Brisbane, Aug 5, 2008 (ABN Newswire) - The Managing Director of Queensland Gas Company Limited (ASX:QGC)(PINK:QGSCF), Richard Cottee, has committed to remain in the position for a further six years, ensuring certainty and stability as QGC embarks on a major growth phase.
Mr Cottee's reappointment will see him continue as Managing Director until 30 June 2014 - at least six months after the first scheduled delivery in late 2013 of liquefied natural gas (LNG) from QGC's world-class LNG project with BG Group.
Mr Cottee will focus on QGC's strategy of becoming Australia's leading integrated energy company, ideally positioned to meet rising demand in Australia for coal seam gas and gas-fired power stations, and international demand for LNG from the Queensland Curtis LNG Project.
QGC Chairman Bob Bryan said today: "We are delighted that the winning formula we struck in late 2002 will continue for another six years with Richard agreeing to remain at the helm.
"Richard Cottee's commitment will maximise QGC's prospects of fulfilling its promise. When Richard was appointed in October 2002, the Company's shares were trading at just 21 cents, and production capacity and gas reserves were zero whereas today we see quite a different picture (see table).
"Shareholders in QGC have benefited tremendously in recent years and they have every reason to be satisfied that the driver of much of the success will see through the company's transformation."
The reappointment of Mr Cottee comes after confirmation by LINK Market Services of QGC as standout leader in the S&P/ASX 100 in terms of Total Shareholder Return (TSR) over both one and two years.
QGC also announced that its Board had undertaken its annual review of Mr Cottee's remuneration and that the key terms of that remuneration for the 2008-09 period have been agreed.
Mr Cottee expressed gratitude to the Board of QGC for its vote of confidence.
"The Board's rock-solid backing and the professionalism of the first-class staff of QGC will help us to deliver on exciting projects integral to our ongoing growth," Mr Cottee said.
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RAPID GROWTH SINCE OCTOBER 2002
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MEASURE OCTOBER 2002 30 JUNE 2008
SHARES 21 cents $5.37
MARKET CAP $28 million $4.4 billion
2P RESERVES Zero certified reserves 2,415 PJ (QGC's
share is 1,932 PJ)
CASH AT BANK $3.5 million $704 million
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The following table sets out QGC's leading ranking on Total Shareholder Return as calculated by LINK Market Services:
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QGC OUTPERFORMS PEERS OVER ONE AND TWO YEARS
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TSR Ranking 2006 - 2008
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Company Name TSR % Rank Percentile
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QUEENSLAND GAS COMPANY LIMITED* 630.467 1 100.00
LEIGHTON HOLDINGS LIMITED 202.372 2 98.84
CSL LIMITED 123.052 3 97.67
SIMS GROUP LIMITED 110.686 4 96.51
WORLEYPARSONS LIMITED 104.000 5 95.35
ORIGIN ENERGY LIMITED 99.987 6 94.19
ONESTEEL LIMITED 87.979 7 93.02
RIO TINTO LIMITED 82.049 8 91.86
SANTOS LIMITED 71.265 9 90.70
BLUESCOPE STEEL LIMITED 59.211 10 89.54
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TSR Ranking 2007-2008
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Company Name TSR % Rank Percentile
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QUEENSLAND GAS COMPANY LIMITED 146.563 1 100.00
RIO TINTO LIMITED 57.611 2 98.91
SANTOS LIMITED 53.675 3 97.83
ORIGIN ENERGY LIMITED 52.104 4 96.74
OIL SEARCH LIMITED 49.560 5 95.65
WOODSIDE PETROLEUM LIMITED 47.080 6 94.57
NEWCREST MINING LIMITED 45.397 7 93.48
SIMS GROUP LIMITED 44.625 8 92.39
BHP BILLITON LIMITED 41.348 9 91.30
WORLEYPARSONS LIMITED 34.376 10 90.22
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* Data adjusted by LINK Market Services to
incorporate a 1 for 4 rights issue at 63 cents
a share in August 2006
Approximately 83 per cent of Mr Cottee's potential remuneration for 2008-09 is linked to QGC achieving specific sharerelated goals this year and over the two following years, to the benefit of all shareholders. The key agreed terms, which are applicable from 1 July 2008, are set out below:
Total Fixed Remuneration (TFR):
$1,750,000 for 2008-09, to be reviewed annually (previously $900,000 for 2007-08)
Short Term Incentive (STI):
An annual opportunity of up to 90 per cent of TFR, subject to the achievement of confidential performance targets set in advance by the Board.
Long term Incentive (LTI):
Two equal tranches of LTI Rights* each contingently valued at $3,500,000 as of 1 July 2008, with different measurement periods. The measurement period for the first LTI is two years and for the second LTI, three years. This allows for continuity of LTIs while moving towards a more standard three-year measurement period (to be adopted from next year).
- LTI 1 to vest** on 30 June 2010 (measurement period: 1 July 2008 to 30 June 2010)
- LTI 2 to vest** on 30 June 2011 (measurement period: 1 July 2008 to 30 June 2011)
* Mr Cottee had the option of electing to take these LTI Rights as rights to shares, or as rights to three times as many options. Mr Cottee has elected to take these as rights to options
** The extent to which vesting occurs is subject to the achievement of performance criteria set by the Board. The relevant criteria are:
- Total Shareholder Return relative to other constituents of S&P/ASX 100. The threshold at which 25 per cent of TFR vests is the 50th percentile and 200 per cent of TFR vests at the 75th percentile.
- A further comparison will be made after a further 6 months if, at the end of each respective measurement period, full vesting has not occurred.
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