Slide 1: Company Update First Quarter 2016 Results
COMPANY UPDATE FIRST QUARTER 2016 RESULTS ROYAL DUTCH SHELL 4 MAY 2016 Copyright of Royal Dutch Shell plc May 4, 2016 1
Slide 2: Simon Henry, Chief Financial Officer
SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc May 4, 2016 2
Slide 3: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. 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. Resources are c
Slide 4: Summary
SUMMARY Business mix underpins results Downstream + Integrated Gas offsetting Upstream Underlying CCS earnings $1.6 billion; CFFO $0.7 billion; Q116 dividend $0.47 per share BG delivering at bottom line Volume increase + positive earnings impact Q116 Continued drive to re-shape Shell Reducing costs
Slide 5: Prices & Margins
Q1 2016 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 Rotterdam complex NE/SE Asia naphtha Singapore Copyright of Royal Dutch Shell
Slide 6: Financial Highlights
Q1 2016 FINANCIAL HIGHLIGHTS $ billion Q1 2015 Q1 2016 Earnings Q1 2015 to Q1 2016 $ billion Upstream (0.2) (1.4) Integrated Gas 1.5 1.0 Downstream (CCS) 2.6 2.0 Corporate & minorities (0.2) (0.0) CCS net earnings 3.7 1.6 CCS earnings, $ per share 0.59 0.22 Cash flow from operations 7.1 0.7 ROACE (%
Slide 7: Upstream Results
Q1 2016 UPSTREAM RESULTS Earnings Q1 2015 to Q1 2016 $ billion Significant decline in prices Environment Choice Lower costs + higher volumes Earnings on CCS basis, excluding identified items Copyright of Royal Dutch Shell plc May 4, 2016 7
Slide 8: Integrated Gas Results
Q1 2016 INTEGRATED GAS RESULTS Earnings Q1 2015 to Q1 2016 $ billion Lower oil + gas prices Environment Choice MLNG Dua expiry Earnings on CCS basis, excluding identified items Copyright of Royal Dutch Shell plc May 4, 2016 8
Slide 9: Oil and Gas Production
Q1 2016 OIL AND GAS PRODUCTION Upstream + Integrated Gas – oil & gas LNG liquefaction volumes million boe per day Choice: +19% million tonnes 3.75 3.50 3.25 3.00 Copyright of Royal Dutch Shell plc May 4, 2016 9
Slide 10: Downstream Results
Q1 2016 DOWNSTREAM RESULTS Earnings Q1 2015 to Q1 2016 Earnings mix $ billion $ billion Marketing Chemicals Refining & Trading Lower industry refining margins Uplift from lower costs Earnings on CCS basis, excluding identified items Copyright of Royal Dutch Shell plc May 4, 2016 10
Slide 11: Cash Performance + Payout
CASH PERFORMANCE + PAYOUT Cash flow Cash generation – 16Q1 4Q rolling $ billion $ billion $ billion DOWNSTREAM /CORPORATE IG UPSTREAM CFFO BG – cash element CFFO Dividend and buyback Cash investment Free cash flow (RHS) Cash investment Dividend + buyback $ billion % Priorities for cash: Debt reducti
Slide 12: BG Consolidation
Q1 2016 BG CONSOLIDATION BG Final transaction price: $54 billion $ billion Q4 2015 Q1 2016 fair value Cash: $19 billion Assets 340.2 85.4 416.3 Equity: $34 billion Liabilities 176.0 40.3 218.3 Equity 164.2 45.0 198.0 Goodwill: $9 billion Debt (long + 58.4 20.3 80.9 Difference between purchase consid
Slide 13: Combination with BG
COMBINATION WITH BG BG Production Thousand boe per day Positive earnings impact Q1 2016 +25% Production growth 25%: Brazil + Australia Integration of Shell + BG underway Others Australia Brazil Australia - QCLNG Brazil - FPSO *Shell entitlement Q116 522 kboed following 15th of February 2016 close of
Slide 14: Spending Update
SPENDING UPDATE Operating costs Capital investment Shell BG $ billion $ billion -24% -35% underlying Headcount reduction Project re-phasing / deferral Supply chain + contractor actions Supply chain savings Divestments Dilutions + exits 2015 BG costs are provisional, subject to conclusion of 2015 ann
Slide 15: Summary
SUMMARY Business mix underpins results Downstream + Integrated Gas offsetting Upstream Underlying CCS earnings $1.6 billion; CFFO $0.7 billion; Q116 dividend $0.47 per share BG delivering at bottom line Volume increase + positive earnings impact Q116 Continued drive to re-shape Shell Reducing costs
Slide 16: Questions & Answers First Quarter 2016 Results
QUESTIONS & ANSWERS FIRST QUARTER 2016 RESULTS ROYAL DUTCH SHELL PLC 4 MAY 2016 Copyright of Royal Dutch Shell plc May 4, 2016 16
Slide 17: Q2 2016 Outlook
Q2 2016 OUTLOOK Q2 – Q2 OUTLOOK Upstream Divestment impact: ~-10 kboe/d PSC expiry: ~-25 kboe/d Netherlands gas (NAM) curtailment & underground storage and Maintenance: ~+60 kboe/d Integrated gas Maintenance: ~-30 kboe/d Downstream Refinery availability lower Chemicals availability similar PPA - aft
Slide 18: Company Update First Quarter 2016 Results
COMPANY UPDATE FIRST QUARTER 2016 RESULTS ROYAL DUTCH SHELL 4 MAY 2016 Copyright of Royal Dutch Shell plc May 4, 2016 18