Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — FY2009 Earnings Presentation
19 slides from Shell's earnings presentation, Feb 4, 2010
Slide 1: Royal Dutch Shell plc Fourth Quarter & Full Year 2009 Results
ROYAL DUTCH SHELL PLC FOURTH QUARTER & FULL YEAR 2009 RESULTS FEBRUARY 4th, 2010
Slide 2: Peter Voser, Chief Executive Officer
ROYAL DUTCH SHELL PLC FOURTH QUARTER & FULL YEAR 2009 RESULTS PETER VOSER CHIEF EXECUTIVE OFFICER 2
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: Overview
OVERVIEW • CHALLENGING MARKET CONDITIONS • SHARPENING OUR FOCUS ON DELIVERY & AFFORDABILITY • INVESTMENT PROGRAMME ON TRACK 4
Slide 5: Challenging Market Conditions
CHALLENGING MARKET CONDITIONS KEY INDICATORS $/BBL $/MSCF $/BBL 100 8 • Significant downturn industry margins 2008-09 • Q409 oil price rally; gas + downstream weaker 6 4 • 2010 macro outlook uncertain 60 4 • Shell self-help trends positive 40 2 2 20 0 0 0 OIL PRICE GAS PRICE REFINING MARGIN (Brent)
Slide 6: Successful Implementation of Transition 2009
SUCCESSFUL IMPLEMENTATION OF TRANSITION 2009 TOP DOWN REORGANIZATION NEW PROJECTS + TECHNOLOGY DIVISION Previous structure……. ……new top level structure 1st July 2009 E&P CEO UPSTREAM Contracting INTERNATIONAL & GAS & POWER Procurement UPSTREAM AMERICAS OIL SANDS Technology Innovation Project Solutio
Slide 7: Cost Focus Embedded in Shell Strategy
COST FOCUS EMBEDDED IN SHELL STRATEGY SUPPLY CHAIN + SHELL COSTS 2009 ACHIEVEMENTS • Transition 2009 programme complete • 5,000 staff reduction announced • $2 billion underlying cost savings CONTINUING MOMENTUM IN 2010 • 1,000 staff reduction • $1 billion cost savings potential 2010 Upstream supply
Slide 8: Refocusing Downstream Portfolio
REFOCUSING DOWNSTREAM PORTFOLIO FOCUS ON LARGE & ADVANTAGED SITES 2009 DOWNSTREAM PORTFOLIO ACTIONS Shell refining portfolio value SELECTIVE GROWTH INVESTMENTS Singapore Chemicals Port Arthur UNDER REVIEW Montreal Pearl GTL Stanlow UK refinery Heide Germany conversion Singapore Harburg Germany to te
Slide 9: Progress with New Projects
PROGRESS WITH NEW PROJECTS Caesar Nigeria Pernis Refinery Tonga Associated Low-sulphur Gas / Flaring Fuel Capability Solutions BC-10 Sakhalin II Ursa / Afam Gas & Majnoon + West Qurna 1 Princess Waterflood Power Singapore Chemicals MEG Amal Steam • • Gorgon LNG NWS T5 / Angel Prelude – Floating LNG
Slide 10: 2009 Exploration & Appraisal Success
2009 EXPLORATION & APPRAISAL SUCCESS NORWAY: GRO DISCOVERY LEIV EIRIKSSON RIG NORTH AMERICA TIGHT GAS GULF OF MEXICO OIL & GAS AUSTRALIA GAS USA: CARDAMOM DEEP NEAR FIELD DISCOVERY ACREAGE ACCESS DISCOVERY APPRAISAL SUCCESS 10
Slide 11: Simon Henry, Chief Financial Officer
ROYAL DUTCH SHELL PLC FOURTH QUARTER & FULL YEAR 2009 RESULTS SIMON HENRY CHIEF FINANCIAL OFFICER 11
Slide 12: Prices and Margins
PRICES AND MARGINS SHELL OIL & GAS REALIZATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS $/BBL $/MSCF $/BBL $/T 80 7 12 1400 10 70 6 1100 8 6 800 60 5 4 500 2 50 4 200 0 40 3 -2 -100 Q408 Q109 Q209 Q309 Q409 Q408 Q109 Q209 Q309 Q409 Q408 Q109 Q209 Q309 Q409* OIL GAS US WEST COAST SINGAPO
Slide 13: Q4 2009 Financial Highlights
Q4 2009 FINANCIAL HIGHLIGHTS EARNINGS ($ BLN) Q4 2008 TO Q4 2009 ($ BLN) Q4 09 Q4 08 4 UPSTREAM 2.8 3.3 DOWNSTREAM (0.4) 1.0 BUSINESS SEGMENTS TOTAL 2.3 4.2 3 CORPORATE & MINORITIES 0.4 (0.3) NET EARNINGS 2.8 3.9 EARNINGS PER SHARE 0.45 0.64 2 CASH FROM OPERATIONS 5.7 10.3 DIVIDENDS 2.6 2.4 1 DIVIDE
Slide 14: Upstream Performance
UPSTREAM PERFORMANCE EARNINGS OIL & GAS PRODUCTION $ BLN MILLION BOE/D 3.6 4 3 2 3.2 1 CONTROLLABLE 0 2.8 Q408 Q109 Q209 Q309 Q409 INTEGRATED GAS OTHER UPSTREAM Excluding Identified Items 14
Slide 15: Downstream Performance
DOWNSTREAM PERFORMANCE CCS EARNINGS AVAILABILITY AND SALES VOLUMES $ BILLION % AVAILABILITY VOLUME 100 7 1.5 1 95 6 0.5 90 5 0 85 4 -0.5 -1 80 3 Q408 Q109 Q209 Q309 Q409 Q408 Q109 Q209 Q309 Q409 OIL PRODUCTS REFINERY AVAILABILITY OIL PRODUCT SALES (MLN BBLS/D) CHEMICALS CHEMICALS AVAILABILITY CHEMIC
Slide 16: Peter Voser, Chief Executive Officer
ROYAL DUTCH SHELL PLC FOURTH QUARTER & FULL YEAR 2009 RESULTS PETER VOSER CHIEF EXECUTIVE OFFICER 16
Slide 17: Summary
SUMMARY CHALLENGING MARKET CONDITIONS IN 2009 • 2010 outlook uncertain • Prudent approach to recession SHARPENING OUR FOCUS ON DELIVERY AND AFFORDABILITY • New organization increases accountability + focus; implemented end-2009 • Reducing underlying operating costs $2 billion 2008-09; $1 billion pot
Slide 18: Q&A
ROYAL DUTCH SHELL PLC FOURTH QUARTER & FULL YEAR 2009 RESULTS Q&A
Slide 19: Royal Dutch Shell plc Fourth Quarter & Full Year 2009 Results
ROYAL DUTCH SHELL PLC FOURTH QUARTER & FULL YEAR 2009 RESULTS FEBRUARY 4th, 2010