation between operating profit and earnings including and excluding the results of joint ventures and associates, see note 3 (page 16).

Net borrowings/funds

BG Group provides a reconciliation of net borrowings/funds and an analysis of the amounts included within net borrowings/funds as this is an important liquidity measure for the Group.

 

 

Legal Notice

Certain statements included in these results contain forward-looking information concerning BG Group's strategy, operations, financial performance or condition, outlook, growth opportunities or circumstances in the countries, sectors or markets in which BG Group operates. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which are within BG Group's control or can be predicted by BG Group. Although BG Group believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from those set out in the forward-looking statements. For a detailed analysis of the factors that may affect our business, financial performance or results of operations, we urge you to look at the 'Risk Factors' included in BG Group plc's Annual Report and Accounts 2010. No part of these results constitutes, or shall be taken to constitute, an invitation or inducement to invest in BG Group plc or any other entity, and must not be relied upon in any way in connection with any investment decision. BG Group undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

 

Consolidated Income Statement

First Quarter

 

 

 

2011

 

2010 Restated(a)

 

 

 

Notes

Business    Perform-  
ance(b)
$m   

Disposals,   
re-measure-   
ments and     impairments    
(Note 2)(b)
$m   

Total
Result
$m


Business    Perform-  
ance(b)
$m   

Disposals,   
re-measure-   
ments and     impairments    
(Note 2)(b)
$m    

Total
Result
$m

 

 

Group revenue

 

4 793

-

4 793

 

4 358

-

4 358

 

 

Other operating income

2

10

(408)

(398)

 

145

140

285

 

 

Group revenue and other operating income

3

4 803

(408)

4 395

 

4 503

140

4 643

 

 

Operating costs

 

(2 964)

-

(2 964)

 

(2 653)

-

(2 653)

 

 

Profits and losses on disposal of non-current assets and impairments

2

-

(5)

(5)

 

-

(52)

(52)

 

 

Operating profit/(loss)(c)

3

1 839

(413)

1 426

 

1 850

88

1 938

 

 

Finance income

2, 4

19

74

93

 

65

19

84

 

 

Finance costs

2, 4

(84)

(69)

(153)

 

(62)

-

(62)

 

 

Share of post-tax results from joint ventures

and associates

3

79

-

79

 

66

-

66

 

 

Profit/(loss) before tax

 

1 853

(408)

1 445

 

1 919

107

2 026

 

 

Taxation

2, 5

(1 011)

185

(826)

 

(796)

(41)

(837)

 

 

Profit/(loss) for the period from continuing operations

3

842

(223)

619

 

1 123

66

1 189

 

 

Profit/(loss) for the period from discontinued operations

6

-

2

2

 

-

(203)

(203)

 

 

Profit/(loss) for the period

 

842

(221)

621

 

1 123

(137)

986

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

BG Group shareholders (earnings)

 

819

(222)

597(d)

 

1 097

(137)

960(d)

 

 

Non-controlling interest

 

23

1

24

 

26

-

26

 

 

 

 

842

(221)

621

 

1 123

(137)

986

 

 

Earnings per share continuing operations - basic

7

24.2c

(6.7c)

17.5c

 

32.5c

1.9c

34.4c

 

 

Earnings per share discontinued operations - basic

 

-

0.1c

0.1c

 

-

(6.0c)

(6.0c)

 

 

Earnings per share continuing operations - diluted

7

24.0c

(6.6c)

17.4c

 

32.3c

1.9c

34.2c

 

 

Earnings per share discontinued operations - diluted

 

-

0.1c

0.1c

 

-

(6.0c)

(6.0c)

 

 

Total operating profit/(loss) including share of pre-tax operating results from joint ventures and associates(e)

3

1 965

(413)

1 552

 

1 955

88

2 043

 

a) See note 1 (page 14).

b) See Presentation of Non-GAAP measures (page 8) for an explanation of results excluding disposals, certain re-measurements and impairments and presentation of the results of joint ventures and associates.

c) Operating profit/(loss) is before share of results from joint ventures and associates.

d)  Includes earnings from continuing operations of $595 million (2010 $1 163 million) and from discontinued operations of $2 million (2010 $(203) million).

e) This measurement is shown by BG Group as it is used as a means of measuring the underlying performance of the business.

 

Consolidated Statement of Comprehensive Income

 

First Quarter

 

2011
$m

2010
$m

Profit for the period

621

986

 

 

 

Hedge adjustments net of tax(a)

(344)

(165)

Fair value movements on 'available-for-sale' assets net of tax(b)

(1)

-

Currency translation adjustments

(39)

(70)

Other comprehensive (expense)/income, net of tax

(384)

(235)

 

 

 

Total comprehensive income for the period

237

751

 

 

 

 

Attributable to:

 

 

BG Group shareholders

212

724

Non-controlling interest

25

27

 

237

751

a)  Income tax relating to hedge adjustments is a $113 million credit for the quarter (2010 $73 million credit).

b) Income tax relating to fair value movements on 'available-for-sale' assets is a $1 million credit for the quarter (2010 $nil).

 

Consolidated Balance Sheet

 

As at
31 Mar
2011
$m

As at
31 Dec
2010
$m

As at
31 Mar
2010
$m

Assets

 

 

 

Non-current assets

 

 

 

Goodwill

847

820

758

Other intangible assets

7 618

7 193

8 101

Property, plant and equipment

29 536

28 263

21 509

Investments

2 875

2 824

2 797

Deferred tax assets

677

518

202

Trade and other receivables

205

206

84

Commodity contracts and other derivative financial instruments

290

283

592

 

42 048

40 107

34 043

Current assets

 



Inventories

605

655

640

Trade and other receivables

7 202

5 994

4 671

Current tax receivable

259

233

277

Commodity contracts and other derivative financial instruments

515

550

1 426

Cash and cash equivalents

1 142

2 533

803

 

9 723

9 965

7 817

Assets classified as held for sale

292

227

661

Total assets

52 063

50 299

42 521

 

 



Liabilities

 



Current liabilities

 



Borrowings

(1 295)

(1 258)

(302)

Trade and other payables

(4 811)

(4 388)

(3 930)

Current tax liabilities

(1 652)

(1 814)

(1 820)

Commodity contracts and other derivative financial instruments

(1 872)

(1 426)

(1 485)

 

(9 630)

(8 886)

(7 537)

Non-current liabilities

 



Borrowings

(8 514)

(8 446)

(5 320)

Trade and other payables

(75)

(72)

(65)

Commodity contracts and other derivative financial instruments

(1 234)

(901)

(614)

Deferred income tax liabilities

(3 386)

(3 134)

(3 144)

Retirement benefit obligations

(267)

(260)

(272)

Provisions for other liabilities and charges

(1 872)

(1 812)

(1 498)

 

(15 348)

(14 625)

(10 913)

Liabilities associated with assets classified as held for sale

(105)

(104)

(26)

Total liabilities

(25 083)

(23 615)

(18 476)

Net assets

26 980

26 684

24 045

Equity

 



Total shareholders' equity

26 599

26 328

23 698

Non-controlling interest in equity

381

356

347

Total equity

26 980

26 684

24 045

 

Consolidated Cash Flow Statement

 

First Quarter

 

2011   
$m   

2010   
$m   

Cash flows from operating activities

 

 

Profit before tax(a)

1 448

1 727

Share of post-tax results from joint ventures and associates

(79)

(79)

Depreciation of property, plant and equipment and amortisation

of intangible assets

540

526

Fair value movements in commodity based contracts

394

(121)

Profits and losses on disposal of non-current assets and impairments

4

377

Unsuccessful exploration expenditure written off

83

10

(Decrease)/increase in provisions

(38)

4

Finance income

(95)

(84)

Finance costs

153

63

Share-based payments

21

16

(Increase)/decrease in working capital

(632)

69

Cash generated by operations

1 799

2 508

Income taxes paid

(817)

(550)

Net cash inflow from operating activities

982

1 958

Cash flows from investing activities

 


Dividends received from joint ventures and associates

11

11

Proceeds from disposal of property, plant and equipment,

intangible assets and investments

98

-

Purchase of property, plant and equipment and intangible assets

(2 260)

(1 377)

Loans to and repayments from joint ventures and associates

(7)

2

Business combinations and investments in subsidiaries, joint ventures and associates

(96)

(47)

Net cash outflow from investing activities

(2 254)

(1 411)

Cash flows from financing activities

 


Net interest paid(b)

(56)

(47)

Dividends paid

(1)

(1)

Dividends paid to non-controlling interest

(2)

(1)

Net proceeds/(outflow) from issue and repayment of borrowings

8

(837)

Issue of shares

18

42

Purchase of own shares

(26)

(2)

Net cash outflow from financing activities

(59)

(846)

Net decrease in cash and cash equivalents

(1 331)

(299)

Cash and cash equivalents at beginning of period

2 551(d)

1 119

Effect of foreign exchange rate changes

(61)

(9)

Cash and cash equivalents at end of period(c)

1 159(d)

811(d)

a)  Includes profit/(loss) before tax from discontinued operations for the quarter of $3 million (2010 $(299) million).

b)  Includes capitalised interest for the quarter of $29 million (2010 $14 million).

c)  Cash and cash equivalents comprise cash and short-term liquid investments that are readily convertible to cash.

d)  The balance at 31 March 2011 includes cash and cash equivalents of $1 142 million (31 December 2010 $2 533 million; 31 March 2010 $803 million) and cash included within assets held for sale of $17 million (31 December 2010 $18 million; 31 March 2010 $8 million).

 

Notes

1. Basis of preparation

These primary statements are the unaudited interim consolidated financial statements ('the financial statements') of

BG Group plc for the quarter ended 31 March 2011. The financial statements do not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006, and should be read in conjunction with the Annual Report and Accounts for the year ended 31 December 2010 which have been prepared in accordance with IFRS as adopted by the EU, as they provide an update of previously reported information. The latest statutory accounts delivered to the registrar were for the year ended 31 December 2010 which were audited by BG Group's statutory auditors PricewaterhouseCoopers LLP and on which the Auditors' Report was unqualified and did not contain statements under Sections 498(2) or 498(3) of the Companies Act 2006. These financial statements are Interim Management Statements and have been prepared in accordance with the requirements of the Disclosure and Transparency Rules issued by the Financial Services Authority and the accounting policies set out in the 2010 Annual Report and Accounts.

 

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change.

From September 2010, following the decision to dispose of the majority of the Group's Power Generation segment, these operations have been treated as discontinued operations.  Power businesses that remain with BG Group have been allocated to other business segments based on their activity and location. A single amount is presented on the income statement for discontinued operations, comprising the post-tax results of these businesses and the post-tax profit or loss recognised on re-measurement to fair value less costs to sell and on disposal of the businesses. Comparative information has also been restated to reflect the presentation of discontinued operations as a separate line item.

Presentation of results

The presentation of BG Group's results separately identifies the effect of:

·  The re-measurement of certain financial instruments; and

·  Profits and losses on the disposal and impairment of non-current assets and businesses.

These items, which are detailed in note 2 to the financial statements (page 15), are excluded from Business Performance in order to provide readers with a clear and consistent presentation of the underlying operating performance of the Group's ongoing businesses.

New accounting standards and interpretations

A number of amendments to accounting standards issued by the IASB are applicable from 1 January 2011. They have not had a material impact on the Group's financial statements for the quarter ended 31 March 2011.

2. Disposals, re-measurements and impairments

 

First Quarter

 

2011
$m

2010
$m

Revenue and other operating income - re-measurements of commodity based contracts

(408)

140

Profits and losses on disposal of non-current assets and impairments

(5)

(52)

Net finance income - re-measurements of financial instruments

5

19

Taxation on disposals, re-measurements and impairments

185

(41)

 

(223)

66

Non-controlling interest

(1)

-

Impact on earnings - continuing operations

(224)

66

First quarter: Revenue and other operating income

Re-measurements included within revenue and other operating income amount to a charge of $408 million for the quarter (2010 $140 million credit), of which a charge of $51 million (2010 $42 million credit) represents non-cash mark-to-market movements on certain long-term UK gas contracts. Whilst the activity surrounding these contracts involves the physical delivery of gas, the contracts fall within the scope of IAS 39 and meet the definition of a derivative instrument. In addition, re-measurements include a $357 million charge for the quarter (2010 $98 million credit) representing unrealised mark-to-market movements associated with economic hedges.

First quarter: Disposals of non-current assets and impairments

During the first quarter, disposals and write-offs resulted in a pre-tax charge to the income statement of $5 million (post-tax $8 million credit).

Also during the quarter, BG Group committed to sell its investment in Genting Sanyen Power. Accordingly, as at 31 March 2011, this asset was classified as held for sale at its carrying value.

 

During the first quarter of 2010, BG Group committed to sell its Canadian E&P assets. Accordingly, these assets were reclassified as held for sale and revalued to the lower of their carrying amount and fair value less costs to sell. This resulted in a pre-tax impairment charge of $52 million (post-tax charge $37 million) against these assets.

First quarter: Net finance costs

Re-measurements presented in net finance costs include certain derivatives used to hedge foreign exchange and interest rate risk, partly offset by foreign exchange movements on certain borrowings.

First quarter: Taxation

During the first quarter, taxation includes a $47 million credit which primarily relates to the impact of the increase in North Sea taxation on re-measurement balances.

3. Segmental analysis

Profit for the period

Business Performance

Disposals,
re-measurements and impairments

Total Result

Analysed by operating segment

First Quarter

2011
$m

2010
$m

2011
$m

2010
$m

2011
$m

2010
$m

Group revenue

 

 

 

 

 

Exploration and Production

2 518

2 253

-

-

2 518

2 253

Liquefied Natural Gas

1 715

1 579

-

-

1 715

1 579

Transmission and Distribution

785

710

-

-

785

710

Less: intra-group sales

(225)

(184)

-

-

(225)

(184)

Group revenue

4 793

4 358

-

4 793

4 358

Other operating income(a)

10

145

(408)

140

(398)

285

Group revenue and other operating income

4 803

4 503

(408)

140

4 395

4 643

Operating profit/(loss) before share of results from joint ventures and associates

 

 

 

 

 

 

Exploration and Production

1 251

1 193

(70)

(30)

1 181

1 163

Liquefied Natural Gas

468

544

(343)

118

125

662

Transmission and Distribution

128

123

-

-

128

123

Other activities

(8)

(10)

-

-

(8)

(10)

 

1 839

1 850

(413)

88

1 426

1 938

Pre-tax share of operating results of joint ventures

and associates

 

 

 

 

 

 

Exploration and Production

7

(1)

-

-

7

(1)

Liquefied Natural Gas

102

89

-

-

102

89

Transmission and Distribution

17

17

-

-

17

17

 

126

105

-

-

126

105

Total operating profit/(loss)

 

 

 

 

 

Exploration and Production

1 258

1 192

(70)

(30)

1 188

1 162

Liquefied Natural Gas

570

633

(343)

118

227

751

Transmission and Distribution

145

140

-

-

145

140

Other activities

(8)

(10)

-

-

(8)

(10)

 

1 965

1 955

(413)

88

1 552

2 043

Net finance (costs)/income

 

 

 

 

 

Finance income

19

65

74

19

93

84

Finance costs

(84)

(62)

(69)

-

(153)

(62)

Share of joint ventures and associates

(14)

(13)

-

-

(14)

(13)

 

(79)

(10)

5

19

(74)

9

Taxation

 

 

 

 

 

Taxation

(1 011)

(796)

185

(41)

(826)

(837)

Share of joint ventures and associates

(33)

(26)

-

-

(33)

(26)

 

(1 044)

(822)

185

(41)

(859)

(863)

Profit/(loss) for the period from continuing operations

842

1 123

(223)

66

619

1 189

a)  Business Performance Other operating income is attributable to segments as follows: E&P $(8) million (2010 $41 million) and LNG $18 million (2010 $104 million).

3. Segmental analysis continued

 

Business Performance

Disposals,
re-measurements and impairments

Total Result

First Quarter

2011
$m

2010
$m

2011
$m

2010
$m

2011
$m

2010
$m

Total operating profit/(loss)

 

 

 

 

 

 

Exploration and Production

1 258

1 192

(70)

(30)

1 188

1 162

Liquefied Natural Gas

570

633

(343)

118

227

751

Transmission and Distribution

145

140

-

-

145

140

 

1 973

1 965

(413)

88

1 560

2 053

Other activities

(8)

(10)

-

-

(8)

(10)

 

1 965

1 955

(413)

88

1 552

2 043

Less: Pre-tax share of operating results

of joint ventures and associates

 

 

 

 

(126)

(105)

Add: Share of post-tax results from

joint ventures and associates

 

 

 

 

79

66

Net finance (costs)/income

 

 

 

 

(60)

22

Profit before tax

 

 

 

 

1 445

2 026

Taxation

 

 

 

 

(826)

(837)

Profit for the period from continuing operations

 

 

 

 

619

1 189

4. Net finance (costs)/income

 

First Quarter

 

2011
$m

2010
$m

Interest payable(a)

(73)

(33)

Interest on obligations under finance leases

(26)

(26)

Interest capitalised

29

14

Unwinding of discount on provisions(b)

(14)

(17)

Disposals, re-measurements and impairments(c)

(69)

-

Finance costs

(153)

(62)

Interest receivable(a)

19

65

Disposals, re-measurements and impairments(c)

74

19

Finance income

93

84

Net finance (costs)/income(d)

(60)

22

a)  In 2011, foreign exchange losses for the quarter of $22 million are included in interest payable. In 2010, foreign exchange gains for the quarter of $51 million are included in interest receivable.

b)  Relates to the unwinding of the discount on provisions and amounts in respect of pension obligations which represent the unwinding of discount on the plans' liabilities offset by the expected return on the plans' assets.

c)  Net finance income on disposals, re-measurements and impairments for the quarter of $5 million (2010 $19 million) is included in note 2 (page 15) and principally reflects certain derivatives used to hedge foreign exchange and interest rate risk, partly offset by foreign exchange movements on certain borrowings.

d)  Excludes Group share of net finance costs from joint ventures and associates for the quarter of $14 million (2010 $13 million).

5. Taxation

The tax charge for the quarter was as follows:

Business Performance

Disposals,
re-measurements and impairments

Total Result

 

First Quarter

2011
$m

2010
$m

2011
$m

2010
$m

2011
$m

2010
$m

Tax charge/(credit) for the quarter

816

796

(138)

41

678

837

Prior period taxation(a)

195

-

(47)

-

148

-

Total excluding share of taxation from joint ventures and associates

1 011

796

(185)

41

826

837

Share of taxation from joint ventures and associates

33

26

-

-

33

26

Total including share of taxation from joint ventures and associates

1 044

822

(185)

41

859

863

Business Performance taxation for the first quarter, excluding prior period taxation but including share of taxation from joint ventures and associates, was $849 million (2010 $822 million).

a)  Prior period taxation relates to the revision of deferred tax balances at 1 January 2011, primarily as a result of the increase in North Sea taxation announced in March 2011.

6. Discontinued operations

The post-tax profit/loss of the businesses comprising discontinued operations for the first quarter, including profits and losses on disposals and impairments, was a $2 million profit (2010 $203 million loss).

During the first quarter of 2010, BG Group signed a Sale and Purchase Agreement for the sale of its power plants in the USA and its investment in the Seabank power plant in the UK. Accordingly, these assets were reclassified as held for sale and revalued to the lower of their carrying amount and fair value less costs to sell. This resulted in a pre-tax impairment charge of $325 million (post-tax charge $226 million) against the Group's US power plants.

7. Earnings per ordinary share - continuing operations

 

First Quarter

 

2011

2010

 


$m

cents per share

$m

cents per share

Earnings - continuing operations excluding disposals, re-measurements and impairments

819

24.2

1 097

32.5

Disposals, re-measurements

and impairments (after tax and non-controlling interest)

(224)

(6.7)

66

1.9

Earnings - continuing operations

595

17.5

1 163

34.4

Basic earnings per share calculations in 2011 are based on the weighted average number of shares in issue of

3 387 million for the quarter.

The earnings figure used to calculate diluted earnings per ordinary share is the same as that used to calculate earnings per ordinary share given above, divided by 3 410 million for the quarter, being the weighted average number of ordinary shares in issue during the period as adjusted for dilutive equity instruments.

8. Reconciliation of net borrowings(a) - First Quarter

 

$m

Net borrowings as at 31 December 2010

(6 973)

Net decrease in cash and cash equivalents(b)

(1 330)

Cash inflow from changes in borrowings

(8)

Foreign exchange and other re-measurements

(199)

Net borrowings as at 31 March 2011(c)

(8 510)

Net borrowings attributable to Comgás were $871 million (31 December 2010 $798 million).

As at 31 March 2011, BG Group's share of the net borrowings in joint ventures and associates amounted to approximately $1.8 billion, including BG Group shareholder loans of approximately $1.4 billion. These net borrowings are included in BG Group's share of the net assets in joint ventures and associates which are consolidated in BG Group's accounts.

a)  Net borrowings/funds are defined on page 24.

b)  Excludes $1 million relating to a decrease in cash and cash equivalents classified as held for sale.

c)  Net borrowings comprise:

 

As at
31 Mar
2011
$m

As at
31 Dec
2010
$m

Amounts receivable/(due) within one year

 

 

Cash and cash equivalents

1 142

2 533

Overdrafts, loans and finance leases

(1 295)

(1 258)

Derivative financial instruments(d)

(38)

37

 

(191)

1 312

Amounts receivable/(due) after more than one year

 

 

Loans and finance leases(e)

(8 379)

(8 312)

Derivative financial instruments(d)

60

27

 

(8 319)

(8 285)

Net borrowings

(8 510)

(6 973)

d)  These items are included within commodity contracts and other derivative financial instrument balances on the balance sheet.

e)  Includes finance lease receivable of $135 million (2010 $134 million) included within non-current assets on the balance sheet.

9. Capital investment: geographical analysis

 

First Quarter

 

2011   
$m   

2010   
$m   

Europe and Central Asia

356  

278  

Americas and Global LNG

875  

1 131  

Africa, Middle East and Asia

296  

250  

Australia

769  

242  

 

2 296(a)

1 901(a)

a)  Includes capital investment relating to discontinued operations for the quarter of $nil (2010 $2 million).

10. Quarterly information: earnings and earnings per share

 

2011
$m

2010
$m

2011
cents

2010
cents

First quarter

 

 

 

 

   Total Result - continuing operations

595

1 163

17.5

34.4

   Total Result - discontinued operations

2

(203)

0.1

(6.0)

   Business Performance

819

1 097

24.2

32.5

Second quarter

 


 


   Total Result - continuing operations

 

439

 

13.0

   Total Result - discontinued operations

 

163

 

4.8

   Business Performance

 

882

 

26.1

Third quarter

 


 


   Total Result - continuing operations

 

876

 

25.9

   Total Result - discontinued operations

 

(27)

 

(0.8)

   Business Performance

 

978

 

28.9

Fourth quarter

 


 


   Total Result - continuing operations

 

905

 

26.7

   Total Result - discontinued operations

 

35

 

1.1

   Business Performance

 

1 056

 

31.2

Full year

 


 


   Total Result - continuing operations

 

3 383

 

100.1

   Total Result - discontinued operations

 

(32)

 

(1.0)

   Business Performance

 

4 013

 

118.7

 

Supplementary information: Operating and financial data

 

First Quarter

Fourth
 Quarter

 

2011

2010

2010

Production volumes (mmboe)

 

 

 

Oil

6.6

7.9

7.6

Liquids

8.7

9.0

8.9

Gas

42.9

44.4

44.2

Total

58.2

61.3

60.7

 

 



Production volumes (boed in thousands)

 



Oil

73

88

83

Liquids

97

100

97

Gas

477

493

480

Total

647

681

660

 

 



Average realised oil price per barrel

$108.58

$76.45

$82.69

 

 



Average realised liquids price per barrel

$83.32

$62.81

$67.52

 

 



Average realised UK gas price per produced therm

67.32c

65.22c

69.25c

(42.37p)

(41.00p)

(43.78p)

 

 



Average realised International gas price per produced therm

36.00c

32.64c

32.81c

 

 



Average realised gas price per produced therm

39.45c

37.37c

37.61c

 

 



Lifting costs per boe

$5.24

$4.48

$4.89

 

 



Operating expenditure per boe

$7.99

$6.95

$7.32

 

 



Development expenditure (including acquisitions) ($m)

1 195

607

1 432

 

 



Gross exploration expenditure ($m)

 



Capitalised expenditure (including acquisitions)

514

341

360

Other expenditure

101

94

99

Total

615

435

459

 

 



Exploration expenditure charge ($m)

 



Capitalised expenditure written off

83

10

63

Other expenditure

101

94

99

Total

184

104

162

 

 



E&P capital investment ($m)(a)

 



Europe and Central Asia

355

271

225

Americas

777

401

844

Africa, Middle East and Asia

291

243

521

Australia

403

128

481

Total

1 826

1 043

2 071

a) E&P capital investment includes acquisitions for the quarter of $319 million (first quarter 2010 $nil; fourth quarter 2010 $nil).

 

Supplementary information: Operating and financial data continued

 

First Quarter

Fourth
 Quarter

 

2011

2010

2010

Depreciation and amortisation ($m)

 



Exploration and Production

454

437

483

Other

86

89

81

Total

540

526

564

 

 



LNG cargoes

 



North America

8

15

7

Asia

21

24

18

Europe

11

6

7

South America

10

6

16

Other

-

4

-

Total

50

55

48

 

 



LNG managed volumes (Tbtu)

160.5

173.6

157.1

Historical information

 

First
 Quarter


First
 Quarter

Second Quarter

Third
 Quarter

Fourth
 Quarter

Full Year

 

2011

 

2010

E&P capital investment ($m)(a)








Europe and Central Asia

355


271

293

288

225

1 077

Americas

777


401

1 669

611

844

3 525

Africa, Middle East and Asia

291


243

297

326

521

1 387

Australia

403


128

175

319

481

1 103

Total

1 826


1 043

2 434

1 544

2 071

7 092

a) Includes acquisitions for the first quarter 2011 of $319 million (first quarter 2010 $nil; second quarter 2010 $1 233 million; third quarter 2010 $nil; fourth quarter 2010 $nil and full year 2010 $1 233 million).









LNG capital investment ($m)








Europe and Central Asia

-


5

-

2

-

7

Americas

33


685

111

84

33

913

Africa, Middle East and Asia

-


-

-

-

4

4

Australia

366


114

143

387

300

944

Total

399


804

254

473

337

1 868

 

 







T&D and other capital investment ($m)(b)

 







Europe and Central Asia

1


-

-

1

2

3

Americas

65


45

50

58

77

230

Africa, Middle East and Asia

5


7

7

2

10

26

Total

71


52

57

61

89

259

b) Includes capital investment relating to discontinued operations for the first quarter 2011 of $nil (first quarter 2010 $2 million; second quarter 2010 $25 million; third quarter 2010 $1 million; fourth quarter 2010 $nil and full year 2010 $28 million).

 

Supplementary information: Operating and financial data continued

Historical information continued

 

First
 Quarter


First
 Quarter

Second Quarter

Third
 Quarter

Fourth
 Quarter

Full Year

 

2011

 

2010

Depreciation and amortisation ($m)








Exploration and Production

454


437

430

476

483

1 826

Other

86


89

83

76

81

329

Total

540


526

513

552

564

2 155


 







LNG cargoes

 







North America

8


15

22

13

7

57

Asia

21


24

14

20

18

76

Europe

11


6

7

9

7

29

South America

10


6

9

14

16

45

Other

-


4

1

3

-

8

Total

50


55

53

59

48

215

Price and exchange rate sensitivity

BG Group's exposure to the oil price varies according to a number of factors including the mix of production and sales. Management estimates that, other factors being constant and assuming a constant relationship between commodity prices, a $1.00 rise (or fall) in the Brent oil price would increase (or decrease) E&P business operating profit in 2011 by approximately $70 million to $100 million.

Management estimates that in 2011, other factors being constant, a 10 cent strengthening (or weakening) in the US Dollar/Pounds Sterling exchange rate would increase (or decrease) operating profit by approximately $10 million to

$30 million.

 

Glossary

 

In BG Group's results some or all of the following definitions are used:

 

 

API

The specific gravity or density of oil expressed in terms of a scale devised by the American Petroleum Institute

 

 

bboe

billion barrels of oil equivalent

 

 

bcf

billion cubic feet

 

 

bcfd

billion cubic feet per day

 

 

boe

barrels of oil equivalent

 

 

boed

barrels of oil equivalent per day

 

 

bopd

barrels of oil per day

 

 

CAGR

compound annual growth rate

 

 

Capital investment

Comprises expenditure on property, plant and equipment, other intangible assets and investments, including business combinations

 

 

E&P

Exploration and Production

 

 

FPSO

floating production, storage and offloading system

 

 

Gearing ratio

net borrowings as a percentage of total shareholders' funds (excluding the re-measurement

of commodity financial instruments and associated deferred tax) plus net borrowings

 

 

IAS

International Accounting Standard issued by the IASB

 

 

IASB

International Accounting Standards Board

 

 

IFRIC

International Financial Reporting Interpretations Committee

 

 

IFRS

International Financial Reporting Standards

 

 

kboed

thousand barrels of oil equivalent per day

 

 

LNG

Liquefied Natural Gas

 

 

Managed volumes

Comprises all LNG volumes contracted for purchase and having related revenue and other

operating income recognised in the applicable period

 

 

m

million

 

 

mmboe

million barrels of oil equivalent

 

 

mmbtu

million british thermal units

 

 

mmcfd

million cubic feet per day

 

 

mmcmd

million cubic metres per day

 

 

mmscfd

million standard cubic feet per day

 

 

mmscm

million standard cubic metres

 

 

mmscmd

million standard cubic metres per day

 

 

mtpa

million tonnes per annum

 

 

Net borrowings/   funds

Comprise cash, current asset investments, finance lease liabilities/assets, currency and interest rate derivative financial instruments and short and long-term borrowings

 

 

PJ

Petajoule (1 petajoule = 0.943 bcf)

 

 

PSC

production sharing contract

 

 

SEC

US Securities and Exchange Commission

 

 

T&D

Transmission and Distribution

 

 

Tbtu

trillion british thermal units

 

 

tcf

trillion cubic feet

 

 

Total operating profit

Group operating profit plus share of pre-tax operating results of joint ventures and associates

 

 

UKCS

United Kingdom Continental Shelf

 

 

Unit operating expenditure per boe

Production costs and royalties incurred over the period divided by the net production for the period. This measure does not include the impact of depreciation and amortisation costs and exploration costs as they are not considered to be costs associated with the operation of producing assets

 

 

Unit lifting costs per boe

'Unit operating expenditure' as defined above, excluding royalty, tariff and insurance costs incurred over the period divided by the net production for the period

 

 

 

Enquiries

 

 

Enquiries relating to BG Group's results, business

and financial position should be made to:

General enquiries about shareholder matters
should be made to:

 

Investor Relations Department

BG Group plc

Thames Valley Park Drive

Reading

Berkshire

RG6 1PT

Equiniti Limited

Aspect House

Spencer Road

Lancing

West Sussex

BN99 6DA

 

Tel: 0118 929 3025

e-mail: invrel@bg-group.com

Tel: 0871 384 2064

e-mail: bg@equiniti.com

 

 

 

 

Media Enquiries:

Neil Burrows: 0118 929 2462

 

 

High resolution images are available at www.vismedia.co.uk

 

 

 

 

 

BG Group is listed on the US over-the-counter market known

as the International OTCQX. Enquiries should be made to:

 

 

OTC Markets Group Inc.

304 Hudson Street

3rd Floor

New York, NY 10013

USA

 

 

e-mail: info@otcmarkets.com

 

 

 

 

 

Financial calendar

 

 

Payment of 2010 final dividend

20 May 2011

 

Announcement of 2011 second quarter and half year results

26 July 2011

 

 

 

 

BG Group plc website: www.bg-group.com

 

 

 

 

 

Registered office

100 Thames Valley Park Drive, Reading RG6 1PT

Registered in England No. 3690065

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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