Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q1 2014 Earnings Presentation
18 slides from Shell's earnings presentation, Apr 30, 2014
Slide 1: Balancing Growth & Returns: First Quarter 2014 Results
BALANCING GROWTH & RETURNS FIRST QUARTER 2014 RESULTS 30 APRIL 2014 ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 30 April, 2014 1
Slide 2: Simon Henry, Chief Financial Officer
SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 30 April, 2014 2
Slide 3: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its
Slide 4: 2014 Priorities
2014 PRIORITIES Q1 2014 DELIVERY CCS earnings $7.3 billion Improve our financial Cash flow from operations $14 billion performance Increasing our dividend: Q1 2014 $0.47 per share, +4.4% Taking hard choices on portfolio Enhance our capital efficiency $4.5 billion asset sales announced year
Slide 5: Prices & Margins
PRICES & MARGINS Shell oil & gas realisations Industry refining margins Industry chemicals margins $/barrel $/mscf $/barrel $/tonne 8 12 1000 110 9 800 7 6 600 100 3 400 6 90 0 200 80 5 -3 0 Q113 Q213 Q313 Q413 Q114 Q113 Q213 Q313 Q413 Q114 Q113 Q213 Q313 Q413 Q114 Oil US West Coast US ethane Gas (R
Slide 6: Q1 2014 Financial Highlights
Q1 2014 FINANCIAL HIGHLIGHTS Earnings Q1 2013 to Q1 2014 Earnings Q1 2013 to Q1 2014 $ billion Q1 Q1 2013 2014 $ billion 8 0.1 (0.3) (0.0) UPSTREAM 5.7 5.7 DOWNSTREAM (CCS) 1.8 1.6 6 CORPORATE & MINORITIES 0.0 0.0 CCS NET EARNINGS 7.5 7.3 4 7.3 7.5 CCS EARNINGS, $ PER SHARE 1.19 1.17 2 CASH FROM OPE
Slide 7: Q1 2014 Financial Drivers
Q1 2014 FINANCIAL DRIVERS Group earnings Q1 2013 to Q1 2014 $ billion Environment Choice 8 0.4 (0.3) 0.1 (0.1) 0.1 (0.2) (0.2) (0.1) 6 7.3 7.5 4 Underlying EPS -2% Broadly similar environment Q1 – Q1 Earnings CCS basis, Earnings excluding identified items Copyright of Royal Dutch Shell plc 30 Ap
Slide 8: Integrated Gas Performance
INTEGRATED GAS PERFORMANCE Record earnings Q1 14 Shell’s LNG portfolio High operational availability + strong trading contribution Spain Sakhalin Cove Point Elba Repsol LNG business Baja QG-4 successfully integrated Altamira Hazira Oman Nigeria Brunei Atlantic LNG Malaysia Prelude LNG Peru Gor
Slide 9: Upstream Performance Q1 2014
UPSTREAM PERFORMANCE Q1 2014 Earnings + cash flow Exploration expense $ billion $ billion (pre-tax) 6 2 10 1 6 2 2 0 Q113 Q213 Q313 Q413 Q114 Q113 Q213 Q313 Q413 Q114 -2 -2 Upstream International Upstream International Upstream Americas Upstream Americas Cash flow from operations (RHS) Oil and gas p
Slide 10: Downstream – Restructuring Our Portfolio
DOWNSTREAM – RESTRUCTURING OUR PORTFOLIO Addressing underperforming portfolio Updated view on macro: Growth in LRS Keep and grow Industry gasoline surplus Industry refinery overbuild Attractiveness ~ $2.6 billion Q1 2014 impairment mainly on Fix or divest refinery portfolio 14% of refini
Slide 11: Downstream Performance Q1 2014
DOWNSTREAM PERFORMANCE Q1 2014 Earnings Cash flow $ billion $ billion 2 4 2 1 0 Q113 Q213 Q313 Q413 Q114 0 -2 Q113 Q213 Q313 Q413 Q114 Oil Products Chemicals -4 CFFO excl w/c movements CFFO Working capital movements Availability and sales volumes % Sales volume 100 7 Q2 – Q2 OUTLOOK: 95 6 Reduced
Slide 12: Cash Performance + Payout
CASH PERFORMANCE + PAYOUT CFFO 12 months rolling Group 12 months cash performance $ billion $ billion $ billion 50 15 Uses 60 40 Sources 10 40 30 20 5 20 10 0 0 0 Q113 Q213 Q313 Q413 Q114 Upstream Corporate Free cashflow (RHS) CFFO Capex Dividend Downstream Free cashflow Q114 (RHS) Asset sales Acqui
Slide 13: Competitive Performance: Balancing Growth and Returns
COMPETITIVE PERFORMANCE: BALANCING GROWTH AND RETURNS 4Q ROLLING Cash flow from operations Free cash flow $ billion, 4Q rolling $ billion 60 60 50 50 40 40 30 30 20 20 10 10 - 0 2010 2011 2012 2013 Q114 2010 2011 2012 2013 Q114 (10) ROACE – reported ROACE – underlying % % 30% 30% 20% 20% 10% 10% 0%
Slide 14: Portfolio Development Q1 2014
PORTFOLIO DEVELOPMENT Q1 2014 Divestment / Exploration/ option progress FID Start-ups (Project re-framing) Norway Italy Australia DOWNSTREAM Denmark Engines ENGINE ML South UPSTREAM ENGINE LNG Canada – FEED (12 mtpa) Repsol LNG integration Wheatstone LNG Lympstone gas (Arrow LNG)
Slide 15: Deliver New Projects: Start-ups 2014
DELIVER NEW PROJECTS: START-UPS 2014 Majnoon (Shell 45%) Mars B – February 2014 start-up (Shell 71.5%) 225 kboed 40 kboed 150 30 20 75 10 0 0 Nov-13 Oct-13 Dec-13 Feb-14 Mar-14 Apr-14 Jan-14 kboed J F M A Start-up in Q3 2013 - currently producing >200 First oil more than 6 months ahead of schedu
Slide 16: 2014 Priorities
2014 PRIORITIES Q1 2014 DELIVERY CCS earnings $7.3 billion Improve our financial Cash flow from operations $14 billion performance Increasing our dividend: Q1 2014 $0.47 per share, +4.4% Taking hard choices on portfolio Enhance our capital efficiency $4.5 billion asset sales announced year
Slide 17: Questions & Answers
QUESTIONS & ANSWERS FIRST QUARTER 2014 RESULTS Copyright of Royal Dutch Shell plc 30 April, 2014 17
Slide 18: Balancing Growth & Returns: First Quarter 2014 Results
BALANCING GROWTH & RETURNS FIRST QUARTER 2014 RESULTS 30 APRIL 2014 ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 30 April, 2014 18