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Q2 2015 Investor Presentation – Shell

Shell · Jul 30, 2015 · 40 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. Q2 2015 Investor Presentation – Shell – slide 1
    COMPANY UPDATE SECOND QUARTER 2015 ROYAL DUTCH SHELL 30 JULY 2015 Copyright of Royal Dutch Shell plc 30 July, 2015 1
  2. Q2 2015 Investor Presentation – Shell – slide 2
    BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 30 July, 2015 2
  3. Q2 2015 Investor Presentation – Shell – slide 3
    SUMMARY Integrated business + performance drive supporting results: 12 months CCS earnings 16.2 billion; CFFO 35.6 billion; dividend + buy-back 14 billion Dividend + buy-back commitment unchanged 1.88/share 2015; at least…
  4. Q2 2015 Investor Presentation – Shell – slide 4
    FOCUS ON HSSE H1 2015 UPDATE Goal Zero on safety Spills - operational Injuries TRCF/million working hours million working hours Volume in thousand tonnes Year to date Year to date TRCF Working hours (RHS) Energy intensity…
  5. Q2 2015 Investor Presentation – Shell – slide 5
    OIL PRICE + OUTLOOK Oil prices OPEC policy change and non-OPEC growth Brent in per barrel Medium-term supply/demand fundamentals remain positive Responding with urgency + determination Resilience in todays oil prices…
  6. Q2 2015 Investor Presentation – Shell – slide 6
    H1 2015 DELIVERY Earnings + ROACE Cash flow billion % billion billion Upstream Corporate/Other CFFO CFFI Free cash flow (RHS) Downstream ROACE (RHS) Dividend, buyback + gearing billion Gearing % range Integrated business +…
  7. Q2 2015 Investor Presentation – Shell – slide 7
    FINANCIAL FRAMEWORK AND PRIORITIES Priorities for cash Financial framework 1. Debt reduction Cash performance 2. Dividends 3. Buy-backs + capital investment Pay-out Investment Grow cash flow from operations + free cash…
  8. Q2 2015 Investor Presentation – Shell – slide 8
    TAKING STEPS TO MANAGE CAPITAL INVESTMENT 2013 2014 2015 2016 2017+ Majnoon FFD Carmon Creek ph1-2 FUTURE OPPORTUNITIES Carmon Creek ph3-4 RESOURCES PLAYS ; Appomattox Vito DEEP WATER WA Bonga South West Arrow…
  9. Q2 2015 Investor Presentation – Shell – slide 9
    DRIVING LOWER COST IN NEW DEVELOPMENTS Launched P&T change programme Example: Appomattox FID July 2015 Standardise: Shells 7th 4-column host in GOM 20% cost reduction into FID Upfront planning; fewer wells; supply chain Goal zero:…
  10. Q2 2015 Investor Presentation – Shell – slide 10
    SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 30 July, 2015 11
  11. Q2 2015 Investor Presentation – Shell – slide 11
    Q2 2015 FINANCIAL HIGHLIGHTS Earnings Q2 2014 to Q2 2015 billion Q2 Q2 Environment Choice 2014 2015 billion UPSTREAM 4.7 1.0 DOWNSTREAM (CCS) 1.3 3.0 CORPORATE & MINORITIES 0.1 (0.2) CCS NET EARNINGS 6.1 3.8 CCS EARNINGS, PER…
  12. Q2 2015 Investor Presentation – Shell – slide 12
    SHELL INTEGRATED GAS PERFORMANCE 2014 Shell LNG* sales + pricing linkage Integrated gas earnings Million tonnes per annum billion per unit uniit Short-term 10-15% spot Gas hubs (e.g. NBP, 20-25% HH) Oil linked: Term…
  13. Q2 2015 Investor Presentation – Shell – slide 13
    PULLING LEVERS TO MANAGE SHELL IN THE DOWNTURN Cash performance Pulling our financial levers billion Balance sheet 4Q rolling CFFO Reduce operating costs Pay-out y Investment billion billion Reduce capital investment…
  14. Q2 2015 Investor Presentation – Shell – slide 14
    BALANCE SHEET Cash flow surplus Competitive gearing position billion, 4Q rolling Q2 2015 % Cash flow from operations Capex + equity acc. invest. + acq Shell Peer group Asset sales Dividend and buy back Implementing a…
  15. Q2 2015 Investor Presentation – Shell – slide 15
    REDUCE OPERATING COSTS Operating costs + outlook Continuous improvement drive billion Supply chain re-set -10% Targeted programmes: Oil Products, North- America onshore, North Sea, others Lower overheads: finance, commercial +…
  16. Q2 2015 Investor Presentation – Shell – slide 16
    REDUCE COSTS + SPEND: EXAMPLES North Sea Heavy oil Americas - Resources plays 250 million operating cost 450 million operating 750 million cost savings savings in UK 17% cost savings in 2015 in 14-15 Better wells Staff + contractor…
  17. Q2 2015 Investor Presentation – Shell – slide 17
    REDUCE CAPITAL INVESTMENT Capital investment - sector Capital investment billion, 4Q rolling billion Project re-phasing / deferral Supply chain savings Dilutions + exits -20% -20% Shell Peer group Shell BG Combination…
  18. Q2 2015 Investor Presentation – Shell – slide 18
    PORTFOLIO RESTRUCTURING Resources plays Oil Products Upstream engine Restructuring 77 billion capital employed Copyright of Royal Dutch Shell plc 30 July, 2015 19
  19. Q2 2015 Investor Presentation – Shell – slide 19
    PORTFOLIO RESTRUCTURING DOWNSTREAM ENGINE Cash flow + ROACE Asset sales billion % billion Australia DS Italy DS MLP others Stanlow refinery ShellChile LPG Northwest Europe others Cash flow ROACE (RHS) Asset sales…
  20. Q2 2015 Investor Presentation – Shell – slide 20
    PORTFOLIO RESTRUCTURING RESOURCES PLAYS Russia 8 Lenzitsky W.Canada Germanyy Ukraine 8 8 iast Posidonia nia stu studies tu 8 JAA Changbei Gas Liquids rich 88 Appalachia Turkey m On-stream Tunisia Permian 8 E&A 8 Algeria…
  21. Q2 2015 Investor Presentation – Shell – slide 21
    ASSET SALES Progressing divestments in 2015 despite weaker market Woodside 9.5% Haynesville + Pinedale Elba LNG Australia DS Italy DS UK retail Asset sales add focus Wheatstone LNG MLP others billion BC-10 dilution Nigeria…
  22. Q2 2015 Investor Presentation – Shell – slide 22
    DELIVER NEW PROJECTS + FREE CASH FLOW Top 10 Shell project start-ups 2014+ Potential cash flow in billion Appomattox Bonga NW Cardamom Clair ph2 Gorgon Gumusut-Kakap 70 oil price 90 oil price Capex Kashagan ph1 MarsB…
  23. Q2 2015 Investor Presentation – Shell – slide 23
    BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 30 July, 2015 24
  24. Q2 2015 Investor Presentation – Shell – slide 24
    BG TRANSACTION + UPDATE ROYAL DUTCH SHELL ROYAL PLCSHELL DUTCH Copyright of Royal Dutch Shell plc 30 July, 2015 25
  25. Q2 2015 Investor Presentation – Shell – slide 25
    SHELL + BG SUMMARY Further reduces our cash breakeven Enhanced free cash flow Enhances dividend potential + delivers buy-backs Accelerates our strategy LNG & deep water leader Value uplift from Shell capabilities at larger…
  26. Q2 2015 Investor Presentation – Shell – slide 26
    SHELL + BG: TRANSACTION UPDATE US FTC Transaction approval Announcement CADE approval Early 2016 Complete transaction Q2 Q3 Q4…
  27. Q2 2015 Investor Presentation – Shell – slide 27
    SHELL + BG: DEEP WATER AND LNG Deep water: Brazil LNG thousand boe per day Shell BG Combination QCLNG Shell and Petrobras: leading global deep-water New LNG supply: Atlantic basin + Australia companies Strategic + profitable…
  28. Q2 2015 Investor Presentation – Shell – slide 28
    STEPPING UP ASSET SALES 30 BILLION 2016 - 2018 Asset sales Opportunity to reshape the company billion High grading tail assets Infrastructure + mature positions Refocus by reducing long-term options Identified substantial options…
  29. Q2 2015 Investor Presentation – Shell – slide 29
    REVIEWING LONGER-TERM OPTIONS Actions taken Heavy oil: Carmon Creek development re-phased; Pierre River mine regulatory application withdrawn Nigeria onshore: SPDC divestments: 3 billion (14-15) Iraq: Majnoon review Resources…
  30. Q2 2015 Investor Presentation – Shell – slide 30
    DIVIDEND TRACK RECORD + COMMITMENT Dividend track record Managing dividend through cycle billion Balance sheet capacity Dividend commitment: More levers to pull if macro conditions 2015 1.88 per share deteriorate 2016 at least…
  31. Q2 2015 Investor Presentation – Shell – slide 31
    SPRINGBOARD TO CHANGE SHELL: GROW TO SIMPLIFY Longer term1 billion CFFO/potential Shell Combination Simpler,more in billion 2014 2020 focused company Other Longer term1 10 billion p.a. More resilient + Deep Water…
  32. Q2 2015 Investor Presentation – Shell – slide 32
    CONTINUED DRIVE TO IMPROVE FINANCIAL PERFORMANCE Cash flow from operations Free cash flow billion billion Q215 Q215 Shell Peer group 4Q rolling 4Q rolling ROACE - underlying % Driving competitive performance Q215 4Q…
  33. Q2 2015 Investor Presentation – Shell – slide 33
    SUMMARY Integrated business + performance drive supporting results: 12 months CCS earnings 16.2 billion; CFFO 35.6 billion; dividend + buy-back 14 billion Dividend + buy-back commitment unchanged 1.88/share 2015; at least…
  34. Q2 2015 Investor Presentation – Shell – slide 34
    QUESTIONS & ANSWERS SECOND QUARTER 2015 RESULTS ROYAL DUTCH SHELL 30 JULY 2015 Copyright of Royal Dutch Shell plc 30 July, 2015 35
  35. Q2 2015 Investor Presentation – Shell – slide 35
    UPSTREAM RESULTS Q2 2015 Earnings Q2 2014 to Q2 2015 billion Significant decline in prices Environment Choice Lower volumes: planned maintenance + divestments Lower costs Earnings on CCS basis, excluding identified items.…
  36. Q2 2015 Investor Presentation – Shell – slide 36
    UPSTREAM PERFORMANCE Q2 2015 Production million boe per day Strong operating performance Underlying 3.1 Maintenance in low oil price 3% environment Growth decline 2.8 2.5 Copyright of Royal Dutch Shell plc 30 July,…
  37. Q2 2015 Investor Presentation – Shell – slide 37
    DOWNSTREAM RESULTS Q2 2015 Earnings Q2 2014 to Q2 2015 billion Strong operating performance Self-help programmes Higher realised refining margins Earnings on CCS basis, excluding identified items Copyright of Royal Dutch Shell…
  38. Q2 2015 Investor Presentation – Shell – slide 38
    Q3 2015 OUTLOOK Q3 Q3 OUTLOOK: Upstream Divestment impact: -100 kboe/d Planned maintenance: -33 kboe/d Netherlands gas (NAM) curtailment & underground storage: -80 kboe/d Downstream Refinery availability lower due to…
  39. Q2 2015 Investor Presentation – Shell – slide 39
    SENSITIVITIES 2015 Outlook Brent: 10/bbl Brent +/- 3.3 billion earnings per annum Henry Hub: 1/mmbtu +/- 300 million earnings per annum Tax liability foreign exchange impact to earnings (non-cash; after tax): Australian…
  40. Q2 2015 Investor Presentation – Shell – slide 40
    COMPANY UPDATE SECOND QUARTER 2015 ROYAL DUTCH SHELL 30 JULY 2015 Copyright of Royal Dutch Shell plc 30 July, 2015 41

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