Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q2 2013 Earnings Presentation
24 slides from Shell's earnings presentation, Aug 1, 2013
Slide 1: Delivering Innovative & Competitive Performance: Second Quarter 2013 Results
DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE SECOND QUARTER 2013 RESULTS ROYAL DUTCH SHELL PLC 1 AUGUST 2013 Copyright of Royal Dutch Shell plc 1 August, 2013 1 Lubricants Zhuhai blending and filling plant, China, 2009
Slide 2: Peter Voser, Chief Executive Officer
DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE PETER VOSER CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 1 August, 2013 2 BC-10, offshore Floating Production Storage and Offloading facility, Brazil, 2013
Slide 3: Definitions and Cautionary Note
DEFINITIONS AND 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 i
Slide 4: Summary Q2 2013 Results
SUMMARY Q2 2013 results Q2 underlying earnings $4.6 billion; EPS -21% CFFO $12.4 billion Q2 2013 dividend $0.45 per share Nigeria security challenges Growth delivery Maturing new options 5 major start-ups to come in ‘13-’14: >$4 billion/year CFFO potential* Capital discipline + long te
Slide 5: Nigeria: Large Scale Crude Theft and LNG Supply Disruption
NIGERIA Illegal refinery, Krakrama; October 2012 Fire on the 24” TNP, Bodo West; April 2013 NLNG Blockade, June/July 2013 LARGE SCALE CRUDE THEFT AND ASSOCIATED DAMAGE LNG GAS SUPPLY DISRUPTION + BLOCKADE Copyright of Royal Dutch Shell plc 1 August, 2013 5
Slide 6: Simon Henry, Chief Financial Officer
DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 1 August, 2013 6 FLNG Prelude Keel laying, S Korea, 2013
Slide 7: Prices & Margins
PRICES & MARGINS SHELL OIL & GAS REALISATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS $/barrel $/mscf $/barrel $/tonne Oil US West Coast US ethane Gas (RHS) US Gulf Coast coking Western Europe naphtha Rotterdam complex NE/SE Asia naphtha Singapore Copyright of Royal Dutch Shell plc 1 Au
Slide 8: Q2 2013 Financial Performance
Q2 2013 FINANCIAL PERFORMANCE EARNINGS Q2 2012 TO Q2 2013 Q2 Q2 $ billion 2012 2013 $ billion UPSTREAM 4.5 3.5 DOWNSTREAM (CCS) 1.3 1.2 CORPORATE & MINORITIES -0.1 -0.1 CCS NET EARNINGS 5.7 4.6 CCS EARNINGS, $ PER SHARE 0.92 0.73 CASH FROM OPERATIONS 13.3 12.4 SHARE BUY BACKS 0.9 1.9 DIVIDENDS 2.8 2
Slide 9: Q2 2013 Operational Performance
Q2 2013 OPERATIONAL PERFORMANCE UPSTREAM UPSTREAM million boe/day million tonnes Growth from Pearl GTL, Malaysia and Australia Nigeria sabotage Royalty reporting change Q2-Q2 underlying growth +2% Oil LNG Sales (RHS) Gas DOWNSTREAM DOWNSTREAM % availability volume Chemicals: planned downti
Slide 10: Q2 2013 Earnings and Q3 Outlook
Q2 2013 EARNINGS EARNINGS Q2 2012 TO Q2 2013 $ billion Environment Choice Q3 2013 OUTLOOK CONTINUED NIGERIA DOWNTIME INCREASED UPSTREAM MAINTENANCE: ~35 KBOE/D Q3-Q3 ~$1.3 BILLION EXPLORATION CHARGE HIGHER CHEMICALS AVAILABILITY Q3-Q3 Copyright of Royal Dutch Shell plc 1 August, 2013 10
Slide 11: 12 Months Cash Performance
12 MONTHS CASH PERFORMANCE GROUP UPSTREAM DOWNSTREAM/CORPORATE $ billion $ billion $ billion CFFO ex WC movements Asset Sales Acquisitions Buybacks Working capital movements Capex Dividend BALANCING CASH GENERATION, INVESTMENT + PAYOUT Copyright of Royal Dutch Shell plc 1 August, 2013 11
Slide 12: Upstream Americas Financials
UPSTREAM AMERICAS FINANCIALS BALANCE SHEET FINANCIAL PERFORMANCE (12 MONTHS ROLLING) $ billion $ billion 0 200 400 kboe/day Non productive leases Heavy oil / Arctic Earnings (clean) Production (bottom axis scale) Under construction Deep water Capex 2012 acquisitions On stream Resources plays GROWTH
Slide 13: Portfolio Development Q2 2013
PORTFOLIO DEVELOPMENT Q2 2013 Divestment / Notable discovery / Acquisition / entry FID Start-ups (Project re- option progress framing) G/U Phase 2 (215 kboe/d) Basrah Gas Nigeria FUTURE TNP loop-line Company onshore review OPPORTUNITIES (45 kboe/d) North America RESOURCES review PLAYS Vi
Slide 14: Financial Framework
FINANCIAL FRAMEWORK FREE CASH FLOW AND PAYOUT $ billion 2012-15 OUTLOOK: CFFO $175-$200 BILLION NET CAPEX $120-130 BILLION $ billion 2012-H1 2013 2012-15 Outlook* Cash flow from operations 70 175-200 Free cash flow Dividend Net Capital Investment 49 120-130 Buyback NET DEBT AND GEARING $ billion Gea
Slide 15: Peter Voser, Chief Executive Officer
DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE PETER VOSER CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 1 August, 2013 15 BC-10, offshore Floating Production Storage and Offloading facility, Brazil, 2013
Slide 16: Outlook
OUTLOOK 2013 ORGANIC CAPEX $ billion FUTURE LONGER TERM OPPORTUNITIES RESOURCES PLAYS FINANCIAL MANAGEMENT OF STRONG GROWTH PROJECT PIPELINE PRIORITY DEEP-WATER DIVIDEND COMMITMENT CAPITAL CEILING DRIVES HARD CHOICES INTEGRATED GAS UPSTREAM ENGINES DOWNSTREAM Copyright of Royal Dutch Shell plc
Slide 17: Deep Water Gulf of Mexico Progress H1 2013
DEEP WATER GULF OF MEXICO PROGRESS H1 2013 MARS B TLP SECURED ON LOCATION STONES FINAL INVESTMENT DECISION MAY 2013 Mars B extends Mars field life to 2050+ Gulf of Mexico Lower Tertiary reservoir Mars + satellites ~1 billion boe >250 million boe TLP towed to location in July FPSO design Start
Slide 18: North America Resources Plays: Refocussing Our Shales Portfolio
NORTH AMERICA RESOURCES PLAYS REFOCUSSING OUR SHALES PORTFOLIO CAPEX $ billion LNG Canada LNG to Transport Gas-to-Chemicals Elba LNG LRS Dry gas Gas GTL Divestments Acquisitions Liquids Rich Shales Integration options/projects PRODUCTION million boe per day bcfe per day PORTFOLIO WILL BE REFOCUSED
Slide 19: Future Opportunities: Iraq Gas JV; New SPDC Nigeria Investments
FUTURE OPPORTUNITIES IRAQ GAS JV; NEW SPDC NIGERIA INVESTMENTS BASRAH GAS COMPANY, IRAQ NIGERIA SPDC Divestment completed SPDC JV 2012-13 FIDs NLNG FYIP Gbaran-Ubie phase 2 Southern Swamp TNP loopline Khor Al Zubair NGL plant Basrah, Iraq, Q2 2013 50 km JV commenced operations 1st of May ‘13 $3.
Slide 20: Kashagan Start-up
KASHAGAN START-UP KASHAGAN DEVELOPMENT PHASE 1 OVERVIEW D ISLAND Train 2 Raw gas compressors Well heads Train 1 Utilities Living quarters 50km Kashagan, D island facilities, April 2013 300 kboed average production 2 train development; 2 year ramp-up sequence Shell 16.81%; production operations
Slide 21: Top Project Start-ups '13-'14
TOP 5 PROJECT START-UPS ‘13-’14 FUTURE Kashagan phase 1 Commencing start-up 2013 H2 OPPORTUNITIES Gumusut-Kakap Platform loaded out to final location DEEP-WATER Topsides fitted Mars-B DEEP-WATER TLP secured on location Installation of subsea manifold and Cardamom umbilical completed DEEP-W
Slide 22: Summary Q2 2013 Results
SUMMARY Q2 2013 results Q2 underlying earnings $4.6 billion; EPS -21% CFFO $12.4 billion Q2 2013 dividend $0.45 per share Nigeria security challenges Growth delivery Maturing new options 5 major start-ups to come in ‘13-’14: >$4 billion/year CFFO potential* Capital discipline + long te
Slide 23: Questions & Answers
QUESTIONS & ANSWERS SECOND QUARTER 2013 RESULTS Copyright of Royal Dutch Shell plc 1 August, 2013 23 Groundbirch and Gundy, Canada, Upstream Americas, 2013
Slide 24: Delivering Innovative & Competitive Performance: Second Quarter 2013 Results
DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE SECOND QUARTER 2013 RESULTS ROYAL DUTCH SHELL PLC 1 AUGUST 2013 Copyright of Royal Dutch Shell plc 1 August, 2013 24 Lubricants Zhuhai blending and filling plant, China, 2009