(BG-.L) BG Group PLC Buy/Sell

Ah you cant beat a Brazillian..........boom,boom

---

More |  View thread (2) |  Respond |  Login to Vote up |  Login to Vote down

This news story is great - it's not stating anything that the other articles haven't..but check out the photo that they have used to illustrate the potential in Brazil!

http://www.upstreamonline.com/live/article199347.ece

haha.

---

More |  View thread (2) |  Respond |  Login to Vote up |  Login to Vote down

BG Group

£11.31 -6.5p

Questor says BUY

There has been much debate over whether the world is seeing a glut of gas. Proponents of this argument say gas prices will stay low for a very long time and this is the reason natural gas prices have not started rising alongside the oil price.

The International Energy Agency (IEA) said that lower industrial activity caused by the gloomy economy and increasing production from unconventional supplies such as US shale gas means supply outstrips demand until 2015.

However, Alexander Medvedev, Gazprom's deputy chairman, waded into the argument this week, dismissing the IEA's comment. He insisted the current oversupply could start to disappear by 2011. Questor also suspects that the supply-side fears are being overblown.

Of course, all of this debate has meant that shares in companies such as BG Group have been out of favour. However, Questor would regard any weakness as a buy opportunity. Most of the company's new capacity in LNG will not come on stream until 2014 – so even if the glut of gas continues for a few years, this should not be an issue for BG.

There was some more good news from BG yesterday. The company said that a test well in Brazil showed record productivity. The tests were on the Iracema appraisal well in the Tupi area.

BG Group owns 25pc of the venture, with Petrobras having 65pc and GALP 10pc.

The Iracema well confirmed the presence of an excellent quality light oil bearing reservoir, 33km north-west of the original Tupi discovery well.

The discoveries in the Santos Basin continue to look significant and news from the area has been good. The high flow rates mean that the costs of extracting the hydrocarbons from the deep offshore area are lower.

The shares are trading on a December 2009 earnings multiple of 16.7, which could be regarded as high, but this falls to 14.7 next year, and then drops to 13.1 in 2011. The yield, at 1pc, is unimpressive.

The shares were recommended on January 5 at £10.00 and they are now 11pc ahead, compared with a market rise of 16pc. The stance on the shares remains buy.

---

More |  View thread (1) |  Respond |  Login to Vote up |  Login to Vote down

19-Nov-09
IC VIEW:
At 1,150p, BG Group is comfortably ahead of our summer buy recommendation (1,069p, 29 July 2009). That recommendation was explicitly based on the Brazilian developments coming to fruition over the next few years, which we think will mark another step-change in the development of this remarkable company. Any short-term commodity price weakness, or rise in risk-aversion, might result in a pull-back - but for the longer term, the Brazilian developments plus other extremely attractive aspects of its global portfolio, will see BG Group worth significantly more than it is now. Still a high-quality, long-term buy.

http://www.investorschronicle.co.uk/Companies/ByEvent/TradingNews/Analysis/article/20091119/fde95eb8-d500-11de-8eea-00144f2af8e8/BG-adds-gas-to-Brazilian-cocktail.jsp

---

More |  View thread (1) |  Respond |  Login to Vote up |  Login to Vote down

BG Group

£11.31 -6.5p

Questor says BUY

There has been much debate over whether the world is seeing a glut of gas. Proponents of this argument say gas prices will stay low for a very long time and this is the reason natural gas prices have not started rising alongside the oil price.

The International Energy Agency (IEA) said that lower industrial activity caused by the gloomy economy and increasing production from unconventional supplies such as US shale gas means supply outstrips demand until 2015.

However, Alexander Medvedev, Gazprom's deputy chairman, waded into the argument this week, dismissing the IEA's comment. He insisted the current oversupply could start to disappear by 2011. Questor also suspects that the supply-side fears are being overblown.

Of course, all of this debate has meant that shares in companies such as BG Group have been out of favour. However, Questor would regard any weakness as a buy opportunity. Most of the company's new capacity in LNG will not come on stream until 2014 – so even if the glut of gas continues for a few years, this should not be an issue for BG.

There was some more good news from BG yesterday. The company said that a test well in Brazil showed record productivity. The tests were on the Iracema appraisal well in the Tupi area.

BG Group owns 25pc of the venture, with Petrobras having 65pc and GALP 10pc.

The Iracema well confirmed the presence of an excellent quality light oil bearing reservoir, 33km north-west of the original Tupi discovery well.

The discoveries in the Santos Basin continue to look significant and news from the area has been good. The high flow rates mean that the costs of extracting the hydrocarbons from the deep offshore area are lower.

The shares are trading on a December 2009 earnings multiple of 16.7, which could be regarded as high, but this falls to 14.7 next year, and then drops to 13.1 in 2011. The yield, at 1pc, is unimpressive.

The shares were recommended on January 5 at £10.00 and they are now 11pc ahead, compared with a market rise of 16pc. The stance on the shares remains buy.

---

More |  View thread (2) |  Respond |  Login to Vote up |  Login to Vote down

another news release today

---

More |  View thread (1) |  Respond |  Login to Vote up |  Login to Vote down

Another RNS just come in at 17.13 see this page 'BG news'

ups

---

More |  View thread (1) |  Respond |  Login to Vote up |  Login to Vote down

see RNS this morning, more good news Id say.
ups

---

More |  View thread (1) |  Respond |  Login to Vote up |  Login to Vote down

It might be a concern I would imagine for all Gas and Oil producers not just BG. But on the upside, BG is not just about Gas, its Oil interests are truly spectacular, taking into account Guara, Santos Basin and Carioca the company said recently thats its producing 56 million boepd and this is rising ! I just think that as world comes out of economic crash which is starting to happen then China and India will take every drop of oil and gas it can get its hands on. Just my opinion but probably my glass of beer is half FULL today

ups

---

More |  View thread (1) |  Respond |  Login to Vote up |  Login to Vote down

Does anyone agree that given the present oversupply situation and the IEA forecasting no end to this before 2015 (probably exacerbated by the commercial viability of shale gas) BG shares are no longer looking too attractive and are likely to continue underperforming the market?

---

More |  View thread (2) |  Respond |  Login to Vote up |  Login to Vote down

Wealth4u, thanks for that, will investigate.

Cheers,

BD

---

More |  View thread (5) |  Respond |  Login to Vote up |  Login to Vote down

The following cau from the Trilliant Inc website:

Trilliant Wins Contract with Centrica's British Gas for Smart Communications Software System
Redwood City, CA – October 27, 2009 – Trilliant Incorporated, a leader in delivering Smart Grid solutions that enhance energy efficiency, utility operations and renewable resource integration, today announced that it is to provide communications headend software to British Gas as part of the first phase of the utility’s smart metering activities.

British Gas, part of Centrica plc and the United Kingdom's leading energy and home services provider, will use UnitySuite™, Trilliant's enterprise communications management software, for smart electricity and gas meters, home energy displays, thermostats, and other energy management devices.

"We are proud to be selected by one of the largest utilities in the world," said Andy White, President and CEO of Trilliant. "This continues our market expansion in Europe and we look forward to expanding our role in the United Kingdom where the government plans to replace 47 million existing domestic gas and electricity meters with smart meters by 2020."

"Europe will be one of the fastest-growing Smart Grid markets over the next several years," according to Clint Wheelock, Managing Director at Pike Research. "The competitive landscape for Smart Grid technology providers in Europe is still very fluid, so this win represents an important early foothold in the region for Trilliant."

As the smart device and communications landscape evolves, UnitySuite has the capacity to provide a platform that is flexible and scalable and which can support a wide variety of devices and networks simultaneously.

Trilliant expects to start the deployment for British Gas in December 2009.

---

More |  View thread (5) |  Respond |  Login to Vote up |  Login to Vote down

Not sure about the meters but Skyworks Solutions is a leading player in the chip set needed for smart grids and meters.

---

More |  View thread (5) |  Respond |  Login to Vote up |  Login to Vote down

i think you mean Centrica. BG Group does to distribute energy in the UK.

Thanks

---

More |  View thread (5) |  Respond |  Login to Vote up |  Login to Vote down

I understand that BG will use Trilliant (a US co.) smart metering comms software. Does anyone know will supply the physical smart meters?

BD

---

More |  View thread (5) |  Respond |  Login to Vote up |  Login to Vote down

I just found this about BG Group
http://uk-analyst.com/shop/page-article/action-article.show/id-130001182

---

More |  View thread (6) |  Respond |  Login to Vote up |  Login to Vote down

You are forgetting the income from the new facility that should begin from late 2010. at $55 per barrel equivalent I estimate about a £1bn extra profit a year by 2020, work out the profit at $70, 80$ or $100. If the price stays low they will just slow down the investment.

---

More |  View thread (6) |  Respond |  Login to Vote up |  Login to Vote down

My apologies the article said the £20 Billion would be over 20 years. Thier retained profit last year was £2.8 Billion but that was the first time they got over £2Billion. So I suppose that if they could keep up profits of over £2Billoin they could just do it but it is an awful lot of eggs in one Brazillian basket. Brazil carries quite a large soveriegn risk as its history has been very dubious. Obviously there could also be some bank borrowing but they are unlikely to get that at the very low interest that they are paying as a dividend. So a 50% discounted rights issue could look very attractive. Worrying

---

More |  View thread (6) |  Respond |  Login to Vote up |  Login to Vote down

Presumably, the figure includes what's already been spent and maybe it's the total to be shared between BG and Petrobas.

---

More |  View thread (6) |  Respond |  Login to Vote up |  Login to Vote down

I am puzzled. The Companies Market Cap is about £36Billion. If they are going to invest £20Billion in Brazil in the next 3 years they are going to have to do some fairly smart financing or have a huge rights issue!
Can anyone comment?

---

More |  View thread (6) |  Respond |  Login to Vote up |  Login to Vote down