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![References
Clee, DJ. “Royal Dutch – Shell: 1919-1946” [Slide 5,6,7]
http://en.wikipedia.org/wiki/Royal_Dutch_Shell [Slide 2,3,4,11,13]
www.shell.com [Slide 10,12]
http://royaldutchshellplc.com/2011/03/31/you-can-be-sure-of-shell-
the-biggest-confidence-trick-in-history/ [Slide 7]
http://www.reuters.com/finance/stocks/companyOfficers?symbol=R
DSb.L&WTmodLOC=C4-Officers-5 [Slide 8,9]
http://www.londonstockexchange.com/exchange/prices-and-
markets/stocks/prices-search/stock-prices-
search.html?nameCode=RDSA [Slide 13]
15](https://image.slidesharecdn.com/8a7e96cd-f169-497c-b44e-bf2985f8fe22-150208053912-conversion-gate02/85/Royal-Dutch-Shell_Group-1_Section-D-15-320.jpg)
![References
Shell Analyst Management Day London [Slide 10]
http://www.shell.com/ind/aboutshell/shell-businesses/india-business-structure/lubes-
india.html [Slide 9]
http://www.nasdaq.com/symbol/rds.a/ownership-summary#ixzz3BnDRtYlr [Slide 7]
http://www.4-traders.com/ROYAL-DUTCH-SHELL-PLC-4005177/company/ [Slide 4,7]
http://www.4-traders.com/EXXON-MOBIL-CORPORATION-4822/company/ [Slide 5]
https://www.google.com/finance?q=NYSE%3ARDS.B&fstype=ii&ei=3e4AVKDyDsO9lAWUtIDYDQ
[Slide 8]
http://en.wikipedia.org/wiki/Petroleum_industry [Slide 2,3]
27](https://image.slidesharecdn.com/8a7e96cd-f169-497c-b44e-bf2985f8fe22-150208053912-conversion-gate02/85/Royal-Dutch-Shell_Group-1_Section-D-27-320.jpg)
Uploaded byRakesh Choudhary
Royal Dutch Shell_Group 1_Section D
Royal Dutch Shell is a multinational oil and gas company founded in 1907 through the merger of Royal Dutch Petroleum Company and Shell Transport and Trading Company. It operates in over 90 countries and produces 3.1 million barrels of oil equivalent per day. Shell has a long history of oil production and supplying the Allied forces during World Wars I and II. It is currently one of six oil supermajors and has diversified into renewable energy. Shell engages in corporate social responsibility initiatives and had $451 billion in revenue in 2013.
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Royal Dutch Shell_Group 1_Section D
- 1. 1 Presentation 1 Royal DutchShell Section D
- 2.
- 3. History Royal Dutch PetroleumCompany Founded in 1890, after licensed by King William III of the Netherlands to work on petroleum wells in The Dutch East Indies + Shell Transportation and Trading Company Antique business importing and selling sea shells, founded in 1897 in London = Royal Dutch Shell Group Created in February 1907 Merger was largely driven by the need to compete globally Ownership ratio between the Netherlands and Britain 60:40 3
- 4. Introduction HQ: Netherlands,Registered office: London Largest company in the world in the Oil & Gas industry, 1 of 6 “Supermajors” Royal Dutch Shell’s revenue was equivalent to 84% of Netherland’s GDP in 2013, valuing USD 555.8 Billion Dynamic in all area of Oil & Gas Industry Exploration Production Refining Distribution & marketing Petrochemicals Power generation 3
- 5. Introduction (Continued) 90countries, 44,000 service stations, 92,000 employees 3.1 million barrels of oil equivalent produced per day Topped the 2013 Fortune global Top 500 list 2014: Second in terms of revenue in the Financial Times list Ventured into renewable energy resource market recently Biofuel Wind Natural Gas 5 4
- 6. World War IPeriod (1914-1918) Main supplier to the British Expeditionary Force Sole supplier of aviation fuel Supplied 80% of British Army’s TNT Volunteered all it’s shipping to British Admiralty Inter-war Period (1919-1939) 1920: Leading oil company globally 11% of the world’s crude oil supplier Owned 10% of tanker tonnage 6 5
- 7. Inter-war Period (1919-1939) “Youcannot carry on a war without oil. The capital of the Netherlands East Indies is Britain and America, and the Dutch Government-in-exile has fled to England; so I think it will be impossible to obtain oil... by peaceful means.” - Hara Yoshimichi, President of the Privy Council, Japan “This all shows that the Netherlands East Indies are slowly but certainly becoming an object which must be taken into account in world affairs. The Netherlands East Indies, 25 years ago a friendly corner in the Pacific, are now a card in the game of which note must be taken.” - Bataviaasche Nieuwsblad (Dutch colonial newspaper) on 28th November, 1936 7 6
- 8. World War II(1939-1945) Shell Chemical Company specifically manufactured Butadiene for synthetic rubber Used in military truck tyres Continued production and supply of aviation fuel to Britain Under then Chairman Henry Deterding, pro-Nazi stance was taken by Royal Dutch Shell Massive financial support by Fascist Deterding to Adolf Hitler After his death in 1939 during combat the company was Pro- Allies Lost 87 Shell ships in enemy action Lost £90 million due to their “Scrotched Earth” protocol Origin of “You can be sure of Shell” tagline to rebuild confidence 8 7
- 9. Organization Hierarchy Board of Directors Chairmanof the Board & Managing Director Vice Chairman of the Board Deputy Managing Directors Strategic corporate planning & development Administration and Human Resources Finance Marketing Refinery Manufacturing 9 8
- 10. Jorma Ollila Chairman of theBoard 2006 Ben van Beurden Chief Executive Officer 2014 Simon Henry Chief Financial Officer 2009 Matthias Bichsel Projects& Technology Director 2009 John Abbott Downstream Director 2013 Hugh Mitchell Chief Human Resources & Corporate Officer 2009 Andrew Brown Upstream Director 2012 CurrentExecutiveBoard 10 9
- 11. Products Shell Bitumen Cost effective and sustainable solutions Shell LPG Dimethylether (DME) main constituent Shell Marine Products Specialized lubricants for air compressor, axles, bearings Grease Card services Shell Fuel Card for Businesses Shell Credit Card Fuels Shell Nitrogen Enriched fuel V-Power fuel Oil and Lubricants For cars and bikes Heavy-duty vehicles Shell Chemicals Petrochemicals used in plastics, rubbers, fibers, foams Further used in textile, paints, mattress industries Shell Aviation Fuel and lubricants Turbine and Piston Engine oil 11 10
- 12. Competitors Exxon Mobil Revenue: $428.3 billion Daily production: 6.4 million barrels Reserves: 13.6 billionbarrels of Oil Equivalent Chevron Corp. Revenue: $222.5 billion Daily production: 2.6 million barrels Reserves: 11.3 billion barrels of Oil Equivalent British Petroleum Revenue: $375.5 billion Reserves: 18.1 billion barrels of Oil Equivalent Daily production: 4.1 million barrels Total SA Revenue: $237.0 billion Daily production: 3.4 million barrels Reserves: 11.5 billion barrels of Oil Equivalent Royal Dutch Shell Revenue: $451.2 billion Daily production: 3.1 million barrels Reserves: 13.6 billion barrels of Oil Equivalent 12 11
- 13. Corporate Social Responsibility Shell Foundation, established in 2000 Initial endowment from Shell group: $250 million Annual donations: $15 million Voluntary social investment globally: $159 million CSR programs include: Aspire: Program for SMEs in Africa Assistance and Business Capital Excelerate: Modern energy services to the poor India and Bangladesh GACC: Global Alliance for Clean Cookstoves $6 million in 3 years Tackle harmful smoke caused by open fires or inefficient stoves 13 12
- 14. Financial Data &Endorsements Total revenue: $451.2 billion Operating income: $26.87 billion Profit: $16.38 billion Total asset: $357.51 billion Total equity: $180.04 billion Current stock price (London Stock Exchange): £2403.5 Sponsors of F1 racing Ferrari team and cars, since 1970 Belgian Grand Prix title sponsor Title sponsors for Asia Talent Cup 14 13
- 15. References Clee, DJ.“Royal Dutch – Shell: 1919-1946” [Slide 5,6,7] http://en.wikipedia.org/wiki/Royal_Dutch_Shell [Slide 2,3,4,11,13] www.shell.com [Slide 10,12] http://royaldutchshellplc.com/2011/03/31/you-can-be-sure-of-shell- the-biggest-confidence-trick-in-history/ [Slide 7] http://www.reuters.com/finance/stocks/companyOfficers?symbol=R DSb.L&WTmodLOC=C4-Officers-5 [Slide 8,9] http://www.londonstockexchange.com/exchange/prices-and- markets/stocks/prices-search/stock-prices- search.html?nameCode=RDSA [Slide 13] 15
- 16. 16 Presentation 2 Royal DutchShell Section D
- 17. Recapitulation Royal DutchPetroleum Company + Shell Transportation and Trading Company = Royal Dutch Shell Group (1907) One of six “Supermajors” Shell during World War I, Interwar Period & World War II: Advent of You can trust Shell Organizational Hierarchy: Global and Regional Current Executive Board Shell’s major product offerings Competitors: Exxon Mobil, Chevron Corp., British Petroleum and Total SA Corporate Social Responsibility Initiatives Financial Data Endorsements 17 1
- 18. The world’slargest industry in terms of dollar value Includes global processes of: exploration, extraction, refining, transporting, marketing and retailing of petroleum products Divided into 3 major operational strata: Upstream, Midstream and Downstream World consumes 30 billion barrels (4.8 km³) of oil annually Oil accounts for a large percentage of the world’s energy consumption: low of 32% (Europe and Asia), high of 53% (Middle East) “Supermajor” companies oil produce <15% of total world supply National oil companies control >80% of the world's reserves of oil and natural gas 18 The Petroleum Industry 2
- 19. 19 The Petroleum Industry Countrywise Oil Production in the decade between 1960 to 2006 3
- 20. 20 Global “Cartels” &Shell’s Region-wise Revenue 4
- 21. Competitors’ Operational Analysis(2013) Exxon Mobil Downstream: 206,794m GBP Upstream: 23,567m GBP Corporate: 126m GBP Chevron Corp. Downstream: 111,999m GBP Upstream: 15,481m GBP Corporate: 217m GBP British Petroleum Downstream: 224,011m GBP Corporate: 600.73m GBP Upstream: 17,943m GBP Sinopec Downstream: 128,799m GBP Upstream: 23,741m GBP Corporate: 133.46m GBP Royal Dutch Shell Downstream: 258,286m GBP Upstream: 30,297m GBP Corporate: 97.88m GBP21 5
- 22. Company Percentage Valuation(USD) Shell Oman Marketing 100.0% 13,636,350 Shell Pakistan Ltd. (SHEL) 76.1% 230,591,556 Hankook Shell Oil Co. Ltd. 53.8% 348,007,975 Shell Refining Company (FOM) Berhad 51.0% 263,297,700 Shell Oman Marketing Company SAOG 46.1% 238,909,290 Showa Shell Sekiyu KK 35.8% 1,501,054,181 Companhia de Gas de Sao Paulo-Comgas 22.8% 481,169,466 Codexis (CDXS) 14.4% 11,703,970 Chesapeake Energy Corp. 100.0% 20,000,000,00022 Shell’s Acquisitions & Holdings 6
- 23. Name Percentage Institutional Shareholders(999) 13.29% Necigef Nederlands Centraal Inst Giraal Effectenverkeer BV 43.8% BlackRock Investment Management (UK) Ltd. 3.54% State Administration of Foreign Exchange 1.90% The Vanguard Group, Inc. 1.41% Scottish Widows Investment Partnership Ltd. 1.34% Legal & General Investment Management Ltd. 1.34% State Street Global Advisors Ltd. 1.01% BlackRock Fund Advisors 0.84% SSgA Funds Management, Inc. 0.83% Franklin Mutual Advisers LLC 0.80% 23 Who Owns Shell? 7
- 24. 24 Shell: The Last4 Years 2013 (in mill USD) 2012 (in mill USD) 2011 (in mill USD) 2010 (in mill USD) Total revenue 451,235.00 467,153.00 470,171.00 368,056.00 Operating Income 26,870.00 37,722.00 42,598.00 32,197.00 R&D 6,596.00 4,411.00 3,389.00 3,055.00 Gross Profit 69,650.00 71,213.00 73,574.00 84,880.00 Possible reasons for drastic drop in Revenue in 2012-13: Political turmoil in the oil-producing Middle East Particularly in Syria, Egypt, Lebanon (Gulf nations) Highly price sensitive industry Affected all major players similarly: “trend” 8
- 25. 25 Shell In India Largest international investor in India’s energy sector: Invested US$1billion 1928: Burmah-Shell Oil Storage and Distributing Company of India Ltd. Import and Marketing of kerosene 1932, 15th Oct: Civil aviation arrived in India – Shell fueled J.R.D. Tata’s solo flight from Karachi to Mumbai 1950s: Introduced LPG as cooking fuel to Indian homes Shell Lubricants became 100% subsidiary of Royal Dutch Shell by acquiring minority stake of Bharat Petroleum Corporate Office: Gurgaon; 6 regional offices 2000 fuel retail stations, 250 distributors, 400 board members 9
- 26. 26 Analysis of SafetyMeasures 10
- 27. References Shell AnalystManagement Day London [Slide 10] http://www.shell.com/ind/aboutshell/shell-businesses/india-business-structure/lubes- india.html [Slide 9] http://www.nasdaq.com/symbol/rds.a/ownership-summary#ixzz3BnDRtYlr [Slide 7] http://www.4-traders.com/ROYAL-DUTCH-SHELL-PLC-4005177/company/ [Slide 4,7] http://www.4-traders.com/EXXON-MOBIL-CORPORATION-4822/company/ [Slide 5] https://www.google.com/finance?q=NYSE%3ARDS.B&fstype=ii&ei=3e4AVKDyDsO9lAWUtIDYDQ [Slide 8] http://en.wikipedia.org/wiki/Petroleum_industry [Slide 2,3] 27
- 28. Presented by: Naima Haque(2014169) Nikunj Gulati (2014179) Pankhuri Kasera (2014189) Pragna Kunda (2014199) Pulkit Agarwal (2014209) Rakesh Choudhary (2014220)