Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q4 2005 Earnings Presentation
15 slides from Shell's earnings presentation, Feb 2, 2006
Slide 1: Q4 2005 Results
Q4 2005 Results 2 February 2006
Slide 2: Disclaimer statement
Disclaimer statement The following presentation contains forward-looking statements that are subject to risk factors associated with the oil, gas, power, chemicals and renewables businesses. It is believed that the expectations reflected in these statements are reasonable, but may be affected by a v
Slide 3: Delivery now and building for the future
Delivery now and building for the future • Record earnings and cash • Good operational performance • Exploration success and access to new resources • LNG growth • Good downstream performance • Focused on delivery • Solid platform for 2006
Slide 4: Delivery now – full year results
Delivery now – full year results 2005 2004 $ billion $ billion Income up 37% 25.3 18.5 CCS* earnings up 30% 22.9 17.6 Cash from operations** up 26% 35.6 28.3 Divestment proceeds 6.6 7.7 Capital investment*** 15.6 13.8 2005 full year dividends per share equivalent to €0.92 * CCS for Oil Products segm
Slide 5: Delivery now – Fourth quarter results
Delivery now – Fourth quarter results Q4 2005 Q4 2004 $ billion $ billion Income 4.4 4.6 CCS* earnings up 3% 5.4 5.2 Basic earnings per share up 6% $0.82 $0.77 Cash from operations** up 10% 7.3 6.7 Divestment proceeds 0.5 4.9 Capital investment*** 5.4 4.8 Dividend per share €0.23 * CCS for Oil Produ
Slide 6: Oil prices and industry margins
Oil prices and industry margins Crude Oil Prices Refining Margins Cracker Margins $/bbl $/bbl $/t 65 20 600 60 500 16 55 400 50 12 300 45 8 200 40 4 100 35 30 0 0 2004 2005 2005 2005 2005 2004 2005 2005 2005 2005 2004 2005 2005 2005 2005 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 •WTI ANS USWC cok
Slide 7: EP: Capturing benefits of high oil and gas prices
EP: Capturing benefits of high oil and gas prices • Good earnings growth $/ boe 12 60% • Strong unit earnings 10 50% 8 40% • Exploration success 6 30% 4 20% • Production in line with guidance 2 10% • Over 2 billion resources added 0 0% Q4 04 Q1 05 Q2 05 Q3 05 Q4 05 EP unit earnings adjusted for non
Slide 8: Continued exploration and new business success in quarter
Continued exploration and new business success in quarter Shell Canada: land purchase Ukraine CA Libya: seismic start up Nigeria OPL 238 Malaysia: Nigeria: 4th Big Ubah Big Cat success Focus Basin cat success Acreage/Deal gained Brazil: Success in 7th Operations/Drilling round Over 2 bln boe of reso
Slide 9: GP: Growing our leading position
GP: Growing our leading position LNG annual volume growth (mt) • Strong earnings 11 • LNG volumes up 5% on 2004 10 • On target for 14% annual capacity increase to 2009 9 • Record annual sales volumes 8 2001 2002 2003 2004 2005
Slide 10: Major portfolio developments in 2005
Major portfolio developments in 2005 Elba Island capacity QatarGas 4 Qalhat LNG NLNG 4/5
Slide 11: Oil Products: delivery continues
Oil Products: delivery continues Oil Products global adjusted unit CCS earnings per barrel* • CCS earnings $1.9 bln 3.0 Shell Competitor range • Continued competitive unit earnings 2.5 • Refinery intake volumes up 2.0 1.5%* 1.5 • Marketing volumes down 4% 1.0 • Strong refining and trading 0.5 perfor
Slide 12: Chemicals: good earnings for the year
Chemicals: good earnings for the year • Nanhai petrochemicals complex delivered on time, on budget • Full year earnings of $1 bln • Cash from operations and divestments over $3 bln • Fourth quarter earnings impacted by lower margins and inventory effects • Asset utilisation 82% impacted by hurricane
Slide 13: Focus on cash
Focus on cash 2005 Cash In $43.0 bln 2005 Cash Out $40.5 bln Working Capital Divestments 6.6 Other 0.5 5.5 Debt Payment 1.6 5.0 RD Minority Payment 1.7 Buy backs 10.6 Dividends DACF 36.4 15.6 Capital Investment Increase in cash $2.5 bln
Slide 14: 2005 delivery
2005 delivery • Unification completed • Implemented strategy of more upstream, profitable downstream • Operational performance improved • Overcame challenges presented by hurricanes • Focused on project delivery • Achieved divestment target • Exceeded target of returning cash to shareholders
Slide 15: Slide 15