BG. Gas prices over 14% up recently with more to come - global LNG expanding and further exploration rights --- about to break out.

http://www.moneyam.com/action/news/showArticle?id=989336

dikytree.

1st Quarter Results.


First Quarter Key Points


· Total operating profit up 21% to $2.4 billion

· Cash generated by operations up 47% to $2.6 billion

· LNG operating profit up 42% to $812 million

· E&P production up 5% to 60.9 mmboe

· New projects onstream in Norway, Thailand, Bolivia and Egypt

· Fourth gas discovery in Tanzania, mean total gross recoverable resources approaching 7 tcf

· Execution of funding plan on track, with disposals and new funding agreements announced

Barclays comment:
"Market expectations were clearly high ahead of BG’s 1Q figures, with the stock trading at an all-time sector relative high. The numbers today are fine if not blow-out. Adjusted net income at $1.27bn, was up 25% y/y vs. a sector average increase of 10%. Although in line with our own expectations the figures were 5% above consensus – albeit we have seen an average 2% beat to consensus from the Pan European group this quarter. Underlying volumes were up 3.5% y/y vs. 1% growth from Shell and a 3% decline from BP. The group is also making progress on its target to sell down $5bn of assets over the next few years, with today’s announcement of the $1.8bn disposal of Comgas. We are carrying this asset at $1.3bn so the premium is worth an incremental 10p/share. LNG continues to be a strong feature for the group, with profits up 42% y/y at $812m. This is in line with our expectations and it is reassuring that in 1Q alone the group has already delivered 30% of the mid point of the $2.6-2.8bn target set in February. However, markets may have hoped for a bigger beat in this line: although Shell’s integrated gas business includes GtL as well as LNG, that company’s 33% q/q uplift in profits makes BG’s q/q 2% fall look a little downbeat. The other cautionary note in on spending. BG is now lifting its capex guidance for 2012/13 by $1.5bn. This reflects higher costs on the key QGC coal-bed methane project in Australia and is not entirely unexpected given the strength in the Australian dollar and service sector bottlenecks in the region. On the new spending estimates BG’s capex is set to rise 12% this year and 4% next vs a peer group at 6% and 5% in the same years. We would see this as a small price to pay for the 13% pa production growth we see the group delivering 2011-2015. We rate BG 1-OW with a price target of 1850p. "

Fifth consecutive Tanzania gas discovery

29 May 2012

Definitive binding agreement signed for sale of Comgas stake

BG Group today announced it had signed a definitive binding agreement with Cosan S.A. Industria e Comercio (Cosan) for the sale of the Group's entire 60.1% holding in Comgas for Brazilian reais 3.4 billion in cash, or approximately $1.7 billion at current exchange rates. In addition, the transaction will reduce debt on the BG Group balance sheet by some $1.1 billion.

The definitive agreement follows BG Group's announcement in early May that it had signed a memorandum of understanding with Cosan for the sale of the Group's interest in Comgas, Brazil's largest gas distribution company.

BG Group Chief Executive Sir Frank Chapman said: "This transaction, when completed, will release capital of around $2.8 billion which, along with other planned divestments, represents significant progress towards our two-year goal to release $5 billion of capital from BG Group's balance sheet."

The transaction, which is subject to regulatory approval, is likely to complete by the end of 2012.

Further, BG Group and Cosan have agreed, when the transaction is completed, to co-operate on evaluating and developing gas supply options in Brazil. The co-operation agreement reflects BG Group's long-term commitment to Brazil, where the Group and its partners are developing world-class oil discoveries offshore in the Santos Basin. Shareholders in Comgas are BG Group (60.1%) and Shell (18.1%) with the remainder held via the public through a listing on the Sao Paulo stock exchange.

-ends-

Coming up for divi date in early august, I think.

Yes - date still provisional BG Calendar

Credit Suisse has downgraded the oil and gas giant from outperform to neutral and reduced its target price from 1,660p to 1,500p.

Approval of key contracts and additional FPSO unit tender, offshore Brazil

BG Group, and partners, have approved the signature of contracts totaling $4.5 billion for the construction of the first six topside modules and integration packages for the eight domestic floating production, storage and offloading units (FPSOs) to be used on the Santos Basin pre-salt projects in blocks BM-S-9 and BM-S-11, offshore Brazil.

Ex-divi 1st Aug '12.

Half Year Report


Second Quarter Key Points

· Cash flow from operations up 21% to $3 121 million, earnings down 4% to $1 073 million

· E&P production up 4% to 61.3 mmboe

· Interim dividend per share increased 10% to 11.88 cents (7.64 pence)

· $1.3 billion non-cash post-tax impairment on US shale gas assets, based on lower price premise(a)

· 2012 production exit rate lowered from 750 to 720 kboed, driven by Elgin, Jasmine and USA

· 2012 LNG total operating profit now expected at the upper end of $2.6 billion to $2.8 billion range

· Continuing good progress in execution of the funding plan; gearing reduced to 24.9%

· $4.5 billion FPSO topside contracts approved in Brazil; tenders for additional FPSO announced

· Latest contract awards and drilling improvements affirm BG Group's capex estimates for Brazil

· Fifth successive gas discovery in Tanzania

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1180 visited for the 2nd time in 4 weeks.

Good support at 1200p though and possible increase up to the divi date? Will await broker notes.

The only one I've seen (so far) is Oriel - reiterating their BUY.

Nice pre-divi surge. Almost tempted to take profit and get back in after ex-divi tomorrow.

Nice recovery and the dividend is almost covered today (11.88p) - well held Harry - I'm not in atm.

Not that interesting as for every seller there should be a buyer but "41m shares in Bg. currently on offer at £12.25".

Management update - Fabio Barbosa granted leave of absence

BG Group today announced that Chief Financial Officer (CFO), Fabio Barbosa has been granted leave of absence in order to undergo medical treatment in Brazil for a recently diagnosed condition.

The power of the 8% price hike.