The BG Group is one of the UK’s largest oil and gas exploration and production companies.
A member of the FTSE-100, related to the former British Gas, BG-Group is a result of the de-merger of the Lattice Group, British Gas UK and is effectively the exploration and production arm of the old British Gas. Today, with a market capitalisation of about £41 Billion, it is an UK giant, and a world player on the energy market.
Looking at the financial statements [http://www.bg-group-ara.com/financial-statements/index.html], the company is excellent shape.
A balance sheet of £65 Billion in total assets and only £32 Billion in total liabilities, thus the shareholders have £33 Billion in Equity in the company.
Looking at the annual report [http://www.bg-group-ara.com/shareholder-information/shareholder-information.html] one find some useful information.
page 29: [$2.1 billion equivalent of hybrid bonds issued in three tranches and maturing in 2072]
page 29: [net borrowings were $10 624 million]
page 33: [Some of the major risks involved in BG Group, activities cannot, or may not, reasonably and economically be insured.]
page 76: The Major Shareholders:
BlackRock Inc 7.6%
Legal and General Group plc 3.52%
Norges Bank 4.48%
Very interesting to see that some of the bonds issued by BG Group mature in 2074, paying an annual interest rate of 6.5%. That rate is incredible.
[http://www.bg-group.com/INVESTORRELATIONS/Pages/BondholderInformation.aspx]
Yes, able to borrow on the bond market, for 61 years. What this means, is that creditors are willing to lend to BG Group, getting a fixed income on their money of 6.5% each year until 2074, as they must be confident in the long term ability (financial credibility) of BG Group to meet all its debt obligations. Thus they have confidence in the credit worthiness of BG Group. A very stable company.