Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q4 2006 Earnings Presentation
16 slides from Shell's earnings presentation, Feb 1, 2007
Slide 1: Delivery and Growth: Leveraging a Strong Portfolio
DELIVERY AND GROWTH LEVERAGING A STRONG PORTFOLIO ROYAL DUTCH SHELL PLC 1 FEBRUARY 2007
Slide 2: Jeroen van der Veer, Chief Executive
DELIVERY AND GROWTH LEVERAGING A STRONG PORTFOLIO JEROEN VAN DER VEER CHIEF EXECUTIVE
Slide 3: Disclaimer Statement
DISCLAIMER STATEMENT This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking s
Slide 4: Strategy on Track
STRATEGY ON TRACK STRATEGY CONTEXT MORE UPSTREAM, GROWTH ENERGY DEMAND PROFITABLE DOWNSTREAM • Cash generation + reinvestment • Portfolio choices • Environment + sustainability • Unconventionals + renewables • Competition COMPETITIVE • Downstream includes chemicals RETURNS PRIORITIES DELIVERY + GROW
Slide 5: Major Growth Hubs and Key Progress
MAJOR GROWTH HUBS AND KEY PROGRESS AOSP / Peace River Sakhalin In-Situ acquisitions Sakhalin/ Ormen Lange Shell Canada offer Gazprom France downstream Kashagan California downstream Pinedale review China lubes divestment and bitumen Port Arthur Pearl Qatargas 4 MAJOR GROWTH HUBS Singapore chemicals
Slide 6: Portfolio Developments
PORTFOLIO DEVELOPMENTS SHELL DOWNSTREAM PORTFOLIO DEVELOPMENT SHELL UPSTREAM PORTFOLIO DEVELOPMENT Refining capacity million b/d Oil & gas production million boe/d 5 5 4 4 EUROPEAN REFINERY RATIONALISATION 3 3 ENTERPRISE OIL OIL SANDS DEA ACQUISITION 4D SEISMIC 2 2 HORIZONTAL DRILLING TEXACO ACQUISI
Slide 7: Peter Voser, Chief Financial Officer
DELIVERY AND GROWTH LEVERAGING A STRONG PORTFOLIO PETER VOSER CHIEF FINANCIAL OFFICER
Slide 8: Q4 2006 Results Highlights
Q4 2006 RESULTS HIGHLIGHTS Q4 Q4 2006 2005 2006 2005 $ bln $ bln $ bln $ bln CCS EARNINGS 6.0 5.4 +11% 25.4 22.7 +12% CASH FROM OPERATIONS* 8.8 7.3 +19% 39.5 35.6 +11% BASIC CCS EPS (US$) 0.95 0.83 +14% 3.96 3.41 +16% DIVIDEND PER SHARE (€) 0.25 0.23 +9% 1.00 0.92 +9% SHARE BUY BACKS 1.4 2.6 8.2 5.0
Slide 9: Investing for the Future
INVESTING FOR THE FUTURE 2007-08 Average organic capital investment ~80% SPENDING UPSTREAM UPSTREAM • New growth hubs • Unconventionals growth • Integrated assets ASSET INTEGRITY • Safety • Reliability EXPLORATION DOWNSTREAM GROWTH UPSTREAM GROWTH BASE UPGRADING, LNG LIQUEFACTION, GTL GROWTH 8
Slide 10: Delivering New Resources
DELIVERING NEW RESOURCES EXPLORATION AVERAGING >1 BILLION BOE/YEAR Beaufort Sea US & Canada Canada Acreage, BlackRock 19th Round Orphan Basin Onyx SW NA Gas Plays Kazakhstan Ukraine Colorado Permits Tunisia GoM Algeria S. Texas swap Libya Qatar Ubah Venezuela East Sabah Kolo Creek Crux Bobo Australi
Slide 11: Strong Performance on Reserves and Resources
STRONG PERFORMANCE ON RESERVES* AND RESOURCES 2005/2006 PERFORMANCE (BILLION BOE) 2005 2006 2005/06 • Significant & diverse Exploration & Business resource base Development resource 2+ 2+ >200% additions • Full replacement of Reserves additions reserves and resources 1.0 2.0 >100% longer term Produc
Slide 12: Consistent Strategy: Profitability & Growth
CONSISTENT STRATEGY: PROFITABILITY & GROWTH • Strategy unchanged • Successful track record • Global capabilities and market presence • New technologies • Strong growth portfolio 11
Slide 13: Strategy on Track: 2006 Achievements
STRATEGY ON TRACK 2006 ACHIEVEMENTS • Divest underperforming/ RESHAPE THE non strategic assets • Earnings $ 8.1 bln PORTFOLIO • Strategic manufacturing growth • Moving East • China - Lubes and Bitumen acquisitions • Brand preference leader CUSTOMER • Differentiated fuels • Turkey retail JV FOCUS TEC
Slide 14: Summary
SUMMARY 2006 FINANCIAL PERFORMANCE • CCS earnings $25.4 bln • Returns to shareholders $16.3 bln • Strong environment and operating performance DELIVERY AND GROWTH IN 2006 • Reserves* replacement ~150% • Successful exploration and business development; >2 bln boe new resources • 11 growth project sta
Slide 15: Questions & Answers
DELIVERY AND GROWTH LEVERAGING A STRONG PORTFOLIO QUESTIONS & ANSWERS
Slide 16: Royal Dutch Shell plc
DELIVERY AND GROWTH LEVERAGING A STRONG PORTFOLIO ROYAL DUTCH SHELL PLC