Barclays Capital CEO Energy Power Conference – Shell

Shell · Sep 8, 2015 · 25 slides

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COMPANY UPDATE BARCLAYS CEO ENERGY-POWER CONFERENCE ROYAL DUTCH SHELL 8 SEPTEMBER 2015 Copyright of Royal Dutch Shell plc 8 September, 2015 1
BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 8 September, 2015 2
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 1.88/share 2015; at least 1.88/share 2016 At…
OIL PRICE + OUTLOOK Oil prices OPEC policy change and non-OPEC growth Brent in per barrel 120 Medium-term supply/demand fundamentals remain positive 100 Responding with urgency + determination 80 Resilience in todays oil prices…
H1 2015 DELIVERY Earnings + ROACE Cash flow billion % billion billion 30 15 50 25 40 20 20 10 30 15 10 5 20 10 10 5 0 0 0 0 2011 2012 2013 2014 H1 2015 2011 2012 2013 2014 H1 2015 4Q rolling 4Q rolling -10 -5 Upstream…
SHELL INTEGRATED GAS PERFORMANCE 2014 Shell LNG* sales + pricing linkage Integrated gas earnings Million tonnes per annum billion per unit 3.5 3.5 120 120 45 Short-term 10-15% spot 40 30 3 100 100 Gas hubs 20-25% 35 (e.g.…
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…
PULLING LEVERS TO MANAGE SHELL IN THE DOWNTURN Cash performance Pulling our financial levers billion 50 25 Balance sheet 0 2010 2011 2012 2013 2014 15Q2 4Q rolling CFFO Reduce operating costs Pay-out Investment billion…
BALANCE SHEET Cash flow surplus Competitive gearing position billion, 4Q rolling Q2 2015 % 50 30 20 25 10 0 0 -10 2011 2012 2013 2014 2015 Cash flow from operations Capex + equity acc. invest. + acq Shell Peer…
REDUCE OPERATING COSTS Operating costs + outlook Continuous improvement drive billion 50 Supply chain re-set -10% Targeted programmes: Oil Products, North- America onshore, North Sea, others 25 Lower overheads: finance, commercial +…
REDUCE CAPITAL INVESTMENT Capital investment - sector Capital investment billion, 4Q rolling billion Project re-phasing / deferral 60 60 Supply chain savings Dilutions + exits 40 40 -20% -20% 20 20 0 0 2011 2012 2013…
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 Bonga South West Arrow greenfield LNG…
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:…
PORTFOLIO RESTRUCTURING Resources plays Oil Products Upstream engine Restructuring 77 billion capital employed Copyright of Royal Dutch Shell plc 8 September, 2015 15
PROGRESS WITH RESTRUCTURING Downstream Resources plays billion % billion 15 15 -30% 6 10 10 -35% 4 5 5 2 0 0 0 2011 2012 2013 2014 Q215 2013 2014 2015E 4Q rolling Cash flow ROACE (RHS) Americas International Potential…
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 onshore…
DELIVER NEW PROJECTS + FREE CASH FLOW Top 10 Shell project start-ups 2014+ Potential cash flow in billion 10 Appomattox Bonga NW 5 0 Cardamom Clair ph2 -5 -10 Gorgon Gumusut-Kakap 2010 2010 2012 2012 2014 2014…
DEEP WATER GULF OF MEXICO INVESTING IN ATTRACTIVE GROWTH Stones FID 2013 Appomattox FID 2015 50 kboe/d FPSO delivery to Gulf in Q1 2016 175 kboe/d Initial two subsea wells drilled to TD 650 million boe resources 2016 start-up…
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…
SHELL + BG: TRANSACTION UPDATE US FTC Transaction approval Announcement CADE approval Early 2016 Complete transaction Q2 Q3 Q4…
SPRINGBOARD TO CHANGE SHELL: GROW TO SIMPLIFY Longer term 1 billion CFFO/potential Shell Combination Simpler,more in billion 2014 2020 200 focused company Other Longer term 1 10 billion p.a. More resilient + 150 Deep Water…
SHELL + BG: DEEP WATER AND LNG Deep water: Brazil LNG thousand boe per day 600 400 200 0 2014 Combined potential end of decade Shell BG Combination QCLNG Shell and Petrobras: leading global deep-water New LNG supply:…
DIVIDEND TRACK RECORD + COMMITMENT Dividend track record Managing dividend through cycle billion 12 Balance sheet capacity 8 Dividend commitment: More levers to pull if macro conditions 2015 1.88 per share deteriorate 2016 at…
CONTINUED DRIVE TO IMPROVE FINANCIAL PERFORMANCE Cash flow from operations Free cash flow billion billion 60 40 30 40 20 20 10 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Q215 -10 Q215 Shell Peer group 4Q rolling 4Q…
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 1.88/share 2015; at least 1.88/share 2016 At…

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