Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q3 2013 Earnings Presentation
14 slides from Shell's earnings presentation, Oct 31, 2013
Slide 1: Delivering Innovative & Competitive Performance - Third Quarter 2013 Results
DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE THIRD QUARTER 2013 RESULTS ROYAL DUTCH SHELL PLC 31 OCTOBER 2013 Copyright of Royal Dutch Shell plc 31 October, 2013 1 Lubricants Zhuhai blending and filling plant, China, 2009
Slide 2: Delivering Innovative & Competitive Performance - Simon Henry, CFO
DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 31 October, 2013 2 FLNG Prelude Keel laying, S Korea, 2013
Slide 3: Definitions and Cautionary Note
DEFINITIONS AND 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 i
Slide 4: Q3 2013 Overview
Q3 2013 OVERVIEW Q3 Q3 Q3 2013 results 2012 2013 Industry refining headwinds $ billion UPSTREAM 4.9 3.5 Higher exploration charges + maintenance DOWNSTREAM (CCS) 1.7 0.9 Nigeria security issues CORPORATE & MINORITIES 0.0 0.1 Integrated Gas + Chemicals growth CCS NET EARNINGS 6.6 4.5 Growth delivery
Slide 5: Prices & Margins
PRICES & MARGINS SHELL OIL & GAS REALISATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS $/barrel $/mscf $/barrel $/tonne 12 1000 8 10 110 800 8 7 600 100 6 4 400 6 90 2 200 0 80 5 -2 0 Q312 Q412 Q113 Q213 Q313 Q312 Q412 Q113 Q213 Q313 Q312 Q412 Q113 Q213 Q313 Oil US West Coast US ethane G
Slide 6: Q3 2013 Financial Highlights
Q3 2013 FINANCIAL HIGHLIGHTS EARNINGS Q3 2012 TO Q3 2013 EARNINGS Q3 2012 TO Q3 2013 $ billion $ billion Environment Choice 8 8 (1.4) (0.3) (0.5) 0.5 0.1 (0.3) (0.8) 6 6 (~0.9) (0.8) 0.2 4 4 6.6 6.6 4.5 2 4.5 2 0 0 Earnings CCS basis, Earnings excluding identified items Copyright of Royal Dutch Shel
Slide 7: Q3 2013 Operational Performance + Outlook
Q3 2013 OPERATIONAL PERFORMANCE + OUTLOOK UPSTREAM UPSTREAM million boe/day million tonnes Growth from Pearl GTL, Malaysia, US LRS 4 6 65 kboe/d Nigeria sabotage Q3-Q3 Q3-Q3 underlying growth 4 2 1% oil & gas; 4% LNG 2 0 0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 DOWNSTREAM Oil LNG Sales (RHS) Improv
Slide 8: Portfolio Development Q3 2013
PORTFOLIO DEVELOPMENT Q3 2013 Notable Divestment / Acquisition / entry discovery / FID Start-ups (Project re- option progress framing) Majnoon Carmon Creek (175 kboe/d) Nigeria asset FID FUTURE Kashagan sales underway OPPORTUNITIES (80 kboe/d) (300 kboe/d) Eagle Ford, Niobrara , RESOURCES Mississipp
Slide 9: Top Project Start-ups '13-'14
TOP 5 PROJECT START-UPS ‘13-’14 Kashagan phase 1 Ramp-up challenges Commissioning is Gumusut-Kakap progressing Commissioning is Mars-B progressing Auger top-side work for Cardamom Cardamom completed Repsol LNG Progressing to completion Mars-B – Oct 2013 Auger platform for Cardamom tie-back Hook-up o
Slide 10: Portfolio Development: Carmon Creek; Libra
PORTFOLIO DEVELOPMENT CARMON CREEK; LIBRA CARMON CREEK FID, CANADA LIBRA ENTRY, DEEP WATER BRASIL Parque das Conchas (BC-10) Bijupirá/Salema LIBRA 80 kboe/day in-situ heavy oil project Shell 20% partner in giant Libra field Bitumen export options to existing refineries Signature bonus $1.4 billion ~
Slide 11: Balancing Long Term Investment + Competitive Payout
BALANCING LONG TERM INVESTMENT + COMPETITIVE PAYOUT GROUP 12 MONTHS CASH PERFORMANCE BUSINESS 12 MONTH CASH PERFORMANCE $ billion $ billion 60 40 Sources Uses Sources Uses 30 40 20 Sources Uses 20 10 0 0 Upstream Downstream CFFO excl. WC movements Asset sales Capex Buy-backs Working capital movement
Slide 12: Summary
SUMMARY Q3 2013 results Industry refining headwinds Higher exploration charges + maintenance Nigeria security issues Integrated Gas + Chemicals growth Growth delivery 4 new production start-ups Carmon Creek final investment decision Winning bid for Libra Capital discipline + long term approach 2013
Slide 13: Questions & Answers
QUESTIONS & ANSWERS THIRD QUARTER 2013 RESULTS Copyright of Royal Dutch Shell plc 31 October, 2013 13 Groundbirch and Gundy, Canada, Upstream Americas, 2013
Slide 14: Delivering Innovative & Competitive Performance - Third Quarter 2013 Results
DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE THIRD QUARTER 2013 RESULTS ROYAL DUTCH SHELL PLC 31 OCTOBER 2013 Copyright of Royal Dutch Shell plc 31 October, 2013 14 Lubricants Zhuhai blending and filling plant, China, 2009