First quarter results 2011 - April 28, 2011
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First quarter results 2011 - April 28, 2011 Presentation Transcript

  • 1. ROYAL DUTCH SHELL PLC FIRST QUARTER 2011 RESULTSTHE HAGUEAPRIL 28th, 20111 Copyright of Royal Dutch Shell plc 28/4/2011
  • 2. ROYAL DUTCH SHELL PLC FIRST QUARTER 2011 RESULTSSIMON HENRYCHIEF FINANCIAL OFFICER2 Copyright of Royal Dutch Shell plc 28/4/2011
  • 3. DEFINITIONS AND CAUTIONARY NOTEThe companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell”are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also usedto refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company orcompanies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectlyhas control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not controlare referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this presentation,associates and jointly controlled entities are also referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/orindirect (for example, through our 24% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of allthird-party interest.This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other thanstatements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based onmanagement’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differmaterially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of RoyalDutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statementsare identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’,‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. There are a number of factors that could affect the futureoperations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including(without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results;(e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potentialacquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject tointernational sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic andfinancial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmentalentities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-lookingstatements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not placeundue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended 31 December,2010 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of thedate of this presentation, 28 April 2011. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-lookingstatement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from theforward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in thefuture, or that they will be made at all.We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us fromincluding in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.You can also obtain these forms from the SEC by calling 1-800-SEC-0330.3 Copyright of Royal Dutch Shell plc 28/4/2011
  • 4. SUMMARYQ1 2011 RESULTSPERFORMANCE FOCUSGROWTH DELIVERY4 Copyright of Royal Dutch Shell plc 28/4/2011
  • 5. PRICES AND MARGINSSHELL OIL & GAS REALIZATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS$/BARREL $/MSCF $/BARREL $/TONNE100 7 12 600 10 500 90 6 8 400 80 6 300 70 5 4 200 60 2 100 50 4 - 0 US ETHANE US WEST COAST ROTTERDAM COMPLEX OIL GAS (RHS) WESTERN EUROPE NAPHTHA US GULF COAST COKING SINGAPORE NE/SE ASIA NAPHTHA •Q1 2011 CHEMICAL MARGINS: BASED ON AVAILABLE PRICES/MARGINS AT THE END OF THE QUARTER5 Copyright of Royal Dutch Shell plc 28/4/2011
  • 6. Q1 2011 FINANCIAL HIGHLIGHTSCCS EARNINGS ($ BILLION) Q1 2010 TO Q1 2011 $ BILLION 7 Q1 11 Q1 10 UPSTREAM 4.6 4.3 6 DOWNSTREAM (CCS) 1.7 0.8 BUSINESS SEGMENTS TOTAL 6.3 5.1 5 CORPORATE & MINORITIES 0 (0.3) CCS NET EARNINGS 6.3 4.8 4 CCS EARNINGS, $ PER SHARE 1.02 0.79 3 CASH FROM OPERATIONS 8.6 4.8 2 DIVIDENDS 2.6 2.6 DIVIDEND, $ PER SHARE 0.42 0.42 1 0Earnings CCS basis, Earnings and EPS Excluding Identified Items6 Copyright of Royal Dutch Shell plc 28/4/2011
  • 7. UPSTREAM PERFORMANCEEARNINGS OIL & GAS PRODUCTION$ BILLION MILLION BOE/D MILLION TONNES 5 4 4 4 3 3 3 2 2 2 1 1 1 0 0 0 Q110 Q210 Q310 Q410 Q111 Q110 Q210 Q310 Q410 Q111 OTHER UPSTREAM INTEGRATED GAS GAS OIL LNG SALES (MLN TONNES)Excluding Identified Items7 Copyright of Royal Dutch Shell plc 28/4/2011
  • 8. DOWNSTREAM PERFORMANCECCS EARNINGS AVAILABILITY AND SALES VOLUMES$ BILLION % AVAILABILITY VOLUME 100 7 2 1.5 95 6 1 90 5 0.5 85 4 0 80 3 -0.5 Q110 Q210 Q310 Q410 Q111 Q110 Q210 Q310 Q410 Q111 OIL PRODUCTS REFINERY AVAILABILITY OIL PRODUCT SALES (MLN BBLS/D) CHEMICALS CHEMICALS AVAILABILITY CHEMICALS SALES (MLN TONNES)EXCLUDING IDENTIFIED ITEMS8 Copyright of Royal Dutch Shell plc 28/4/2011
  • 9. CASH PERFORMANCE 12 MONTHSBUSINESSES GROUP$ BILLION $ BILLION35 50 UPSTREAM DOWNSTREAM SOURCES USES SOURCES30 4025 USES 302015 SOURCES 2010 10 USES 5 0 0 CASH FLOW FROM OPERATIONS EXCL. NET ACQUISITIONS MOVEMENTS IN WORKING CAPITAL CAPEX (EXCL. ACQUISITIONS) + EQUITY ACC. INVESTMENTS ASSET SALES PAY-OUT9 Copyright of Royal Dutch Shell plc 28/4/2011
  • 10. PERFORMANCE FOCUSDIVESTING NON-CORE POSITIONS2011 PROGRESS: $3.2 BILLION PROCEEDS Q1 2011 CUMULATIVE DIVESTMENT PROCEEDS $ BLN $5 BILLION 2011E CORPORATE LPG business Stanlow 30 UPSTREAMWilcat Hills worldwide/Woodenhouse DOWNSTREAM U.S. Car Care Pakistan South Texas GOM Assets Cano Sur 14 countries Africa 20 Chile Clyde Divestment /Exit announced or proposed CHILE DOWNSTREAM STANLOW REFINERY (UK) 10 • ~$0.6 Billion • ~$1.3 Billion • Shell reducing its retail footprint • 1.7 mln b/d of worldwide refining • 43 markets switched to indirect or exited capacity exited since 2002 (36%) UPSTREAM DOWNSTREAM AFRICA MARKETING • South Texas gas, $1.8 Billion • 14 country JV with Vitol and Helios • Various assets in the UK, USA, Canada • Shell retains brand and minority share 0 and Pakistan • ~$1 Billion 06 07 08 09 10 11E • ~60 kboe/d production10 Copyright of Royal Dutch Shell plc 28/4/2011
  • 11. GROWTH DELIVERY:PORTFOLIO PROGRESS Q1 2011 UK North Sea US Rockies US Marcellus Philippines Colombia Inaugural cargo, QatarGas 4 SCHOONEBEEK HEAVY OIL GERONGGONG (BSP) • 20 kboe/d start up Q1 2011 • 2010 deepwater discovery • 25 years additional production • ~200 mln bbl potential • Shell 30% • Shell 50% QATARGAS 4 LNG WHEATSTONE LNG • 7.8 mtpa LNG project onstream • Shell participation agreed • At full capacity in < 2 months • 6.4% of proposed 8.9 mtpa LNG • Shell 30% • 8% of unitized offshore gas fields Schoonebeek, Netherlands Start-up of 2 out of > 20 new projects 2011-2014; maturing new options UPSTREAM DOWNSTREAM EXPLORATION: NEW ACREAGE11 Copyright of Royal Dutch Shell plc 28/4/2011
  • 12. SUMMARYQ1 2011 RESULTS• Q1 earnings $6.3 bln; Q1-Q1 earnings per share growth of 29%• Increased energy prices + Shell actionsPEFORMANCE FOCUS• Continuous improvement• $3.2 billion divestments delivered in Q1 2011• $~1.9 billion additional divestments announcedGROWTH DELIVERY• >20 project start-ups 2011-14 underpin cashflow and production growth targets• 2 start-ups delivered in Q1 2011: Schoonebeek heavy oil, Qatargas 4 LNG• Maturing new growth options: confirming Geronggong discovery, Wheatstone LNG entryEarnings CCS Basis Excluding Identified Items12 Copyright of Royal Dutch Shell plc 28/4/2011
  • 13. ROYAL DUTCH SHELL PLC FIRST QUARTER 2011 RESULTS Q&A13 Copyright of Royal Dutch Shell plc 28/4/2011
  • 14. ROYAL DUTCH SHELL PLC FIRST QUARTER 2011 RESULTS THE HAGUE APRIL 28th, 201114 Copyright of Royal Dutch Shell plc 28/4/2011