Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q1 2020 Earnings Presentation
27 slides from Shell's earnings presentation, Apr 30, 2020
Slide 1: First Quarter 2020 Results
FIRST QUARTER 2020 RESULTS Delivering a world-class investment case Royal Dutch Shell plc April 30, 2020 #MakeTheFuture Royal Dutch Shell | April 30, 2020
Slide 2: Ben van Beurden, Chief Executive Officer
Ben van Beurden Chief Executive Officer Royal Dutch Shell | April 30, 2020
Slide 3: Definitions & cautionary note
Definitions & cautionary note -tax effect of oil- ave sh wise. This measure is defined as the sum of CCS earnings excluding identified items for the current and previous three quarters, adjusted for after-tax interest expense, expressed as a percentage of the average capital employed for the same pe
Slide 4: Key messages
Key messages Thrive in the energy ◼ Thrive in the energy transition transition Net-zero emissions energy business by 2050 or sooner Supported by Net Carbon Footprint ambition for 1.5°C ◼ World-class investment case World-class Resetting the quarterly dividend to $0.16 per share investment case Cash
Slide 5: Uncertainty around macro economic recovery
Oil price Oil demand Uncertainty $/bbl around macro economic recovery Historical Brent price Range Historical demand Range Price outlook (average) Demand outlook (average) LNG demand Refined products demand Million tonnes Historical demand Range Gasoline Diesel Main refined products Demand outlook (
Slide 6: Continuity of business
Care for each other Continuity ofbusiness Continuity of business Cash preservation ◼ Donated IPA in the Netherlands and Canada ◼ Stable and continued operations, focusing on ◼ Cash capital expenditure reduced to $20 ingredient needed for hand sanitiser asset integrity and safety billion or lower in
Slide 7: Protecting value and improving resilience in a challenging macro
Protecting value and improving resilience in a challenging macro ◼ Resetting the quarterly dividend from $0.47 per share to $0.16 per share in order to: ◼ Protect and improve the resilience of the company ◼ Sustain and grow the value of the company ◼ Enable future growth and shareholder distribution
Slide 8: Climate ambition
climate Net-zero Net Carbon ambition emissions Footprint from own ambition 1.5°C operations A net-zero Reduction of the emissions energy Aiming to be net-zero Net Carbon Footprint1 on all the emissions of the energy products business by 2050 from the manufacture we sell by 30% by of all our products
Slide 9: Jessica Uhl, Chief Financial Officer
Jessica Uhl Chief Financial Officer Royal Dutch Shell | April 30, 2020
Slide 10: Financial highlights: summary
Q1 2020 average Brent price: $50/bbl Q1 2020 Downstream margins lower than historical average Financial highlights: summary Cash Cash flow from operations excluding working capital $7.4 billion ◼ Positive working capital movements of $7.5 billion generation Free cash flow ◼ Of which $10.3 billion or
Slide 11: Financial highlights: earnings
Earnings Q1 2019 to Q1 2020 Q1 2019 Q1 2020 Q1 2020 $ billion $ billion Financial Integrated Gas 2.6 2.1 highlights: earnings Upstream 1.6 0.3 Oil Products 1.4 1.4 Chemicals 0.5 0.1 Corporate (0.7) (1.0) Non-controlling interest (0.1) (0.1) Earnings 5.3 2.9 Earnings, $ per share 0.65 0.37 ROACE (%)
Slide 12: Financial highlights: cash flow
CFFO ex. working capital Q1 2019 to Q1 2020 $ billion Q1 2019 Q1 2020 Q1 2020 $ billion Financial Integrated Gas 4.2 4.0 highlights: Upstream 5.3 5.6 cash flow Oil Products (0.6) 4.9 Chemicals (0.0) (0.2) Corporate (0.3) 0.6 Cash flow from operations 8.6 14.9 Cash flow from operations 12.1 7.4 excl.
Slide 13: A resilient framework to be well-positioned for the future
A resilient ◼ Significant uncertainty around commodity prices and margins ◼ Unknown depth and duration of the current downcycle framework to Managing ◼ Downside risk on volumes in Upstream, Integrated Gas and be well- uncertainties and risks Downstream positioned for ◼ Counterparty risks (performanc
Slide 14: Summary
Summary Thrive in the energy ◼ Thrive in the energy transition transition Net-zero emissions energy business by 2050 or sooner Supported by Net Carbon Footprint ambition for 1.5°C ◼ World-class investment case World-class Resetting the quarterly dividend to $0.16 per share investment case Cash prese
Slide 15: Q&A
Q&A Ben van Beurden Jessica Uhl Chief Executive Officer Chief Financial Officer Royal Dutch Shell | April 30, 2020
Slide 16: Slide 16
Slide 17: Portfolio highlights
Project delivery Portfolio delivery Q1 2020 Portfolio 3 0 4 3 highlights FIDs Start-ups Growth Divestments opportunities ◼ Final investment decisions taken: ◼ Growth: ◼ ◼ Signed farm- in agreement for three offshore Australia exploration blocks in Colombia ◼ Colibri project in Trinidad and Tobago ◼
Slide 18: Financial highlights: trend
Q1 2020 (4Q rolling) Q1 2020 average Brent price: $61/bbl Financial highlights: trend Earnings & ROACE Cash flow Gearing $ billion % $ billion $ billion % Upstream Oil Products Corporate + NCI CFFO CFFI FCF Net debt (at period-end) Gearing (RHS) Integrated Gas Chemicals ROACE (RHS) ◼ 4Q rolling earn
Slide 19: Q2 2020 outlook
Outlook Q2 2020 outlook Integrated Gas ◼ As a result of COVID-19, there is significant uncertainty in the expected macroeconomic conditions with an expected negative impact on demand for oil, ◼ Production is expected to be 840 - 890 thousand boe/d gas and related products. Furthermore, recent global
Slide 20: Prices and margins
Q1 2020 Prices and margins Shell oil & gas realisations Industry refining margins Industry chemicals margins $ per barrel $ per mscf $ per barrel $ per tonne Oil US West Coast US ethane Gas (RHS) US Gulf Coast coking Western Europe naphtha Rotterdam complex NE/SE Asia naphtha Singapore Royal Dutch S
Slide 21: Integrated Gas results
Earnings Q1 2019 to Q1 2020 Q1 2020 $ billion Integrated Gas results Royal Royal Dutch Dutch Shell Shell || April April 30, 30, 2020 2020 21
Slide 22: Upstream results
Earnings Q1 2019 to Q1 2020 Q1 2020 $ billion Upstream results Royal Royal Dutch Dutch Shell Shell || April April 30, 30, 2020 2020 SPF stands for special participation fee. 22
Slide 23: Oil Products results
Earnings Q1 2019 to Q1 2020 Q1 2020 $ billion Oil Products results Royal Royal Dutch Dutch Shell Shell || April April 30, 30, 2020 2020 23
Slide 24: Chemicals results
Earnings Q1 2019 to Q1 2020 Q1 2020 $ billion Chemicals results Royal Royal Dutch Dutch Shell Shell || April April 30, 30, 2020 2020 24
Slide 25: Projects under construction
2020-21 Shell share: ~300 kboe/d 1.5 mtpa ethylene Projects under construction 2022+ Shell share: >190 kboe/d, 5.6 mtpa LNG Shell share [A] Peak production LNG capacity Products Power output Shell- Start-up Project Country Theme % 100% kboe/d 100% mtpa 100% capacity 100% MW operated 2020-2021 Arran
Slide 26: Pre-FID options (1)
Shell share potential: >1000 kboe/d ~15 mtpa LNG Pre-FID options (1) ~2 GW Shell share [A] Peak production LNG capacity Products Power output Shell- Phase Project Country Theme % 100% kboe/d 100% mtpa 100% capacity 100% MW operated Define Bonga South West Nigeria 43 150 Deep Water P Bukom Gasoline
Slide 27: Pre-FID options (2)
Shell share potential: >1000 kboe/d ~15 mtpa LNG Pre-FID options (2) ~2 GW Shell share [A] Peak production LNG capacity Products Power output Shell- Phase Project Country Theme % 100% kboe/d 100% mtpa 100% capacity 100% MW operated Assess/Select East Med Egypt 35 115 Integrated Gas (continued) For