Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Q2 2010 Earnings Presentation
20 slides from Shell's earnings presentation, Jul 29, 2010
Slide 1: Royal Dutch Shell plc Second Quarter 2010 Results
ROYAL DUTCH SHELL PLC SECOND QUARTER 2010 RESULTS THE HAGUE JULY 29, 2010 1 Copyright of Royal Dutch Shell plc 29/07/2010
Slide 2: Peter Voser, Chief Executive Officer
ROYAL DUTCH SHELL PLC SECOND QUARTER 2010 RESULTS PETER VOSER CHIEF EXECUTIVE OFFICER 2 Copyright of Royal Dutch Shell plc 29/07/2010
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 for all 2009 data, and includes both SEC proved oil and gas reserves and SEC proven mining reserves for 2007 and 2008 data. Resources: Our use of the term “resources” i
Slide 4: On Track for Growth
ON TRACK FOR GROWTH Q2 2010 RESULTS PERFORMANCE FOCUS GROWTH DELIVERY 4 Copyright of Royal Dutch Shell plc 29/07/2010
Slide 5: Strategy
STRATEGY MATURING NEXT GENERATION OF PROJECT OPTIONS NEW WAVE OF PRODUCTION GROWTH PERFORMANCE FOCUS Competitive performance – Profitable growth – Sharper delivery 5 Copyright of Royal Dutch Shell plc 29/07/2010
Slide 6: Group Restructuring Completed, Delivering and Exceeding Our Targets
MATURING NEXT GENERATION OF PROJECT OPTIONS GROUP RESTRUCTURING COMPLETED NEW WAVE OF PRODUCTION GROWTH DELIVERY & EXCEEDING OUR TARGETS PERFORMANCE FOCUS Previous structure……. ……new top level • Transition 2009 9 structure 1st July 2009 • >$3.5 billion underlying cost savings 9 E&P • 7,000 staff red
Slide 7: Continuous Improvement
MATURING NEXT GENERATION OF PROJECT OPTIONS CONTINUOUS IMPROVEMENT NEW WAVE OF PRODUCTION GROWTH PERFORMANCE FOCUS STANDARDIZATION CAPITAL EFFICIENCY EXAMPLE: OFFSHORING TO LOW COST SHARED SERVICE CENTERS DIVESTMENT PROCEEDS ‘000s STAFF $ BLN $7-8 BILLION 10 40 DIVESTMENTS 2010-11 CORPORATE UPSTREAM
Slide 8: New Wave of Production Growth: 2010 Delivery
MATURING NEXT GENERATION OF PROJECT OPTIONS NEW WAVE OF PRODUCTION GROWTH NEW WAVE OF PRODUCTION GROWTH 2010 DELIVERY PERFORMANCE FOCUS KEY POST-FID PROJECTS GBARAN UBIE ON STREAM 2010 9 Gjoa AOSP-1 Corrib Sakhalin II 9 NA Kashagan Ph 1 9 Port Schoonebeek Tight gas Arthur Iraq SAS Caesar Qatargas 4
Slide 9: Next Generation Project Options: H1 2010 Exploration & Business Development
MATURING NEXT GENERATION OF PROJECT OPTIONS NEXT GENERATION PROJECT OPTIONS NEW WAVE OF PRODUCTION GROWTH H1 2010 EXPLORATION PERFORMANCE FOCUS & BUSINESS DEVELOPMENT CHINA TIGHT GAS • Jinqiu PSC: 4,000 km2 tight gas • Fushun JAA: 4,000 km2 shale gas IRAQ MAJNOON OIL FIELD • DPSC signed • Targeting
Slide 10: Simon Henry, Chief Financial Officer
ROYAL DUTCH SHELL PLC SECOND QUARTER 2010 RESULTS SIMON HENRY CHIEF FINANCIAL OFFICER 10 Copyright of Royal Dutch Shell plc 29/07/2010
Slide 11: Prices and Margins
PRICES AND MARGINS SHELL OIL & GAS REALIZATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS $/BARREL $/MSCF $/BARREL $/TONNE 80 7 12 600 10 500 8 70 6 400 6 300 4 60 5 200 2 0 100 50 4 -2 0 US ETHANE US WEST COAST ROTTERDAM OIL GAS WESTERN EUROPE NAPHTHA (rh scale) US GULF COAST SINGAPORE N
Slide 12: Q2 2010 Financial Highlights
Q2 2010 FINANCIAL HIGHLIGHTS CCS EARNINGS ($ BILLION) Q2 2009 TO Q2 2010 $ BILLION 6 Q2 10 Q2 09 UPSTREAM 3.3 2.2 DOWNSTREAM (CCS) 1.2 0.4 5 BUSINESS SEGMENTS TOTAL 4.4 2.6 CORPORATE & MINORITIES (0.2) 0.5 4 CCS NET EARNINGS 4.2 3.2 CCS EARNINGS PER SHARE* 0.68 0.51 3 CASH FROM OPERATIONS 8.1 0.9 2
Slide 13: Upstream Performance
UPSTREAM PERFORMANCE EARNINGS OIL & GAS PRODUCTION $ BILLION MILLION BOE/D 3.6 5 3.4 4 3 3.2 2 3.0 1 CONTROLLABLE 0 2.8 Q209 Q309 Q409 Q110 Q210 OTHER UPSTREAM INTEGRATED GAS Excluding Identified Items 13 Copyright of Royal Dutch Shell plc 29/07/2010
Slide 14: Downstream Performance
DOWNSTREAM PERFORMANCE CCS EARNINGS AVAILABILITY AND SALES VOLUMES $ BILLION % AVAILABILITY VOLUME 100 7 1.5 1 95 6 0.5 90 5 0 85 4 -0.5 -1 80 3 Q209 Q309 Q409 Q110 Q210 Q209 Q309 Q409 Q110 Q210 OIL PRODUCTS REFINERY AVAILABILITY OIL PRODUCT SALES (MLN BBLS/D) CHEMICALS CHEMICALS AVAILABILITY CHEMIC
Slide 15: Cash Performance
CASH PERFORMANCE 12 MONTHS BUSINESSES GROUP $ BILLION $ BILLION 30 50 UPSTREAM DOWNSTREAM SOURCES USES SOURCES USES 25 40 20 30 15 SOURCES 20 10 USES 10 5 0 0 CASH FLOW FROM OPERATIONS EXCL. NET ACQUISITIONS MOVEMENTS IN WORKING CAPITAL CAPEX (EXCL. ACQUISITIONS) + EQUITY ACC. INVESTMENTS ASSET SALE
Slide 16: Investment and Balance Sheet
INVESTMENT AND BALANCE SHEET BALANCE SHEET CAPITAL INVESTMENT Gearing % 2009 H1 2010E $ Bln 2010 30% Gearing range Organic investment 31 11.7 ~28 20% Acquisitions 1 1.6 ~7 Disposals (3) (1.6) >2 10% 0% Net Capital Investment 28 11.8 ~33 Q205 Q206 Q207 Q208 Q209 Q210 ACQUISITIONS & DIVESTMENTS H1 201
Slide 17: Peter Voser, Chief Executive Officer
ROYAL DUTCH SHELL PLC SECOND QUARTER 2010 RESULTS PETER VOSER CHIEF EXECUTIVE OFFICER 17 Copyright of Royal Dutch Shell plc 29/07/2010
Slide 18: On Track for Growth
ON TRACK FOR GROWTH Q2 2010 RESULTS • Q2 2010 earnings $4.2 bn. Q2-Q2 earnings per share growth 33% • Lower costs + growth: oil & gas production +5% (3.1mboe/d ), LNG volumes +34% PERFORMANCE FOCUS • Corporate restructuring complete • >$3.5 billion cost savings achieved, 15% ahead of target • ~7,000
Slide 19: Q&A
ROYAL DUTCH SHELL PLC SECOND QUARTER 2010 RESULTS Q&A 19 Copyright of Royal Dutch Shell plc 29/07/2010
Slide 20: Royal Dutch Shell plc Second Quarter 2010 Results
ROYAL DUTCH SHELL PLC SECOND QUARTER 2010 RESULTS THE HAGUE JULY 29, 2010 20 Copyright of Royal Dutch Shell plc 29/07/2010