Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q3 2015 Earnings Presentation
19 slides from Shell's earnings presentation, Oct 29, 2015
Slide 1: Third Quarter 2015 Results
THIRD QUARTER 2015 RESULTS ROYAL DUTCH SHELL PLC 29 OCTOBER 2015 Copyright of Royal Dutch Shell plc 29 October, 2015 1
Slide 2: Ben van Beurden, Chief Executive Officer
BEN VAN BEURDEN CHIEF EXECUTIVE OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 29 October, 2015 2
Slide 3: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISIDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. The information set out in this presentation is not intended to form
Slide 4: Summary
SUMMARY Q3 2015 results underpinned by Downstream Underlying CCS earnings $1.8 billion; CFFO $11.2 billion; Q315 dividend $0.47 per share $7.9 billion charges in the quarter Review of long-term options Reduced oil-price outlook Recommended combination with BG on-track for early ‘16 compl
Slide 5: Alaska Update
ALASKA UPDATE 2015 2015 Burger J well completed Main objective: water-bearing Demobilizing from Alaska US Government decision not to grant lease suspension means: Chukchi leases expire in 2020 Beaufort Sea leases expire in 2017-19 Exploration halted Copyright of Royal Dutch Shell plc 2
Slide 6: Shell + BG: 'Grow to Simplify'
SHELL + BG: ‘GROW TO SIMPLIFY’ REVIEWING LONGER-TERM OPTIONS Actions taken Heavy oil: Carmon Creek in-situ halted Shales: International: portfolio restructuring complete Refocusing Shell: Americas: retained growth options ‘engines’, deep water + LNG Charges taken with Q3 2015 results A
Slide 7: Simon Henry, Chief Financial Officer
SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 29 October, 2015 7
Slide 8: Prices & Margins
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 Gas - Americas (RHS) Rotterdam complex NE/SE Asia naphtha Gas - rest of world (RHS) Si
Slide 9: Q3 2015 Financial Highlights
Q3 2015 FINANCIAL HIGHLIGHTS Earnings Q3 2014 to Q3 2015 $ billion Q3 Q3 2014 2015 $ billion UPSTREAM 4.3 (0.4) DOWNSTREAM 1.8 2.6 CORPORATE & MINORITIES (0.3) (0.4) CCS NET EARNINGS 5.8 1.8 CCS EARNINGS, $ PER SHARE 0.92 0.28 CASH FROM OPERATIONS 12.8 11.2 ROACE (%) 10.1 5.5 SHARE BUYBACKS 0.8 - DI
Slide 10: Upstream Results Q3 2015
UPSTREAM RESULTS Q3 2015 Earnings Q3 2014 to Q3 2015 $ billion Significant decline in prices Environment Choice Increase well write-offs and taxes Lower costs + improved volumes Earnings on CCS basis, excluding identified items Copyright of Royal Dutch Shell plc 29 October, 2015 10
Slide 11: Upstream Production Performance Q3 2015
UPSTREAM PRODUCTION PERFORMANCE Q3 2015 Production million boe per day Strong operating performance Underlying + 9% Growth > decline 3.0 2.75 2.79 2.5 Copyright of Royal Dutch Shell plc 29 October, 2015 11
Slide 12: Downstream Results Q3 2015
DOWNSTREAM RESULTS Q3 2015 Earnings Q3 2014 to Q3 2015 $ billion Higher realised refining margins Self-help programmes Lower tax + favorable FX Earnings on CCS basis, excluding identified items Copyright of Royal Dutch Shell plc 29 October, 2015 12
Slide 13: Cash Performance + Payout
CASH PERFORMANCE + PAYOUT Cash flow Cash generation – Q315 4Q rolling $ billion $ billion $ billion DOWN- STREAM UP- STREAM CFFO CFFI CFFO CFFI Free cash flow (RHS) Dividend and buyback Dividend + buyback $ billion % Financial priorities: 1) Debt reduction 2) Dividends 3) Buybacks + capital invest
Slide 14: Cash Flow Management + Track Record
CASH FLOW MANAGEMENT + TRACK RECORD $ billion $102 $106 $60 BG enhances Shell free cash flow per share Improved dividend capacity + buy back potential 5-year average 3-year average 12-month average 2010-2014 2012-2014 15Q3 4Q rolling Cash flow from operations Cash used in investing activities Av
Slide 15: Summary
SUMMARY Q3 2015 results underpinned by Downstream Underlying CCS earnings $1.8 billion; CFFO $11.2 billion; Q315 dividend $0.47 per share $7.9 billion charges in the quarter Review of long-term options Reduced oil-price outlook Recommended combination with BG on-track for early ‘16 compl
Slide 16: Questions & Answers
QUESTIONS & ANSWERS THIRD QUARTER 2015 RESULTS ROYAL DUTCH SHELL 29 OCTOBER 2015 Copyright of Royal Dutch Shell plc 29 October, 2015 16
Slide 17: Third Quarter 2015 Results
THIRD QUARTER 2015 RESULTS ROYAL DUTCH SHELL 29 OCTOBER 2015 Copyright of Royal Dutch Shell plc 29 October, 2015 17
Slide 18: Q4 2015 Outlook
Q4 2015 OUTLOOK Q4 – Q4 OUTLOOK: Upstream Divestment impact: ~-50 kboe/d Netherlands gas (NAM) curtailment & underground storage: ~-40 kboe/d PSC expiry: ~-30 kboe/d Planned maintenance: ~+25 kboe/d Downstream Refinery availability lower due to higher turnaround activities Chemicals av
Slide 19: Sensitivities
SENSITIVITIES 2015 Outlook Brent: $10/bbl Brent +/- ~$3.3 billion earnings per annum Henry Hub: $1/mmbtu +/- $300 million earnings per annum Tax liability foreign exchange impact to earnings (non-cash; after tax): Australian dollar: 0.01ct change AUD/USD: ~$60 million earnings impact Brazi