Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q3 2014 Earnings Presentation
18 slides from Shell's earnings presentation, Oct 30, 2014
Slide 1: Balancing Growth & Returns: Third Quarter 2014 Results
BALANCING GROWTH & RETURNS THIRD QUARTER 2014 RESULTS 30 OCTOBER 2014 ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 30 October, 2014 1
Slide 2: Simon Henry, Chief Financial Officer
SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 30 October, 2014 2
Slide 3: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its
Slide 4: 2014 Priorities
2014 PRIORITIES Q3 2014 DELIVERY CCS earnings $5.8 billion; CFFO $12.8 billion Improve our financial Dividend Q3 2014 $0.47 per share; buybacks $0.8 billion performance Restructuring in Oil Products + North America resources plays $11.6 billion asset sales delivered year to date Enhance our
Slide 5: Prices & Margins
PRICES & MARGINS Shell oil & gas realisations Industry refining margins Industry chemicals margins $/barrel $/mscf $/barrel $/tonne Oil US West Coast US ethane Gas (RHS) US Gulf Coast coking Western Europe naphtha Gas - rest of world (RHS) Rotterdam complex NE/SE Asia naphtha Gas - Americas (RHS) Si
Slide 6: Q3 2014 Financial Highlights
Q3 2014 FINANCIAL HIGHLIGHTS Earnings Q3 2013 to Q3 2014 $ billion Q3 Q3 Environment Choice 2013 2014 $ billion UPSTREAM 3.5 4.3 DOWNSTREAM (CCS) 0.9 1.8 CORPORATE & MINORITIES 0.1 (0.3) CCS NET EARNINGS 4.5 5.8 CCS EARNINGS, $ PER SHARE 0.71 0.92 CASH FROM OPERATIONS 10.4 12.8 ROACE (%) 10.4 10.1 S
Slide 7: Upstream Performance Q3 2014
UPSTREAM PERFORMANCE Q3 2014 Earnings + cash flow Exploration expense $ billion $ billion $ billion Upstream International Upstream Americas Upstream International Upstream Americas Cash flow from operations (RHS) Oil and gas production Million boe/day Million tonnes Q4 – Q4 OUTLOOK: License expir
Slide 8: Downstream Performance Q3 2014
DOWNSTREAM PERFORMANCE Q3 2014 Earnings Cash flow $ billion $ billion Oil Products Chemicals CFFO excl. w/c movements CFFO Working capital movements Availability and sales volumes % Sales volume Q4 – Q4 OUTLOOK: Refinery availability ~90% Chemicals availability ~60% Moerdijk chemicals outage
Slide 9: Cash Performance + Payout
CASH PERFORMANCE + PAYOUT Cash flow Cash generation – Q314 4Q rolling $ billion $ billion $ billion DOWN- STREAM UP- STREAM Cash flow from operations Cash flow from investments CFFO CFFI Free cash flow (RHS) Dividend and buyback Dividend + buyback $ billion % Improving free cash flow >$30 billio
Slide 10: Enhance Capital Efficiency: Portfolio Choices + Asset Sales
ENHANCE CAPITAL EFFICIENCY PORTFOLIO CHOICES + ASSET SALES Example: North America resources plays Maintain/Grow: North America resources plays portfolio Western Canada gas reduction complete + integration plays Appalachia Oil Products restructuring continuing Western Canada LRS Permian L
Slide 11: MLP Launched in USA
MLP LAUNCHED IN USA SHELL MIDSTREAM PARTNERS L.P. Colonial system IPO launched 20 October “SHLX” trading began on 29 October IPO closes 3 November Initial Assets %: Zydeco (Ho-Ho) 43% Mars 28.6% Bengal 49% Colonial 1.612% Copyright of Royal Dutch Shell plc 30 October, 2014 11
Slide 12: Deliver New Projects: Start-ups + New Options
DELIVER NEW PROJECTS START-UPS + NEW OPTIONS Delivering new projects… …maturing substantial new options Appomattox development concept Gumusut-Kakap 2014 Shell-operated start-ups: FIDs in 2014: Mars B ML South, Bonga Main phase 3 Bonga North West ~75,000 boe/d peak production Carda
Slide 13: Conventional Exploration Delivery
CONVENTIONAL EXPLORATION DELIVERY Q3 2014: EXAMPLES Malaysia, Block SK318 Gabon, Block BCD10 Gulf of Mexico Appomattox Kaikias Ram Powell Mars Mars-B Rydberg Nakika Brutus Ursa Vito On stream FEED Doo Sung rig Majoram -1 3D 2014 exploration success 100 km Marjoram gas discovery Frontier Leopard-
Slide 14: Competitive Performance: Balancing Growth and Returns
COMPETITIVE PERFORMANCE: BALANCING GROWTH AND RETURNS 4Q ROLLING Cash flow from operations Free cash flow $ billion $ billion Shell Peer group ROACE – underlying % Driving competitive performance Free cash flow: cash flow from operations less cash used in investing activities ROACE underlying: Eur
Slide 15: 2014 Priorities
2014 PRIORITIES Q3 2014 DELIVERY CCS earnings $5.8 billion; CFFO $12.8 billion Improve our financial Dividend Q3 2014 $0.47 per share; buybacks $0.8 billion performance Restructuring in Oil Products + North America resources plays $11.6 billion asset sales delivered year to date Enhance our
Slide 16: Questions & Answers
QUESTIONS & ANSWERS THIRD QUARTER 2014 RESULTS Copyright of Royal Dutch Shell plc 30 October, 2014 16
Slide 17: Balancing Growth & Returns: Third Quarter 2014 Results
BALANCING GROWTH & RETURNS THIRD QUARTER 2014 RESULTS 30 OCTOBER 2014 ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 30 October, 2014 17
Slide 18: Growth Priorities: Portfolio Development 2014
PORTFOLIO DEVELOPMENT 2014 Q3 2014 YEAR TO DATE DIVESTMENT / EXPLORATION PROGRESS FEED FID START-UPS (PROJECT RE-FRAMING) South Korea Base Oil Italy Manufacturing Plant Australia Denmark DOWNSTREAM Norway ENGINES ENGINE MLP IPO Malaysia NFE success UK Peterhead CCS ML South W