Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Q2 2012 Earnings Presentation
23 slides from Shell's earnings presentation, Jul 26, 2012
Slide 1: Royal Dutch Shell plc Second Quarter 2012 Results
ROYAL DUTCH SHELL PLC SECOND QUARTER 2012 RESULTS LONDON JULY 26 2012 Copyright of Royal Dutch Shell plc 26 July 2012 1
Slide 2: Peter Voser, Chief Executive Officer
ROYAL DUTCH SHELL PLC SECOND QUARTER 2012 RESULTS PETER VOSER CHIEF EXECUTIVE OFFICER Copyright of Royal Dutch Shell plc 26 July 2012 2
Slide 3: Definitions and Cautionary Note
DEFINITIONS AND CAUTIONARY NOTE Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves or SEC proven mining reserves. Resources are consistent with the Society of Petroleum engineers 2P and 2C definitio
Slide 4: Overview
OVERVIEW Performance focus Q2 „12 earnings $5.7 bln; EPS -13% H1 „12 earnings $13 bln; EPS unchanged H1 ‟12 asset sales $4 bln CONTINUOUS IMPROVEMENT GROWTH DELIVERY Growth delivery Underlying production growth 4% MATURE NEW OPTIONS >20 projects under construction PERFORMANCE FOCUS New gro
Slide 5: Continuous Improvement: Downstream
CONTINUOUS IMPROVEMENT DOWNSTREAM MINIMIZING UNPLANNED DOWNTIME % $ per barrel $ per tonne 10 8 800 5 6 600 0 4 400 2006 2007 2008 2009 2010 2011 1H2012 Oil Products Chemicals 2 200 CHALLENGING INDUSTRY CONDITIONS 0 0 2008 2009 2010 2011 2012 FOCUS ON IMPROVING UPTIME + RETURNS Weighted average refi
Slide 6: Growth Delivery: Ramping Up New Projects
GROWTH DELIVERY RAMPING UP NEW PROJECTS ATHABASCA OIL SANDS, QATARGAS 4, PEARL GTL PEARL GTL PRODUCT SLATE BUILD-UP $ billion per quarter thousand boe/day 400 100% LPG NAPHTHA NAPHTHA NAPHTHA NAPHTHA GASOLINE GAS OIL NAPHTHA 200 GAS OIL 50% GAS OIL GAS OIL KEROSENE GAS OIL 0.0 0 BASE OIL BASE OIL BA
Slide 7: Maintaining Growth Momentum
MAINTAINING GROWTH MOMENTUM UPSTREAM KEY PROJECTS UNDER CONSTRUCTION UPSTREAM INVESTMENT 2012 % Schiehallion AOSP Debottlenecking Redevelopment Clair Ph2 Corrib Kashagan Ph1 North America tight gas Eagle Ford Majnoon FCP UAE Caesar Tonga Mars B Cardamom Forcados Yokri Southern Swamp Harweel Amal
Slide 8: New Projects Under Construction
NEW PROJECTS UNDER CONSTRUCTION Mars-B Construction, South Korea Harweel, Oman Gumusut Kakap, Malaysia Prelude FLNG, Australia Copyright of Royal Dutch Shell plc 26 July 2012 8
Slide 9: Recycling Capital into New Growth
RECYCLING CAPITAL INTO NEW GROWTH DIVESTMENTS 2011-2012 YTD H1 2012 DELIVERY Portfolio rationalisation: $4 billion disposals 1H „12 Exit non-core positions ~$12 billion Strategic partnering; Prelude, Groundbirch Refinery-to-terminal conversions Continued portfolio build Liquids-rich sh
Slide 10: Maturing New Options: Exploration & Business Development
MATURING NEW OPTIONS: EXPLORATION & BUSINESS DEVELOPMENT Miss. Lime BUILDING NEW ACREAGE Bakken Eagle Ford Wolfcamp Fox Creek „000 km2 cumulative gross acreage cumulative spend $ billion LRS Neuquen Exshaw 400 15 Niobrara Colombia Tight / Shale Canol Utica Turkey Montney/Gundy Entry cost Jin Qiu 10
Slide 11: Alaska Exploration 2012 Programme
ALASKA EXPLORATION 2012 PROGRAMME Large prospects in Chukchi and Beaufort Seas Drilling plans 2012 2 exploration wells <50 meters water depths 2 rigs + 19 support vessels mobilized HSE priority Additional shear ram to blowout preventers Subsea capping capability Arctic containment
Slide 12: Maturing New Options: North America Integrated Gas Potential
MATURING NEW OPTIONS NEW NORTH AMERICA INTEGRATED GAS POTENTIAL LNG Canada Green corridor gas-to-transport Studying 12 mtpa at Kitimat 0.3 mtpa at Jumping Pound Shell‟s integrated gas capabilities Shell 40% + strategic partners Equity + industry resources base Natural hedge; oil/gas diff
Slide 13: Simon Henry, Chief Financial Officer
ROYAL DUTCH SHELL PLC SECOND QUARTER 2012 RESULTS SIMON HENRY CHIEF FINANCIAL OFFICER Copyright of Royal Dutch Shell plc 26 July 2012 13
Slide 14: Prices & Margins
PRICES & MARGINS SHELL OIL & GAS REALISATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS $/barrel $/mscf $/barrel $/tonne 8 1000 10 110 800 8 7 600 6 100 400 4 6 200 2 90 0 0 80 5 -2 -200 Q211 Q311 Q411 Q112 Q212 Q211 Q311 Q411 Q112 Q212 Q211 Q311 Q411 Q112 Q212 Oil US West Coast US ethane
Slide 15: Q2 2012 Financial Highlights
Q2 2012 FINANCIAL HIGHLIGHTS Q2 2011 TO Q2 2012 $ billion Q2 2011 Q2 2012 UPSTREAM 5.4 4.5 8 DOWNSTREAM (CCS) 1.1 1.3 BUSINESS SEGMENTS TOTAL 6.5 5.8 EPS Q2-Q2 CORPORATE & MINORITIES 0.1 -0.1 6 -13% CCS NET EARNINGS 6.6 5.7 CCS EARNINGS, $ PER SHARE 1.05 0.91 4 CASH FROM OPERATIONS 10.0 13.3 2 SHARE
Slide 16: Upstream Performance
UPSTREAM PERFORMANCE EARNINGS OIL & GAS PRODUCTION $ billion million boe/day 3.6 6 +4% 3.4 +2% Q2-Q2 3.2 CONTROLLABLE -17% 3.0 4 VOLUMES production in million boe/day million tonnes 2 4 6 4 2 2 0 0 0 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Other Upstream Oil L
Slide 17: Downstream Performance
DOWNSTREAM PERFORMANCE EARNINGS VOLUMES & AVAILABILITY $ billion % availability volume 2 100 7 Q2-Q2 +20% 95 1 90 5 85 0 80 -1 75 3 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Oil Products Refinery availability Chemicals Chemicals availability Oil Product sales (m
Slide 18: Cash Performance 12 Months
CASH PERFORMANCE 12 MONTHS BUSINESSES GROUP $ billion $ billion 50 50 Sources Uses Sources 40 40 30 30 Uses 20 20 10 10 Sources Uses 0 - Upstream Downstream Cash flow from Operations excl. net movements in working capital Capex (excl. acquisitions) + Equity Acc. Investments Asset sales Dividend Acqu
Slide 19: Financial Framework
FINANCIAL FRAMEWORK NET DEBT AND GEARING CAPITAL INVESTMENT $ billion $ billion 30% 30 20% 2010 2011 H1 2012 20 Organic Investment 24 26 14 10% 10 Acquisitions 7 5 1 0% 0 Disposals (7) (7) (4) 2005 2006 2007 2008 2009 2010 2011 2012 Gearing (LHS) YTD Net Capital Investment 24 24 11 Net Debt (RHS) RD
Slide 20: Peter Voser, Chief Executive Officer
ROYAL DUTCH SHELL PLC SECOND QUARTER 2012 RESULTS PETER VOSER CHIEF EXECUTIVE OFFICER Copyright of Royal Dutch Shell plc 26 July 2012 20
Slide 21: Summary
SUMMARY Performance focus Q2 „12 earnings $5.7 bln; EPS -13% H1 „12 earnings $13 bln; EPS unchanged H1 ‟12 asset sales $4 bln CONTINUOUS IMPROVEMENT GROWTH DELIVERY Growth delivery Underlying production growth 4% MATURE NEW OPTIONS >20 projects under construction PERFORMANCE FOCUS New grow
Slide 22: Questions & Answers
ROYAL DUTCH SHELL PLC SECOND QUARTER 2012 RESULTS QUESTIONS & ANSWERS Copyright of Royal Dutch Shell plc 26 July 2012 22
Slide 23: Royal Dutch Shell plc Second Quarter 2012 Results
ROYAL DUTCH SHELL PLC SECOND QUARTER 2012 RESULTS LONDON JULY 26 2012 Copyright of Royal Dutch Shell plc 26 July 2012 23