Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q3 2017 Earnings Presentation
23 slides from Shell's earnings presentation, Nov 2, 2017
Slide 1: Third quarter 2017 results
Third quarter 2017 results Re-shaping Shell, to create a world-class investment case Royal Dutch Shell plc November 2, 2017 #makethefuture Royal Dutch Shell November 2, 2017
Slide 2: Jessica Uhl, Chief Financial Officer
Jessica Uhl Chief Financial Officer Royal Dutch Shell Royal Dutch Shell November 2, 2017
Slide 3: Definitions & cautionary note
Definitions & Underlying operating cost is defined as operating cost less identified items. A reconciliation can be found in the quarterly results announcement. Divestments. A reconciliation can be found in the quarterly results announcement. cautionary note The companies in which Royal Dutch Shell
Slide 4: Summary: Q3 2017 cash momentum
Summary Q3 2017 – cash momentum Underlying CCS earnings $4.1 billion CFFO excl. working capital $10 billion Free cash flow $3.7 billion World-class Q317 dividend $0.47 per share investment case FCF/share + ROCE growth Leader: value Conservative financial + influence management Q3 2017 –
Slide 5: Portfolio highlights
Q3 2017 Portfolio highlights Gbaran-Ubie – Phase 2 Mexico – Retail country entry Prelude sail away – arrived in Australia Appomattox hull arrival USGC Royal Dutch Shell November 2, 2017 5
Slide 6: Prices & margins
Q3 2017 Shell oil & gas realisations Industry refining margins Industry chemicals margins Prices & 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 Royal Dutch Shell November 2, 2
Slide 7: Financial highlights
Q3 2017 $ billion Q3 2016 Q3 2017 Earnings Q3 2016 to Q3 2017 Financial Upstream 0.0 0.6 $ billion highlights Integrated Gas 0.9 1.3 Downstream (CCS) 2.1 2.7 Corporate & (0.2) (0.4) non-controlling interest CCS net earnings 2.8 4.1 CCS earnings, $ per share 0.35 0.50 Cash flow from operations 8.5 7.
Slide 8: Cash momentum
Q3 2017 $ billion $ billion Cash momentum $107 $51 Strong cash flow momentum continued from 2016 into 2017 CFFO excluding working Cash flow from operations excluding working capital capital (4 quarters rolling): Cash flow from operations excluding working capital – 4 quarters rolling (RHS) $40 b
Slide 9: Oil and gas production + LNG liquefaction
Q3 2017 Upstream + Integrated Gas – oil & gas LNG liquefaction volumes Oil and gas Million boe per day Million tonnes production + 4.00 LNG liquefaction volumes 3.75 3.50 3.25 3.00 Royal Dutch Shell November 2, 2017 9
Slide 10: Earnings
Q3 2017 Earnings Q3 2016 to Q3 2017 Earnings $ billion Royal Dutch Shell November 2, 2017 10
Slide 11: Chemicals: financial and competitive performance
Financial and competitive Earnings – Chemicals Competitive performance – ROACE 4Q rolling performance $ billion $/barrel % Chemicals Average: $104 CHEMICALS Average: $49 Improve base business 13Q1 14Q1 15Q1 16Q1 17Q2 Expand current base Earnings Average Brent oil price (RHS) Shell Peer group por
Slide 12: Chemicals: growth projects
Growth projects Ethylene capacity Under construction Chemicals Million metric tonnes Pennsylvania 425,000 metric tonnes per cracker annum additional Alpha Olefins Bukom capacity start-up Nanhai I USGC Nanhai II Geismar, USA restructuring SADAF exit CHEMICALS New liquids cracker and derivatives u
Slide 13: Cash performance + Divestments
Q3 2017 Sources and uses of cash – 17Q3 4Q rolling Divestments Cash $ billion $ billion performance + Divestments Divestments 2016 – 2017 to date: Completed: $20 billion Announced: $2 billion Integrated gas In progress: >$5 billion Interest paid Upstream Debt repayments & Downstream/Corporate
Slide 14: Net debt + Dividend
Q3 2017 Net debt + gearing Dividend + gearing Net debt + $ billion % $ billion % Dividend -$10 billion DOWNSTREAM /CORPORATE IG UPSTREAM S&P credit rating upgrade: A+ Net debt Gearing (RHS) Dividend Buy-backs Gearing (RHS) Royal Dutch Shell November 2, 2017 14
Slide 15: Cash flow priorities 2016-18
Cash flow priorities 2016-18 1 2 3 Priorities Buy-backs Debt reduction Dividends for cash & capital investment Reduce capital Reduce Deliver new Divestments investment operating costs projects Royal Dutch Shell November 2, 2017 15
Slide 16: Summary: Q3 2017 cash momentum
Summary Q3 2017 – cash momentum Underlying CCS earnings $4.1 billion CFFO excl. working capital $10 billion Free cash flow $3.7 billion World-class Q317 dividend $0.47 per share investment case FCF/share + ROCE growth Leader: value Conservative financial + influence management Q3 2017 –
Slide 17: Questions & Answers
Questions & Answers Jessica Uhl Chief Financial Officer Royal Dutch Shell November 2, 2017 17
Slide 18: Third quarter 2017 results
Third quarter 2017 results Re-shaping Shell, to create a world-class investment case Royal Dutch Shell plc November 2, 2017 #makethefuture Royal Dutch Shell November 2, 2017
Slide 19: Q4 2017 Outlook
Q4 2017 Q4 – Q4 OUTLOOK: Year-ago baseline reflects Shell’s earnings seasonality Outlook Integrated gas Gorgon and portfolio impacts: positive impact of ~90 kboe/d Upstream Divestment impact: reduction of ~250 kboe/d Maintenance: negative impact of ~40 kboe/d Lower production in the Neth
Slide 20: Upstream results – cash flow momentum
Q3 2017 Earnings Q3 2016 to Q3 2017 Cash flow momentum Upstream results $ billion $ billion $ billion – cash flow momentum $42 $51 0.5 0 Earnings Cash flow from operations excluding working capital Cash flow from operations excluding working capital – 4-quarters rolling (RHS) Average Brent oil price
Slide 21: Integrated Gas results – cash flow momentum
Q3 2017 Earnings Q3 2016 to Q3 2017 Cash flow momentum Integrated Gas $ billion $ billion $ billion results – cash flow momentum Earnings Cash flow from operations excluding working capital Cash flow from operations excluding working capital – 4-quarters rolling (RHS) Earnings on CCS basis, excludin
Slide 22: Downstream results – cash flow momentum
Q3 2017 Earnings Q3 2016 to Q3 2017 Cash flow momentum Downstream $ billion $ billion $ billion results – cash flow momentum Earnings Cash flow from operations excluding working capital Cash flow from operations excluding working capital – 4-quarters rolling (RHS) Earnings on CCS basis, excluding id
Slide 23: Royal Dutch Shell November 2, 2017
Royal Dutch Shell November 2, 2017