8th Nov 2005 07:01
BG GROUP plc08 November 2005 MediaInformation 8 November 2005 BG Group to Return Capital to Shareholders and Increase Investment BG Group has today announced its intention to return up to £1 billion toshareholders through a share repurchase programme. In addition, the Group plansto increase investment during 2005 - 2006 by £500 million. Frank Chapman, Chief Executive, BG Group said: "BG Group is committed to capital discipline and the creation of shareholdervalue through investment. The strength of our financial position and outlookenables us to return up to £1 billion to shareholders, increase our investmentin new growth projects by £500 million and retain the flexibility to takeadvantage of further investment opportunities as and when they arise. "Earlier this year, we received £800 million after tax from the sale of ourinterest in the North Caspian asset. Strong operating performance, the growth inour business and higher commodity prices have also substantially improved theGroup's cashflow. "The £500 million of new investment reflects our recent success in acquiringsignificant new exploration acreage and opportunities we have identified foraccelerating and enhancing our existing portfolio." The repurchase programme will be in accordance with the Group's generalauthority to make market purchases of its ordinary shares, as approved byshareholders. The Group will seek shareholder approval to renew this authorityat the next AGM. The programme is expected to be effected over 12 to 18 months through purchaseson the London Stock Exchange and will be dependent on market and economicconditions. It is intended that the shares repurchased will be held as Treasuryshares. -ends- There are matters discussed in this media information that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to the Company's annual report and accounts for the year ended 31 December 2004. Notes to Editors: BG Group plc is a global natural gas business. Active on five continents in over20 countries, it operates four business segments - Exploration and Production,LNG, Transmission and Distribution and Power. Enquiries: Communications Jonathan Miller +44 (0) 118 929 3717 Out of hours media mobile: +44 (0) 791 718 5707 Investor Relations Chris Lloyd/Helen Parris/ Kate Bingham +44 (0) 118 929 3025 Website: www.bg-group.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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