Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Q4 2007 Earnings Presentation
15 slides from Shell's earnings presentation, Jan 31, 2008
Slide 1: Leveraging a Strong Portfolio: Fourth Quarter 2007 Results
ROYAL DUTCH SHELL PLC LEVERAGING A STRONG PORTFOLIO FOURTH QUARTER 2007 RESULTS 31ST JANUARY 2008
Slide 2: Jeroen van der Veer, Chief Executive
ROYAL DUTCH SHELL PLC LEVERAGING A STRONG PORTFOLIO JEROEN VAN DER VEER CHIEF EXECUTIVE
Slide 3: Disclaimer Statement
DISCLAIMER STATEMENT This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking s
Slide 4: Leveraging a Strong Portfolio
LEVERAGING A STRONG PORTFOLIO INDUSTRY LANDSCAPE SHELL STRATEGY HIGHER PRICES & COSTS PORTFOLIO SHIFT • NEW LEGACY ASSETS • UPSTREAM + SELECTIVE DOWNSTREAM NEW ENERGY COMPETITORS CHALLENGE TECHNOLOGY • NEW HYDROCARBON RESOURCES • CLEANER FUELS, CO2 SOLUTIONS COMPLEX PROJECTS PORTFOLIO MANAGEMENT SUS
Slide 5: 2007 Highlights
2007 HIGHLIGHTS SATISFACTORY RESULTS • 2007 CCS EARNINGS $ 27.6 BILLION, CCS EPS +11% • GOOD OPERATING PERFORMANCE PORTFOLIO PROGRESS • 11 MATERIAL DISCOVERIES, >6 FIDS IN 2007 • $ 9.9 BLN DISPOSALS, $ 8.2 BLN BUSINESS DEVELOPMENT STRATEGY ON TRACK • COMPETITIVE CASHFLOW: $ 39.5 BLN • CAPITAL DISCIP
Slide 6: New Production & New Projects: 2007 Key Projects
NEW PRODUCTION & NEW PROJECTS 2007 KEY PROJECTS MOUNT STORM STATFJORD 100 MW WIND EXPANSION (50%) 145 KBOE/D (9.4%) CHANGBEI 50 KBOE/D (50%) CHAMPION WEST PH3 B/C 56 KBOE/D (50%) ORMEN LANGE QARN ALAM EOR 44 KBOE/D (34%) 420 KBOE/D (17%) GUMUSUT-KAKAP 150 KBOE/D (33%) PORT ARTHUR 325 KBOE/D REFINERY
Slide 7: Exploration & Business Development
EXPLORATION & BUSINESS DEVELOPMENT 2007 SHELL CANADA SAKHALIN MINORITIES BUYOUT GAZPROM AMI ROSNEFT & TATNEFT STRATEGIC AGREEMENTS CHINA ONYX-SW COALBED METHANE VENTURE & CLEAN COAL LICENCE KHAZAR VICKSBURG RETAIL GROWTH KEBABANGAN CLUSTER WEST TONGA BUDOUR-NE BUBUT AGHATA ADVANCED BIOFUELS NW SABAH
Slide 8: Nigeria Portfolio
NIGERIA PORTFOLIO LAGOS NIGERIA WARRI FORCADOS ERHA YOKRI UBIE GBARAN FORCADOS PORT HARCOURT AFAM BONGA NLNG BONNY CAMEROON BRASS SHELL POSITIONS Oil Terminal NLNG 100 KM Oil & Gas Projects Gas Pipelines Oil Pipelines SPDC SNEPCO NLNG NLNG 7
Slide 9: Peter Voser, Chief Financial Officer
ROYAL DUTCH SHELL PLC LEVERAGING A STRONG PORTFOLIO PETER VOSER CHIEF FINANCIAL OFFICER
Slide 10: Q4 2007 Highlights
Q4 2007 HIGHLIGHTS $ BLN Q4 07 Q4 06 Q407 VERSUS Q406 US$ bln, CCS basis, excl. Identified Items - EXPL. & PRODUCTION 4.2 3.1 7 - GAS & POWER 0.6 0.6 - OIL SANDS 0.0 0.2 - OIL PRODUCTS 0.7 1.4 - CHEMICALS 0.4 0.4 6 BUSINESS SEGMENTS TOTAL 5.9 5.6 CORP. & MIN. INT. (0.2) (0.1) CCS EARNINGS 5.7 5.5 5
Slide 11: Disposals Strategy on Track
DISPOSALS STRATEGY ON TRACK 2007 DISPOSALS US$9.9 BLN* 2007 PERFORMANCE OFFSHORE EUROPE LATE LIFE & UNDEVELOPED SAKHALIN RESOURCES DILUTION OTHER SKARV & IDUN STV BEB REFINING ENTERPRISE WILMINGTON REFINERY FRENCH RAG REFINERIES LPG BARNETT, WILCOX, BOOMVANG FIELDS MIDSTREAM UPSTREAM GAS OIL & GAS E
Slide 12: Investment and Choices
INVESTMENT AND CHOICES CUMULATIVE DIVESTMENT PROCEEDS CAPITAL SPENDING ON TRACK $ BLN $ BLN 2006 2007 2008E 30 ORGANIC 20 25.5 ~ 28-29 25 ACQUISITIONS 3 8.2 DISPOSALS (2) (9.9) ~ (4) NET CAPITAL SPENDING 21 23.8 ~24-25 20 15 CAPITAL EMPLOYED 2013-15 AVERAGE 10 5 2007 0 2004 2005 2006 2007 EXPLORATIO
Slide 13: Responding to the Changing Landscape
RESPONDING TO THE CHANGING LANDSCAPE CHANGING COST & PRICE ENVIRONMENT 100 • REPOSITIONING THE PORTFOLIO 80 • NEW LONG LIFE ASSETS, PRICE UPSIDE OIL PRICE: BRENT (US$) 60 • TECHNICAL AND COMMERCIAL CAPABILITIES 40 20 • CONTRACTING AND PROCUREMENT 0 2000 2002 2004 2006 2008 • STANDARDIZATION, SCALE,
Slide 14: 2007 Highlights
2007 HIGHLIGHTS SATISFACTORY RESULTS • 2007 CCS EARNINGS $ 27.6 BILLION, CCS EPS +11% • GOOD OPERATING PERFORMANCE PORTFOLIO PROGRESS • 11 MATERIAL DISCOVERIES, >6 FIDS IN 2007 • $ 9.9 BLN DISPOSALS, $ 8.2 BLN BUSINESS DEVELOPMENT STRATEGY ON TRACK • COMPETITIVE CASHFLOW: $ 39.5 BLN • CAPITAL DISCIP
Slide 15: Delivery and Growth: Q&A
DELIVERY AND GROWTH LEVERAGING A STRONG PORTFOLIO ROYAL DUTCH SHELL PLC Q&A