Slide 1: First quarter 2017 results
First quarter 2017 results Re-shaping Shell, to create a world-class investment case Royal Dutch Shell plc May 4, 2017 #makethefuture Royal Dutch Shell May 4, 2017
Slide 2: Jessica Uhl, Chief Financial Officer
Jessica Uhl Chief Financial Officer Royal Dutch Shell Royal Dutch Shell May 4, 2017
Slide 3: Definitions & cautionary note
Definitions & 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 consistent with t
Slide 4: Key messages – Momentum of delivery
Key messages – RE-SHAPING PORTFOLIO IMPROVING Momentum of SHELL PRIORITIES RESILIENCE delivery Create a world-class Cash engines Pulling levers to manage investment case financial framework today’s free cash flow Grow free cash flow per Re-set our costs Growth priorities share, higher ROCE deep wate
Slide 5: Summary
Summary Cash momentum continued from 2016 Underlying CCS earnings $3.8 billion World-class CFFO $9.5 billion investment case FCF/share + ROCE growth Q117 dividend $0.47 per share Leader: value Conservative financial + influence management Actively re-shaping Shell Divestment momentum Post completion
Slide 6: Financial highlights
Q1 2017 $ billion Q1 2016 Q1 2017 Earnings Q1 2016 to Q1 2017 Financial Upstream (1.4) 0.5 $ billion highlights Integrated Gas 1.0 1.2 0.5 ~(0.5) 4 0.2 Downstream (CCS) 2.0 2.5 ~2.0 Corporate & non-controlling (0.0) ~(0.5) interest 3 CCS net earnings 1.6 3.8 CCS earnings, $ per share 0.22 0.46 2 3.8
Slide 7: Earnings and cash flow momentum
Q1 2017 Earnings and $ billion $ billion cash flow 12 35 momentum 10 30 25 8 20 6 15 4 10 2 5 0 0 Strong cash flow momentum 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 continued from 2016 into Earnings 2017 Cash flow from operations excluding working capital Cash flow from operations excluding work
Slide 8: Upstream results – cash flow momentum
Q1 2017 Earnings Q1 2016 to Q1 2017 Cash flow momentum Upstream results $ billion $ billion $ billion – cash flow 1 ~0.1 (0.2) 6 18 ~0.0 momentum 0.3 0.2 0.5 4 12 ~1.6 0 2 6 -1 (1.4) 0 0 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2 16Q3 16Q4 17Q1 -2 -2 -6 Earnings Cash momentum Cash flow from operations excluding
Slide 9: Cash flow priorities 2016-18
Cash flow priorities 2016-18 1 2 3 Priorities Buy-backs Debt reduction Dividends for cash & capital investment Gearing end Q117: ~27% Reduce capital Reduce Deliver new Divestment momentum Divestments investment operating costs projects Powerful levers to underpin financial framework Royal Dutch Shel
Slide 10: Cash performance + payout
Cash Dividend + gearing Sources and uses of cash – Q1 2017 performance + $ billion % $ billion payout 20 30 10 (4.3) DOWNSTREAM /CORPORATE 20 IG (2.7) 10 5 9.5 UPSTREAM 10 5.2 (2.1) Priorities for cash: Debt reduction 0.5 Dividends 0 0 0 2013 2014 2015 2016 17Q1 Buy-backs + capital 4Q rolling invest
Slide 11: Gaining momentum – from 8 towards 7 themes
Reduce Reduce Deliver Divestments capital investment operating costs new projects Divestments progress UK North Sea assets Motiva JV exit Oil sands mining Gaining momentum – from 8 towards 7 themes SADAF Petrochemicals facility, Kingdom of Saudi Arabia Sale of package of UK North Integrate retained
Slide 12: Divestments
Reduce Reduce Deliver Divestments capital investment operating costs new projects Divestments 2016-2018 completed + announced $ billion Total completed – 2016 ~5.0 Announced – AOSP & other oil sands assets in Canada ~7.25 – UK North Sea ~3.00 – Motiva JV split ~2.20 – Thailand - Bongkot ~0.90 – Gabo
Slide 13: Cash momentum – Divestments and project start-ups 2014+
Reduce Reduce Deliver Divestments capital investment operating costs new projects Cash momentum Divestments program Shell projects start-ups 2014+ – Divestments $ billion Thousand boe per day / mtpa $ billion and project start- 30 1200 / 15 ups 2014+ 10 20 800 / 10 5 10 400 / 5 Divestments 2016-18:
Slide 14: Q2 2017 Outlook
Q2 – Q2 OUTLOOK: Year-ago baseline reflects Shell’s earnings seasonality Q2 2017 Integrated gas Outlook Volumes expected to be impacted by reduction of ~25 kboe/d Upstream Divestment impact: reduction of ~45 kboe/d Production in the Netherlands (NAM): reduction of ~50 kboe/d Maintenance: positive im
Slide 15: Chemicals
Growth priority Earnings + ROACE Under construction Chemicals $ billion % 425,000 tonnes additional Alpha Olefins capacity 2 20 Geismar, USA 15 New liquids cracker and derivatives units 1 10 Capacity: ~1.2 million tonnes ethylene per annum Nanhai, China 50/50 JV CNOOC 5 Greenfield FID 2016 Capacity:
Slide 16: Upstream
Operational excellence Brazil Operated: BC-10 & BJSA Southern North Sea: ONEgas Gulf of Mexico: Oil foamer Upstream Availability from 83% to 96% Availability from 74% to 92% Technology for opening a through improved reliability closed-in well Disciplined focus to deliver production optimisation and
Slide 17: Deep water Brazil
Competitive growth Production Deep water Thousand boe per day 500 Brazil 250 0 2015 2020E Actual Estimate FPSO P-66 Lula South Learning curve improvements Average # days to drill + complete Average # months first oil to plateau Impressive delivery track record continues 300 20 -50% 250 -70% 9 FPSOs
Slide 18: Summary
Summary Cash momentum continued from 2016 Underlying CCS earnings $3.8 billion World-class CFFO $9.5 billion investment case FCF/share + ROCE growth Q117 dividend $0.47 per share Leader: value Conservative financial + influence management Actively re-shaping Shell Divestment momentum Post completion
Slide 19: Questions & Answers
Questions & Answers Jessica Uhl Chief Financial Officer Royal Dutch Shell May 4, 2017 19
Slide 20: First quarter 2017 results
First quarter 2017 results Re-shaping Shell, to create a world-class investment case Royal Dutch Shell plc May 4, 2017 #makethefuture Royal Dutch Shell May 4, 2017
Slide 21: Royal Dutch Shell May 4, 2017
Royal Dutch Shell May 4, 2017