BG Group says Brazil and Oz projects are 'immediate priority'

FTSE 100-listed natural gas provider BG Group has reported that its immediate priority going forwards is the delivery of its 2013 milestones and growth projects in Australia and Brazil.

FTSE 100-listed natural gas provider BG Group has reported that its immediate priority going forwards is the delivery of its 2013 milestones and growth projects in Australia and Brazil.

In a strategic update issued on Tuesday, the group, which has assets in South America, Europe, the Caribbean, North Africa and the US, said that it was making "good progress" and expected to see "significant volume and cash flow growth" in 2014 and 2015.

It added that it would continue to grow exploration spend over the next three years to $1.8bn per annum and would manage the portfolio more actively, monetising assets at different stages in their life cycle and bringing in partners to accelerate the value delivery.

The group reaffirmed its 2013 group production range of 630 to 660 thousand barrels of oil equivalent per day (kboed) excluding portfolio changes and further forecast that the 2015 group production range would be 775 to 825 kboed excluding portfolio changes.

It also forecast that the 2013-2015 average production range from base assets would be expected to be 530 to 580 kboed.

Average capital expenditure of $2-3bn per annum is expected to go on base assets between 2013 and 2015.

Going forwards, the group said that dividends would rise broadly in line with underlying earnings growth with cash returned to shareholders in the medium term.

Chris Finlayson, Chief Executive of BG Group, 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 [liquefied natural gas]. We are big enough to explore the best frontier acreage but small enough to be agile - valuable attributes, which I intend to keep".

MF

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
China owns a lot more gold than it’s letting on – and here’s why
Gold

China owns a lot more gold than it’s letting on – and here’s why

In a world awash with money-printing, a currency backed by gold would have great credibility. And China – with designs on the yuan becoming the world’…
21 Apr 2021
Why investment advice could be about to get a lot cheaper
Investment strategy

Why investment advice could be about to get a lot cheaper

Vanguard, the world’s second-biggest asset manager, is launching its own cut-price financial advice service. It’s something the industry badly needs, …
20 Apr 2021