Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q3 2009 Earnings Presentation
16 slides from Shell's earnings presentation, Oct 29, 2009
Slide 1: Royal Dutch Shell plc Third Quarter 2009 Results
ROYAL DUTCH SHELL PLC THIRD QUARTER 2009 RESULTS OCTOBER 29TH, 2009
Slide 2: Simon Henry, Chief Financial Officer
ROYAL DUTCH SHELL PLC THIRD QUARTER 2009 RESULTS SIMON HENRY CHIEF FINANCIAL OFFICER 2
Slide 3: Definitions and Cautionary Note
DEFINITIONS AND CAUTIONARY NOTE Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves and SEC proven mining reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil
Slide 4: Q3 2009 Summary
Q3 2009 SUMMARY CHALLENGING INDUSTRY ENVIRONMENT • Good operating performance • CCS earnings $3.0 billion; Q308-Q309 CCS EPS –72% • Cash flow from operations $7.3 billion; Q308-Q309 DPS +5% PRUDENT APPROACH TO ECONOMIC DOWNTURN • Transition 2009 programme on track; ~ $1billion cost reduction achieve
Slide 5: Transition 2009 Programme Update
SHARPER FOCUS ON DELIVERY & AFFORDABILITY: TRANSITION 2009 PROGRAMME UPDATE TOP 600 MANAGERS IN PLACE 31ST JULY Previous structure……. ……new top level structure 1st July 2009 • 20% reduction in senior management positions CEO E&P • New financial reporting structure Q3 2009 UPSTREAM INTERNATIONAL GAS
Slide 6: Portfolio Progress Q3 2009
PORTFOLIO PROGRESS Q3 2009 OIL SANDS • Progressing funding for CCS Project Quest • >1 mtpa capacity potential ORMEN LANGE • Daily peak production achieved ~420 kboe/d • Shell 17.2% VITO SAKHALIN II • Sub-salt oil discovery •Daily peak production achieved • Mississippi Canyon GoM >400 kboe/d in Octob
Slide 7: Sakhalin II Ramp Up
SAKHALIN II RAMP UP RAMPING UP TO FULL CAPACITY LNG CARGOES SHIPPED KBOE/D CUMULATIVE LNG CARGOS FIRST 9 MONTHS 2009PROCESSING FACILITY ONSHORE 400 60 300 40 200 20 100 0 0 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Jan Feb Mar Apr May Jun Jul Aug Sep OIL PRODUCTION) GAS PRODUCTION CARGO DESTINATIONS
Slide 8: Prices and Margins
PRICES AND MARGINS OIL & GAS PRICES INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS* $/BBL $/MMBtu $/BBL $/T 140 12 14 1600 12 1300 120 10 10 1000 100 8 8 700 6 80 6 400 4 60 4 100 2 40 2 0 -200 Q308 Q408 Q109 Q209 Q309 Q308 Q408 Q109 Q209 Q309 Q308 Q408 Q109 Q209 Q309 -2 BRENT HENRY HUB ($/MMB
Slide 9: Q3 2009 Financial Highlights
Q3 2009 FINANCIAL HIGHLIGHTS EARNINGS ($ BLN) Q3 2009 VERSUS Q3 2008 ($ BLN) Q3 09 Q3 08 UPSTREAM 1.7 6.3 8 DOWNSTREAM 0.8 2.0 BUSINESS SEGMENTS TOTAL 2.4 8.3 CORPORATE & MINORITIES 0.2 (0.2) 6 NET EARNINGS 2.6 8.1 EARNINGS PER SHARE 0.43 1.32 DIVIDEND PER SHARE 0.42 0.40 4 Q3 09 Q3 08 2 CASH FROM O
Slide 10: Upstream Performance
UPSTREAM PERFORMANCE EARNINGS OIL & GAS PRODUCTION $ BLN MLN BOE/D MLN TONNES 7 4 4 6 3 3 5 4 2 2 3 2 1 1 1 0 0 0 Q308 Q408 Q109 Q209 Q309 Q308 Q408 Q109 Q209 Q309 -1 INTEGRATED GAS GAS LNG SALES (MLN TONNES) OTHER UPSTREAM OIL Excluding Identified Items 10
Slide 11: Downstream Performance
DOWNSTREAM PERFORMANCE CCS EARNINGS AVAILABILITY AND SALES VOLUMES $ BILLION % AVAILABILITY VOLUME 100 7 2.5 95 6 2 90 1.5 5 85 1 4 80 0.5 0 75 3 Q308 Q408 Q109 Q209 Q309 Q308 Q408 Q109 Q209 Q309 -0.5 OIL PRODUCTS REFINERY AVAILABILITY OIL PRODUCT SALES (MLN BBLS/D) CHEMICALS CHEMICALS AVAILABILITY
Slide 12: Cash Performance 12 Months
CASH PERFORMANCE 12 MONTHS BUSINESS GROUP $ BLN $ BLN 30 50 UPSTREAM DOWNSTREAM SOURCES USES SOURCES USES 25 40 20 30 15 SOURCES USES 20 10 10 5 0 0 CASH FLOW FROM OPERATIONS ACQUISITIONS ASSET SALES ORGANIC CAPITAL SPENDING PAY OUT 12
Slide 13: Progressing with Cost Reduction
PROGRESSING WITH COST REDUCTION COST DEVELOPMENT $ BILLION 35 • Transition 2009 Programme 30 • Simplification, standardization, outsourcing 25 20 • Supply chain + discretionary spend 15 • Utilization + energy costs 10 5 0 • 9M-9M REDUCTION ~ $1 BILLION* 9M 2008 9M 2009 PRODUCTION & MANUFACTURING EXP
Slide 14: Q3 2009 Summary
Q3 2009 SUMMARY CHALLENGING INDUSTRY ENVIRONMENT • Good operating performance • CCS earnings $3.0 billion; Q308-Q309 CCS EPS –72% • Cash flow from operations $7.3 billion; Q308-Q309 DPS +5% PRUDENT APPROACH TO ECONOMIC DOWNTURN • Transition 2009 programme on track; ~ $1billion cost reduction achieve
Slide 15: Q&A
ROYAL DUTCH SHELL PLC THIRD QUARTER 2009 RESULTS Q&A
Slide 16: Royal Dutch Shell plc Third Quarter 2009 Results
ROYAL DUTCH SHELL PLC THIRD QUARTER 2009 RESULTS OCTOBER 29TH, 2009