Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Q2 2008 Earnings Presentation
17 slides from Shell's earnings presentation, Jul 31, 2008
Slide 1: Building New Heartlands: Second Quarter 2008 Results
ROYAL DUTCH SHELL PLC BUILDING NEW HEARTLANDS SECOND QUARTER 2008 RESULTS 31 JULY 2008
Slide 2: Jeroen van der Veer, Chief Executive
ROYAL DUTCH SHELL PLC BUILDING NEW HEARTLANDS JEROEN VAN DER VEER CHIEF EXECUTIVE
Slide 3: Definitions and Cautionary Note
DEFINITIONS AND CAUTIONARY NOTE Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves and SEC proven mining reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil
Slide 4: Q2 2008 Highlights
Q2 2008 HIGHLIGHTS COMPETITIVE RESULTS • CCS earnings $7.9 billion; EPS +15%* • Strong oil & gas prices; weaker downstream environment • Good operating performance INVESTING IN NEW ENERGY SUPPLIES • Building new capacity: 1mboe/d upstream, 0.3mb/d downstream • Increased spending in new growth option
Slide 5: Key Projects Under Construction
KEY PROJECTS UNDER CONSTRUCTION PERDIDO SPAR HULL SAKHALIN II LNG TRAIN 1 GJOA HALFDAN PHASE IV CORRIB KASHAGAN AOSP N AMERICA TIGHT GAS SAKHALIN II PORT ARTHUR PEARL GTL QATARGAS 4 PERDIDO GUMUSUT URSA/PRINCESS OMAN WATERFLOOD NIGERIA SINGAPORE CHEMICALS AFAM NORTH RANKIN B BC-10 PLUTO NWS T5 / ANG
Slide 6: Exploration & Business Development H1 2008 Update
EXPLORATION & BUSINESS DEVELOPMENT H1 2008 UPDATE CCS WEYBURN-MIDALE IOGEN BIOFUELS SWITZERLAND RETAIL CHINA REFINERY & CHUKCHI PETROCHEMICALS LOI VIRENT BIOFUELS TECHNOLOGY DUVERNAY OFFER USA HAYNESVILLE USA HYDROGEN LA STONES BRUNEI GULF OF MEXICO NIGERIA MLJ2-06 DEEPWATER AUSTRALIA COLOMBIA LLANO
Slide 7: Shell & Tight Gas
SHELL & TIGHT GAS PERFORMANCE: PINEDALE OPTIMISED SURFACE FACILITIES KBOE/DAY DAYS 50 60 40 50 SHARED > 4 KM DEPTH PRODUCTION 30 40 FACILITY ON SURFACE PAD: ~1 KM RADIUS 20 30 MULTIPLE WELLS FROM ONE PAD 10 20 SANDSTONE GAS RESERVOIRS 0 10 2002 2003 2004 2005 2006 2007 H1 2008 PRODUCTION PER DAY (KB
Slide 8: Peter Voser, Chief Financial Officer
ROYAL DUTCH SHELL PLC BUILDING NEW HEARTLANDS PETER VOSER CHIEF FINANCIAL OFFICER
Slide 9: Prices and Margins
PRICES AND MARGINS OIL & GAS PRICES REFINING MARGINS CHEMICALS MARGINS* $/BBL $/MMBtu $/BBL $/T 130 12 28 700 120 11 24 600 110 10 20 500 100 9 16 400 90 8 12 300 80 7 8 200 70 6 4 100 60 5 0 0 Q207 Q307 Q407 Q108 Q208 Q207 Q307 Q407 Q108 Q208 Q207 Q307 Q407 Q108 Q208 BRENT JCC* US WEST COAST ROTTER
Slide 10: Q2 2008 Financial Highlights
Q2 2008 FINANCIAL HIGHLIGHTS $ BLN EARNINGS ($ BLN) Q2 08 Q2 07 Q2 2008 VERSUS Q2 2007 ($ BILLION) - EXPL. & PRODUCTION 5.8 2.9 - GAS & POWER 0.6 0.5 10 - OIL SANDS 0.4 0.2 - OIL PRODUCTS 0.9 2.7 9 - CHEMICALS 0.1 0.5 BUSINESS SEGMENTS TOTAL 7.7 6.9 8 NET EARNINGS 7.8 6.9 7 EARNINGS PER SHARE ($) 1.
Slide 11: Upstream Performance
UPSTREAM PERFORMANCE EARNINGS OIL & GAS PRODUCTION $ BILLION MLN BOE/D MLN TONNES 7 4 4 6 3 3 5 4 2 2 3 2 1 1 1 0 0 0 Q207 Q307 Q407 Q108 Q208 Q207 Q307 Q407 Q108 Q208 EXPLORATION & PRODUCTION OIL SANDS OIL EQUITY LNG SALES (MLN TONNES) GAS & POWER GAS 10 Excluding Identified Items
Slide 12: Downstream Performance
DOWNSTREAM PERFORMANCE CCS EARNINGS AVAILABILITY AND SALES VOLUMES $ BILLION % AVAILABILITY VOLUME 4 100 7 3 95 6 2 90 5 1 85 4 0 80 3 Q207 Q307 Q407 Q108 Q208 Q207 Q307 Q407 Q108 Q208 OIL PRODUCTS CHEMICALS REFINERY AVAILABILITY OIL PRODUCT SALES (MLN BBLS/D) CHEMICALS CHEMICALS SALES (MLN TONNES)
Slide 13: Capital Spending Update
CAPITAL SPENDING UPDATE NET CAPITAL SPENDING ($ BLN) DEBT RATIOS (%) 2007 H1 2008 2008E 20% ORGANIC 25.5 13.4 ~30-31 ACQUISITIONS 8.2 2.7 ~10 15% DISPOSALS (9.9) (2.7) ~ (5) NET CAPITAL SPENDING 23.8 13.4 ~35-36 10% •INCREASED A&D 5% •2008 DRILLING OPPORTUNITIES 0% 2005 2006 2007 H108 •INDUSTRY INFL
Slide 14: Q2 2008 Highlights
Q2 2008 HIGHLIGHTS COMPETITIVE RESULTS • CCS earnings $7.9 billion; EPS +15%* • Strong oil & gas prices; weaker downstream environment • Good operating performance INVESTING IN NEW ENERGY SUPPLIES • Building new capacity: 1mboe/d upstream, 0.3mb/d downstream • 2008-09 capacity increase >250kboe/d +
Slide 15: Q&A
ROYAL DUTCH SHELL PLC BUILDING NEW HEARTLANDS Q&A
Slide 16: Building New Heartlands: Second Quarter 2008 Results
ROYAL DUTCH SHELL PLC BUILDING NEW HEARTLANDS SECOND QUARTER 2008 RESULTS 31 JULY 2008
Slide 17: Appendix: Key Projects
APPENDIX: KEY PROJECTS START UP PROJECT COUNTRY SHELL PEAK LNG 100% PRODUCTS CATEGORY SHELL SHARE PRODUCTION CAPACITY OPERATED % kboe/d mtpa 2008- 2009 AFAM GAS SUPPLY NIGERIA 30 46 BC 10 BRAZIL 50 100 NW SHELF LNG T5 /ANGEL AUSTRALIA 22.3 145 4.4 PERDIDO USA 35.4 130 SAKHALIN II /LNG T1-2 RUSSIA 27