Shell PLC · LSE:SHEL

Shell — Shell Refining Company (Federation of Malaya) Berhad — Q1 2008 Earnings Presentation

33 slides from Shell's earnings presentation, 2008

  1. Slide 1: Shell Refining Company (FOM) Berhad Quarter 1 2008 Investor Briefing

    Shell Refining Company (FOM) Berhad Quarter 1 2008 Investor Briefing Shell Refining Company (Federation Of Malaya) Berhad

  2. Slide 2: Disclaimer Statement

    DISCLAIMER STATEMENT This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking s

  3. Slide 3: SRC's Refinery in Port Dickson

    SRC’s Refinery in Port Dickson Shell Refining Company (Federation Of Malaya) Berhad

  4. Slide 4: Brief history, dimensions & Corporate info

    Brief history, dimensions & Corporate info 1963 1967 1974 1982 1988 1991 1993 1999 Debottleneck CD No. 2 Debottleneck CD No. 2 to 105 kbbl/d New to 105 kbbl/d New2020kbbl/day kbbl/day ... 75 kbbl/d ... 75 kbbl/d Hydroskimming Debottleneck Hydroskimming Debottleneck Refinery to 90 kbbl/d Refinery to

  5. Slide 5: The LRCC

    PRE LRCC POST LRCC 105,000 barrels per day 125,000 barrels per day Propylene LPG Crude Oil Petrol LPG Petrol Kerosine/ Kerosine/ Jet Fuel Jet Fuel Diesel Diesel Marine & Fuel Oil Power Fuel Components Bitumen Sulphur The LRCC: • Enabled premium products to be produced – V-Power, Propylene • Quadrupl

  6. Slide 6: Market Trends

    Market Trends Shell Refining Company (Federation Of Malaya) Berhad

  7. Slide 7: Crude Price Trend

    Crude Price Trend USD/bbl TAPIS MINAS 115 105 95 85 75 65 55 45 35 25 4 5 6 7 04 05 06 07 08 l-0 l-0 l-0 l-0 n- n- n- n- n- Ju Ju Ju Ju Ja Ja Ja Ja Ja Sources: Mean of PLATTS Prices (MOPS) Shell Refining Company (Federation Of Malaya) Berhad

  8. Slide 8: Tapis - Oil Products Spread

    Tapis - Oil Products Spread USD/bbl Tapis ULG97 Gasoil 135 125 115 105 95 85 75 65 55 45 35 25 4 5 6 7 04 05 06 07 08 l-0 l-0 l-0 l-0 n- n- n- n- n- Ju Ju Ju Ju Ja Ja Ja Ja Ja Sources: Mean of PLATTS Prices (MOPS) Shell Refining Company (Federation Of Malaya) Berhad

  9. Slide 9: Refining Margin Composition

    Refining Margin Composition Malaysia location & quality premium Crude cost Margin /bbl Singapore product value Freight cost Refinery operating costs Gross Refinery margin Net Refinery margin Shell Refining Company (Federation Of Malaya) Berhad

  10. Slide 10: Singapore Refinery Margins - Complex Vs. Simple

    Singapore Refinery Margins+ – Complex Vs. Simple* USD/bbl Singapore Refining Margin (2007-2008) 9.00 4.26 USD/bbl 5.03 USD/bbl 3.43 USD/bbl 3.76 USD/bbl 2.40 USD/bbl 7.00 5.00 3.00 1.00 Nov-07 Feb-07 Apr-07 May-07 Aug-07 Feb-08 Dec-07 -1.00 Jan-07 Mar-07 Jun-07 Jul-07 Sep-07 Oct-07 Jan-08 Mar-08 -3.

  11. Slide 11: SRC Refinery Margins - Complex Vs. Simple

    SRC Refinery Margins+ – Complex Vs. Simple* USD/bbl Shell Refining Company - Refining Margins (2007-2008) 9.00 6.50 USD/bb 6.50 USD/bb 7.23 USD/bbl 7.23 USD/bbl 5.08 USD/bbl 5.08 USD/bbl 4.47 USD/bbl 4.47 USD/bbl 5.81 USD/bbl 5.81 USD/bbl 7.00 5.00 3.00 1.00 Nov-07 Feb-07 Apr-07 May-07 Aug-07 Dec-07

  12. Slide 12: SRC Performance

    SRC Performance Shell Refining Company (Federation Of Malaya) Berhad

  13. Slide 13: SRC Refinery Intake - Sources of Supply

    SRC Refinery Intake – Sources of Supply 2007 YTD Q1 08 Middle East 17% Middle East Malaysia 22% Malaysia 32% 34% Far East & Far East & Africa (excl. Africa (excl. M'sia) M'sia) 51% 44% • SRC’s crude procurement decisions are dependant on the relative economic attractiveness to optimise refining marg

  14. Slide 14: Malaysian Oil Products Demand

    Malaysian Oil Products Demand Malaysian Demand Mix YTD Q1 08 SRC Sales YTD Q1 08 Gasoil Tops Fuel Oil 35% Propylene 5% Fuel Oil 0% 3% 8% LPG Bitumen 9% Gasoil Others 34% 2% LCO Jet Fuel 1% 7% 9% LPG Jet Fuel 7% 8% Motor Motor Gasoline Gasoline 34% 38% Total Malaysian Demand 2007 = 477 kbbl/day Total

  15. Slide 15: SRC Average Production Volume Per Day

    SRC Average Production Volume Per Day 2004-2008 115 110 '000 bpd 115.5 105 111.7 111.8 109.2 108.2 106.1 100 95 2004 2005 2006 2007 YTD Q1 07 YTD Q1 08 * Increase by 7% in Q1 08 vs Q1 07 due to higher planned downtime events in 07 Shell Refining Company (Federation Of Malaya) Berhad

  16. Slide 16: SRC Average Production Volume Per Day by Quarter

    SRC Average Production Volume Per Day by Quarter Q1 07 - planned downtime 115 related to statutory inspection on the Complex-1 units. 110 115.7 115.5 '000 bpd Q2 07 - unplanned downtime 105 112.8 110.6 involved the LRCCU Complex. 108.2 100 Q4 07 - unplanned downtime due to 2 fire incidents. 95 Qtr 1

  17. Slide 17: SRC Revenue

    SRC Revenue Note: 12,000 11,415 2006 : Products prices increased 10,887 from March-August 06 and settled 9,695 lower for the rest of the year. 9,000 7,511 2007 : Higher sales proceeds due to higher gasoline and Gasoil RM millions prices. 6,000 Q1 08 vs Q1 07: Revenue up by 3,427 56%, contributed by

  18. Slide 18: SRC Profit after Taxation

    SRC Profit after Taxation 593 12,000 258 522 10,500 9,000 670 RM Millions 7,500 10,887 11,415 6,000 9,695 4,500 7,511 123 3,000 137 3,427 2,191 1,500 2004 2005 2006 2007 YTD Q1 07 YTD Q1 08 Revenue Profit After Tax Q1 08 vs Q1 07: Lower refining margins and stockholding gains contributed to lower Pr

  19. Slide 19: SRC Profit and Stockholding Gain after Tax by Quarter

    SRC Profit and Stockholding Gain after Tax by Quarter 593 600 500 400 RM Millions 295 300 200 168 159 137 129 123 163 100 44 40 49 27 0 Q1 07 Q2 07 Q3 07 Q4 07 2007 Q1 08 Profit After Tax Stockholding Gain Net of Tax Stockholding gain which contributed to Profit After Tax: Q1 08 MYR 27mil vs Q1 07 M

  20. Slide 20: SRC Earnings Per Share

    SRC Earnings Per Share 250 200 Sen per share 150 223 100 198 174 50 86 46 41 0 2004 2005 2006 2007 YTD Q1 07 YTD Q1 08 Q1 08 vs Q1 07: Lower EPS consequential from lower profit. Shell Refining Company (Federation Of Malaya) Berhad

  21. Slide 21: SRC Dividends Per Share

    SRC Dividends Per Share Note: 2005: 3 special interim dividends totalling 50 sen 100 per share. 80 2006: 2 special interim 50 Sen per share 40 dividends totalling 40 sen 60 20 per share paid. 20 40 2007: 1 special interim 38 38 30 35 dividend of 20 sen per 20 share, 1 interim dividend 20 10 12 12 of

  22. Slide 22: SRC Dividend Strategy

    SRC Dividend Strategy “Your Board maintains its firm intention to sustain an annual dividend level of at least 50 sen per share (interim plus final) for the foreseeable future, excluding special interim dividends subject to financial performance and cash availability.” extract from our Chairman’s St

  23. Slide 23: SRC Financial Summary

    SRC Financial Summary YTD Q1 YTD Q1 Year to Date Unit 2004 2005 2006 2007 2007 2008* Revenue RM mil 7,511 9,695 10,887 11,415 2,191 3,427 EBITDA RM mil 869 819 459 923 216 202 Net Income After Tax RM mil 670 522 258 593 137 123 Earning per share Sen 223 174 86 198 46 41 Dividends per share Sen 65 10

  24. Slide 24: SRC Return on Average Capital Employed

    SRC Return on Average Capital Employed Note: 40% 2004: Highest ROACE to date, resulting from record Profit after 30% Taxation in 04. 2006: Lower ROACE in 20% 36% 2006 compared to 05 28% 26% due to lower refining 23% margins esp.in Q4 06. 10% 19% 15% 2007: Doubled ROACE 0% in 2007 compared to 2004 20

  25. Slide 25: SRC Capital Expenditure

    SRC Capital Expenditure Higher CAPEX in 2005 120 due to statutory shutdown. CAPEX in 2006 due to 100 one-off capitalisation of an upgraded ERP system. 80 RM (millions) Higher CAPEX in Q1 08 vs 60 110 Q1 07 due to preparation for statutory shutdown in 40 mid 08. 20 43 27 28 18 9 - 2004 2005 2006 2007

  26. Slide 26: SRC Share Price Performance

    SRC SRCShare SharePrice PricePerformance Performance SRC Share Price vs Bursa Malaysia Composite Index (normalised) Composite Index SRC Share Price Full Year 2006 Results Interim Dividend – 13 August 2007 & Final Dividend Full Year 2007 Results 150 – 28 February 2007 Quarter 3 2007 & Final Dividend

  27. Slide 27: SRC Effective Tax Rate

    SRC Effective Tax Rate Note: 30% 2004: Low ETR due to utilization of Reinvestment 25% Allowance. 2005: Utilization of 20% Reinvestment Allowance 27% 28% RM130 Million. 15% 24% 25% 21% 2006: Low ETR due to deferred 10% tax credit of RM 40 Million. 10% 2007: ETR in line with corp. 5% tax rate of 27%.

  28. Slide 28: Q&A Contact details

    Q&A Contact details: En. Udumansa Kathar Communications Advisor Tel: +606-6404162 Fax: +606-6479658 Email: udumansa.kathar@shell.com Shell Refining Company (Federation Of Malaya) Berhad

  29. Slide 29: Back-Up Slides

    Back-Up Slides Shell Refining Shell RefiningCompany Company (Federation (Federation of Malaya) Of Malaya) BhdBerhad

  30. Slide 30: SRC's Vision

    SRC’s Vision To Be The Top Performing and Most Admired Refinery in Asia Shell Refining Company (Federation Of Malaya) Berhad

  31. Slide 31: Striving towards continuous improvement!

    2007 ACCA MESRA Award (for 2006) Striving towards continuous 2007 MSOSH Grand Award (for 2006) improvement ! 2007 Prime Minister’s Hibiscus Award Notable Achievement (for 2006/7) 2006 ACCA Environmental Award 2007 Prime Minister’s Hibiscus Award 2006 MSOSH Gold Award (for 2005) Negeri Sembilan State

  32. Slide 32: SRC Product flow to customers

    SRC Product flow to customers Propylene LPG REFORMER Gasoline DISTILLATION CRUDE Kerosine OIL TREATERS Diesel LONG RESIDUE CATALYTIC CRACKER Fuel Oil ELECTRICITY Component Shell Refining Company (Federation Of Malaya) Berhad

  33. Slide 33: SRC - Crude Type

    SRC – Crude Type Malaysian Far East Mid East Miri Light Bach Ho Oman Labuan Rang Dong Murban Kidurong Enfield Kekwa XiJiang Su Tu Den Shell Refining Company (Federation Of Malaya) Berhad

Shell Refining Company (Federation of Malaya) Berhad — Q1 2008 Earnings Presentation on 6ix