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Q4 2012 Earnings Call – Shell

Shell · Jan 31, 2013 · 51 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q4 2012 Earnings Call – Shell – slide 1
    ROYAL DUTCH SHELL PLC FOURTH QUARTER 2012 RESULTS & STRATEGY UPDATE DELIVERING COMPETITIVE & INNOVATIVE PERFORMANCE LONDON, JANUARY 31 2013 Copyright of Royal Dutch Shell plc 31 January 2013 1
  2. Q4 2012 Earnings Call – Shell – slide 2
    ROYAL DUTCH SHELL PLC FOURTH QUARTER 2012 RESULTS AND STRATEGY UPDATE PETER VOSER CHIEF EXECUTIVE OFFICER Copyright of Royal Dutch Shell plc 31 January 2013 2
  3. Q4 2012 Earnings Call – Shell – slide 3
    RECONFIRMING OUR GROWTH AGENDA ON TRACK FOR 2012-15 TARGETS Maintaining our long term focus; managing short-term headwinds 2012 reported CCS earnings 27 billion, total CFFO 46 billion; delivering growth Expected Q1 2013 dividend…
  4. Q4 2012 Earnings Call – Shell – slide 4
    FOCUS ON SAFETY AND ASSET INTEGRITY 2012 UPDATE GOAL ZERO ON SAFETY SPILLS - OPERATIONAL injuries TRCF/million working hours million working hours Volume in thousand tonnes 5 900 10 4 800 8 3 700 6 2 600 4 1 500 2 0 400 0 '03 '04…
  5. Q4 2012 Earnings Call – Shell – slide 5
    ENERGY MARKET ROBUST LONGER-TERM FUNDAMENTALS MANAGING SHORT-TERM VOLATILITY ENERGY DEMAND OUTLOOK /bbl per unit of measurement million boe/d 140 12 400 120 10 100 300 8 80 6 200 60 4 40 100 2 20 0 0 0 1980 1990 2000…
  6. Q4 2012 Earnings Call – Shell – slide 6
    STRATEGY AND CAPITAL ALLOCATION TOTAL CAPITAL INVESTMENT billion UPSTREAM 40 Growth strategy; price upside Priority: deep-water, integrated gas, resources plays 30 DOWNSTREAM Optimize re-shaped portfolio Selective growth 20…
  7. Q4 2012 Earnings Call – Shell – slide 7
    RECONFIRMING OUR OUTLOOK 2012 OUTLOOK Cash flow from operations 46 billion 2012-15: 175-200 billion (43 billion ex W/C) Net capex 30 billion 2012-15: 120-130 billion Dividends distributed 10.8 billion 2013 11 billion Oil and…
  8. Q4 2012 Earnings Call – Shell – slide 8
    IMPROVING OUR PERFORMANCE EARNINGS TOTAL SHAREHOLDER RETURN billion CCS +45% 80% 30 60% 40% 10 20% 0% 2010 2011 2012 2010-2012 -10 -20% Shell Other majors -40% CASH FLOW FROM OPERATIONS VOLUMES billion million boe per day…
  9. Q4 2012 Earnings Call – Shell – slide 9
    OPERATIONAL EXCELLENCE UNPLANNED DOWNTIME: DOWNSTREAM LNG RELIABILITY % % 10 100 5 90 0 80 2006 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Oil Products Chemicals UPSTREAM FACILITIES COMPONENT COST (IPA)…
  10. Q4 2012 Earnings Call – Shell – slide 10
    2010-12 TRACK RECORD START-UPS 2010-12 FINANCIAL PERFORMANCE: 20 START-UPS 2010-12 2010 billion million boe per day USA: Perdido 10 Singapore: Chemicals 0.6 North America: tight gas Nigeria: Gbaran Ubie Ph1 0.4 5 Norway: Gjoa…
  11. Q4 2012 Earnings Call – Shell – slide 11
    ROYAL DUTCH SHELL PLC Q4 + 2012 RESULTS SIMON HENRY CHIEF FINANCIAL OFFICER Copyright of Royal Dutch Shell plc 31 January 2013 12
  12. Q4 2012 Earnings Call – Shell – slide 12
    Q4 AND 2012 FINANCIAL HIGHLIGHTS EARNINGS 2011-12 billion 28 FY 2011 FY 2012 26 UPSTREAM 20.6 20.0 24 DOWNSTREAM (CCS) 4.3 5.3 22 BUSINESS SEGMENTS TOTAL 24.9 25.3 20 CORPORATE & MINORITIES (0.2) (0.2) 18 CCS NET EARNINGS 24.7…
  13. Q4 2012 Earnings Call – Shell – slide 13
    UPSTREAM & DOWNSTREAM PERFORMANCE UPSTREAM EARNINGS DOWNSTREAM EARNINGS billion billion 2 6 4 1 2 0 0 -1 Q411 Q112 Q212 Q312 Q412 Q411 Q112 Q212 Q312 Q412 Other Upstream Oil Products Integrated gas Chemicals SHELL OIL &…
  14. Q4 2012 Earnings Call – Shell – slide 14
    CASH FLOW AND PAYOUT CASH GENERATION DIVIDEND TRACK RECORD billion billion billion billion 2010-12 2012 65 140 60 10 120 DOWN 100 STREAM 8 40 DOWN 80 STREAM 6 55 60 20 4 40 UP UP STREAM STREAM 20 2 0 0 0 45 Sources Uses…
  15. Q4 2012 Earnings Call – Shell – slide 15
    WORKING OUR PORTFOLIO FOR GROWTH & CAPITAL EFFICIENCY DIVESTMENTS 2010-2012 ACQUISITIONS 2010-2012 21 17 Onshore assets, Nigeria Permian, USA billion billion Upstream Upstream Downstream Holstein, Gulf of Mexico Downstream…
  16. Q4 2012 Earnings Call – Shell – slide 16
    SEC PROVED RESERVES POSITION 2010-12 RESERVES ADDITIONS 2012 RESERVES PERFORMANCE 2012 RRR 44% 2010-12 RRR 84% Reserves life at end 2012 11 years 2010-12 RESERVES AVG. PERFORMANCE Organic2 additions 4.2 billion boe Production…
  17. Q4 2012 Earnings Call – Shell – slide 17
    HYDROCARBON MATURATION + RETURNS CONVERTING RESOURCES TO PRODUCTION AND RETURNS billion boe billion % Longer-term upside 250 40 35 Abadi FLNG Phase 1 Tukau Timur Zaedyus Gbaran Ubie Ph2 Zabazaba 200 Rab Harweel Erha North ph3 30…
  18. Q4 2012 Earnings Call – Shell – slide 18
    COMPETITIVE PERFORMANCE EARNINGS PER SHARE GROWTH CASHFLOW PER SHARE GROWTH % growth 2010-2012 % growth 2010-2012 100 60 75 40 50 20 25 0 0 Shell ExxonMobil Chevron TOTAL BP Shell ExxonMobil Chevron TOTAL BP -20 CAPITAL…
  19. Q4 2012 Earnings Call – Shell – slide 19
    ROYAL DUTCH SHELL PLC REFRESHING OUR GROWTH OUTLOOK PETER VOSER CHIEF EXECUTIVE OFFICER Copyright of Royal Dutch Shell plc 31 January 2013 20
  20. Q4 2012 Earnings Call – Shell – slide 20
    INVESTMENT PRIORITIES ORGANIC CAPEX 2013 billion Reserves-rich plays with long-term drivers FUTURE LONGER TERM Iraq, Nigeria, Kazakhstan, Heavy Oil & Arctic 30 OPPORTUNITIES Slower pace + capital allocation RESOURCES PLAYS…
  21. Q4 2012 Earnings Call – Shell – slide 21
    DOWNSTREAM ENGINE Long-term engine Gasnor acquisition Lubes Russia Cost + portfolio steps to Rhineland Connect enhance profitability LNG to US gas-to- transport chemicals China Retail + Lubes Qatar chemicals China refining…
  22. Q4 2012 Earnings Call – Shell – slide 22
    UPSTREAM GROWTH PORTFOLIO UNDER CONSTRUCTION AOSP Kashagan Forcados debottlenecking Phase1 Yokri Bonga FUTURE North OPPORTUNITIES West Majnoon Southern Swamp AG FCP North American North American tight gas tight gas…
  23. Q4 2012 Earnings Call – Shell – slide 23
    2013-14 START-UPS 0.5 MBOE PER DAY 2013 EXAMPLES Kashagan Phase 1, Kazakhstan Majnoon FCP, Iraq North Rankin, Australia MarsB Olympus hull arrives in Texas, USA Copyright of Royal Dutch Shell plc 31 January 2013 24
  24. Q4 2012 Earnings Call – Shell – slide 24
    MATURING 30 NEW OPTIONS 2013+ 1MBOED POTENTIAL; 13 BILLION BOE RESOURCES AOSP Pearls - Khazar Debottlenecking FUTURE Nigeria NLNG Train 7 Gbaran Ubie Ph 2 OPPORTUNITIES Majnoon FFD /West Qurna FFD Carmon Creek Expansion Ph 1…
  25. Q4 2012 Earnings Call – Shell – slide 25
    MAXIMIZING VALUE IN OUR UPSTREAM ENGINES EXAMPLE: EUROPE UPSTREAM CAPEX PRODUCTION Beryl + Draugen billion million boe per day Schiehallion stakes increased 1.0 Increased stake Clair from 36% to 55% 3 Redevelopment Fram 0.8…
  26. Q4 2012 Earnings Call – Shell – slide 26
    INDUSTRY-LEADING INTEGRATED GAS PORTFOLIO Leveraging Shells scale + market North America: developing growth new gas value chain options Green Corridor GTT Pearl GTL Technology and project delivery Ramp up 2012 capabilities…
  27. Q4 2012 Earnings Call – Shell – slide 27
    NORTH AMERICA & AUSTRALIA INTEGRATED GAS CLOSE-UP NORTH AMERICA AUSTRALIA/INDONESIA Sunrise FLNG Abadi FLNG Browse BCT Prelude FLNG LNG Canada LNG Green Corridor GTT Pluto LNG 1(Woodside) North West Shelf North Rankin 2…
  28. Q4 2012 Earnings Call – Shell – slide 28
    GLOBAL DEEP-WATER LEADING IOC DEEP-WATER PORTFOLIO Established production leadership Standardized developments + production technology Mars-B Cardamom Malaysia / Gulf of Mexico Brunei Nigeria Frontier exploration potential On…
  29. Q4 2012 Earnings Call – Shell – slide 29
    DEEP-WATER GULF OF MEXICO 0.2 MBOE/D 2012; GROWTH POTENTIAL Mars B Appomattox 100 kboe/d 150 kboe/d hub potential Shell 71.5 % (operator) 500 million boe resources Shell 80% (operator) 2013 appraisal of Vicksburg (Shell 75%)…
  30. Q4 2012 Earnings Call – Shell – slide 30
    FUTURE OPPORTUNITIES MAJOR POSITIONS IN LONGER TERM PLAYS Arctic KAZAKHSTAN SPDC PHOTO OF NEW PROJECT PLEASE. DISCO = AOSP debottlenecking Shell operatorship RUST BUCKET + CCS post start-up 2013 IRAQ Heavy Oil Majnoon FCP 2013…
  31. Q4 2012 Earnings Call – Shell – slide 31
    2012 ALASKA PERFORMANCE 2 top holes drilled 20 vessels and 2,000 employees/contractors, 12,000 employee rotations Positive support from regulators + community 300 km Kulluk rig incident MULTIPLE DRILLING BARRIERS DRILLING…
  32. Q4 2012 Earnings Call – Shell – slide 32
    RELOADING OUR CONVENTIONAL PORTFOLIO BUILDING CONVENTIONAL ACREAGE Yinggehai 000 km2 cumulative cumulative spend French Guiana gross acreage billion Gabon Greenland 400 GOM Tanzania 6 Guyana Iraq Turkey Frontier Abadi…
  33. Q4 2012 Earnings Call – Shell – slide 33
    2012 CONVENTIONAL EXPLORATION AND APPRAISAL KEY RESOURCES ADDITIONS - DRILLING E&A RESOURCES ADDED 2012 billion boe 0.6 Middle East, Africa, CIS Gulf of Mexico appraisal Appomattox 500 mmboe (Shell 80%) Malaysia: FID 2015 Tukau…
  34. Q4 2012 Earnings Call – Shell – slide 34
    BUILDING UP GLOBAL LEADERSHIP IN RESOURCES PLAYS TIGHT/SHALE OIL AND GAS BUILDING NEW TIGHT/SHALE ACREAGE 000 km2 cumulative cumulative spend gross acreage billion 60 20 Entry cost 15 Tight gas Germany 40 Liquids rich shale…
  35. Q4 2012 Earnings Call – Shell – slide 35
    NORTH AMERICA RESOURCES PLAYS PROGRESS TIGHT/SHALE OIL AND GAS 30,000 km2 portfolio, 60% liquids-rich Canol Eagle Ford LRS development underway Montney Groundbirch Deep Basin Foothills Duvernay Drilling focus shifted to LRS…
  36. Q4 2012 Earnings Call – Shell – slide 36
    PRODUCTION OUTLOOK GROUP PRODUCTION OUTLOOK Prelude cutting first steel in South Korea Region Theme 100% Future Opportunities Middle East, Africa, Deep-water CIS 75% Resources Plays Mars B TLP on its way to Gulf of Mexico…
  37. Q4 2012 Earnings Call – Shell – slide 37
    TURNING NEW INVESTMENT INTO CASH FLOW 2013 CAPEX & OUTCOME IMPACT OF KEY UPSTREAM START-UPS billion billion 20 Exploration & 30 Appraisal 15 2017+ 10 2013+ Key Projects Start-up CFFO 2015-16 5 20 2010-12 0 2013-14…
  38. Q4 2012 Earnings Call – Shell – slide 38
    ROYAL DUTCH SHELL PLC FINANCIAL FRAMEWORK SIMON HENRY CHIEF FINANCIAL OFFICER Copyright of Royal Dutch Shell plc 31 January 2013 39
  39. Q4 2012 Earnings Call – Shell – slide 39
    PRIORITY ON FINANCIAL PERFORMANCE ON TRACK FOR AMBITIOUS CFFO GROWTH + INVESTMENT PLAN (100 scenario) billion 100/bbl 50 macro Portfolio/ Free Growth outlook: Choice1 112/bbl cashflow New projects 40 91/bbl Enhanced unit cash…
  40. Q4 2012 Earnings Call – Shell – slide 40
    PRODUCTION & POTENTIAL OIL & GAS PRODUCTION + OUTCOMES UPSTREAM CAPEX + CFFO SCENARIO million boe/day 4 Longer Term 2 Growth Priority 0 2011 2012 17-18 avg Production + potential 2012+ asset sales Upstream Engine 2012…
  41. Q4 2012 Earnings Call – Shell – slide 41
    EXPLORATION AND APPRAISAL 2013-14 KEY WELLS CONVENTIONAL billion Browse 6 North Sea Alaska 4 Abadi Russia Iraq Germany Ukraine Kazakhstan 2 North America LRS Albania Turkey US GoM China Egypt Qatar 0 Oman Yinggehai 2009…
  42. Q4 2012 Earnings Call – Shell – slide 42
    CAPITAL INVESTMENT + OUTLOOK TOTAL CAPITAL INVESTMENT ORGANIC CAPITAL INVESTMENT billion billion billion UPSTREAM DOWNSTREAM 30 6 30 20 20 4 10 2 10 0 0 0 2012 2013 2012 2013 2012 2013 Upstream engine Resources plays…
  43. Q4 2012 Earnings Call – Shell – slide 43
    MAINTAINING OUR FINANCIAL FRAMEWORK CASH PERFORMANCE 175-200 billion CFFO 2012-15 Grow free cash flow CFFO drives investment + payout PAY-OUT INVESTMENT Dividend linked to business results 120-130 billion net capex 2012-15…
  44. Q4 2012 Earnings Call – Shell – slide 44
    ROYAL DUTCH SHELL PLC FOURTH QUARTER 2012 RESULTS AND STRATEGY UPDATE PETER VOSER CHIEF EXECUTIVE OFFICER Copyright of Royal Dutch Shell plc 31 January 2013 45
  45. Q4 2012 Earnings Call – Shell – slide 45
    SHELL FUTURE LONGER TERM OPPORTUNITIES RESOURCES PLAYS GROWTH ON TRACK FOR 2012-15 TARGETS DEEP-WATER PRIORITY GROWTH DELIVERY INTEGRATED GAS CAPITAL DISCIPLINE + TRACK RECORD UPSTREAM ENGINES DOWNSTREAM…
  46. Q4 2012 Earnings Call – Shell – slide 46
    ROYAL DUTCH SHELL PLC Q&A Copyright of Royal Dutch Shell plc 31 January 2013 47
  47. Q4 2012 Earnings Call – Shell – slide 47
    ROYAL DUTCH SHELL PLC BACK UP Copyright of Royal Dutch Shell plc 31 January 2013 48
  48. Q4 2012 Earnings Call – Shell – slide 48
    KEY PROJECTS UNDER CONSTRUCTION Upstream Engine Deep-water Resources plays Integrated Gas Longer term Copyright of Royal Dutch Shell plc 31 January 2013 49
  49. Q4 2012 Earnings Call – Shell – slide 49
    STRONG PORTFOLIO OF PRE-FID UPSTREAM OPTIONS POTENTIAL 2014-2020 START-UPS Upstream Engine Integrated Gas Deep-water Longer term Resources plays Copyright of Royal Dutch Shell plc 31 January 2013 50
  50. Q4 2012 Earnings Call – Shell – slide 50
    PROJECT MANAGEMENT + PERFORMANCE PROJECT STATUS Construction time elapsed % BAB THAMAMA G & BAB KASHAGAN PHASE 1 SAS NORTH RANKIN 2 AOSP DEBOTTLENECKING BONGA NW MAJNOON FCP CORRIB GUMUSUT-KAKAP BC-10 PHASE 2 MARS B, W.…
  51. Q4 2012 Earnings Call – Shell – slide 51
    2010-2012 RESERVES SUMMARY RESERVES IN MILLION BOE3 Movements 2010 2011 2012 Organic1 reserves additions 1,653 1,545 1,047 Year average price effect -198 -235 -431 Production -1,242 -1,212 -1,234 Acquisition & divestment -85 -105…

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