Shell PLC · LSE:SHEL
Shell — Royal Dutch Shell — Q4 2010 Earnings Presentation
22 slides from Shell's earnings presentation, Feb 3, 2011
Slide 1: Royal Dutch Shell plc Fourth Quarter and Full Year 2010 Results
ROYAL DUTCH SHELL PLC FOURTH QUARTER AND FULL YEAR 2010 RESULTS THE HAGUE FEBRUARY 3rd, 2011 1 Copyright of Royal Dutch Shell plc 03/02/2011
Slide 2: Peter Voser, Chief Executive Officer
ROYAL DUTCH SHELL PLC FOURTH QUARTER AND FULL YEAR 2010 RESULTS PETER VOSER CHIEF EXECUTIVE OFFICER 2 Copyright of Royal Dutch Shell plc 03/02/2011
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 for all 2009 data, and includes both SEC proved oil and gas reserves and SEC proven mining reserves for 2007 and 2008 data. Resources: Our use of the term “resources” i
Slide 4: Performance
PERFORMANCE STRATEGY PRIORITIES 2010 RESULTS CCS EARNINGS $ BILLION 20 PERFORMANCE FOCUS 15 NEW WAVE OF PRODUCTION 10 GROWTH 5 MATURING NEXT GENERATION OF PROJECT OPTIONS 0 EARNINGS EXCLUDING IDENTIFIED ITEMS Competitive performance – Profitable growth – Sharper delivery 4 Copyright of Royal Dutch S
Slide 5: Performance Focus: Costs
PERFORMANCE FOCUS PERFORMANCE FOCUS: NEW WAVE OF PRODUCTION GROWTH COSTS MATURING NEXT GENERATION OF PROJECT OPTIONS UNDERLYING COSTS $ BILLION • 2010 delivery FX PENSIONS • Corporate reorganization 45 PROVISIONS • Underlying U d l i costs reduction d i off $2 $2.0 0 bln bl • -$4 bln (10%) since 200
Slide 6: Continuous Improvement: Capital Efficiency
PERFORMANCE FOCUS CONTINUOUS IMPROVEMENT: NEW WAVE OF PRODUCTION GROWTH CAPITAL EFFICIENCY MATURING NEXT GENERATION OF PROJECT OPTIONS ASSET SALES PROGRESS 2010 & 2011 YTD ~$30 BILLION DIVESTMENTS – 5 YEARS $ BILLION CUMULATIVE 9 Finland & Sweden 30 CORPORATE 9 Statfjord UPSTREAM Harburg DOWNSTREAM
Slide 7: Delivering New Growth
PERFORMANCE FOCUS DELIVERING NEW GROWTH NEW WAVE OF PRODUCTION GROWTH MATURING NEXT GENERATION OF PROJECT OPTIONS 6 NEW START-UPS IN 2010 ON TRACK FOR STRATEGIC TARGETS On track for strategic targets • Production growth • +11% 11% oilil & gas production d i 2009-12 2009 12 • 3.5 mln boe/d 2012; ~3.7
Slide 8: Qatar: Projects on Track
PERFORMANCE FOCUS QATAR: PROJECTS ON TRACK NEW WAVE OF PRODUCTION GROWTH MAJOR START-UPS 2011 MATURING NEXT GENERATION OF PROJECT OPTIONS PEARL GTL: MAJOR CONSTRUCTION COMPLETE Air separation unit •Commissioning underway; ~12 months start-up •Sequential start-up of two trains •2012 ffullll GTL capac
Slide 9: Exploration to Production: 2010 Performance
PERFORMANCE FOCUS EXPLORATION TO PRODUCTION NEW WAVE OF PRODUCTION GROWTH 2010 PERFORMANCE MATURING NEXT GENERATION OF PROJECT OPTIONS DISCOVERY APPRAISAL FID 2010 FIDs • MARS B, Gulf of Mexico •~100,000 boe/d TLP capacity (Shell 72%) •BC-10 Phase 2, Brazil •~30,000 boe/d (Shell 50%) GULF OF MEXICO
Slide 10: Maturing New Project Options
PERFORMANCE FOCUS MATURING NEW PROJECT OPTIONS NEW WAVE OF PRODUCTION GROWTH BUSINESS DEVELOPMENT: 2010 PERFORMANCE MATURING NEXT GENERATION OF PROJECT OPTIONS 2010 PROGRESS CHINA TIGHT GAS • JinQiu PSC: 4,000 km2 tight gas • Fushun JAA: 4,000 km2 shale gas • North Shiloh CBM, Ordos basin • Drilling
Slide 11: Operational Excellence
OPERATIONAL EXCELLENCE OIL & GAS PRODUCTION RELIABILITY LNG RELIABILITY 100% 100% 90% 90% 80% 80% 70% 70% 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 DOWNSTREAM AVAILABILITY SAFETY PERFORMANCE REFINING - % OF EQUIVALENT DISTILLATION CAPACITY INJURIES - TRCF PER MILLION WORKING HOURS CHEMICALS
Slide 12: Simon Henry, Chief Financial Officer
ROYAL DUTCH SHELL PLC FOURTH QUARTER AND FULL YEAR 2010 RESULTS SIMON HENRY CHIEF FINANCIAL OFFICER 12 Copyright of Royal Dutch Shell plc 03/02/2011
Slide 13: Prices and Margins
PRICES AND MARGINS SHELL OIL & GAS REALIZATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS $/BARREL $/MSCF $/BARREL $/TONNE 7 12 600 80 10 500 8 6 400 70 6 300 4 60 5 200 2 0 100 50 4 -2 2 0 US ETHANE US WEST COAST ROTTERDAM OIL O GAS G S ((RHS) S) WESTERN EUROPE NAPHTHA US GULF COAST SING
Slide 14: Q4 2010 Financial Highlights
Q4 2010 FINANCIAL HIGHLIGHTS CCS EARNINGS ($ BILLION) CCS EARNINGS Q4 2009 TO Q4 2010 $ BILLION 5 Q4 10 Q4 09 UPSTREAM 3.4 2.8 DOWNSTREAM (CCS) 0.5 (0.4) 4 BUSINESS SEGMENTS TOTAL 3.9 2.4 CORPORATE & MINORITIES 0.2 0.4 CCS NET EARNINGS 4.1 2.8 3 CCS EARNINGS, $ PER SHARE 0.67 0.45 CASH FROM OPERATIO
Slide 15: Upstream Performance
UPSTREAM PERFORMANCE EARNINGS OIL & GAS PRODUCTION $ BILLION MILLION BOE/D 5 3.4 4 3.2 3 CONTROLLABLE 2 3.0 1 0 2.8 Q409 Q110 Q210 Q310 Q410 OTHER UPSTREAM INTEGRATED GAS EXCLUDING IDENTIFIED ITEMS 15 Copyright of Royal Dutch Shell plc 03/02/2011
Slide 16: Downstream Performance
DOWNSTREAM PERFORMANCE CCS EARNINGS AVAILABILITY AND SALES VOLUMES $ BILLION % AVAILABILITY VOLUME 100 7 15 1.5 1 95 6 0.5 90 5 0 85 4 -0.5 -1 1 80 3 Q409 Q110 Q210 Q310 Q410 Q409 Q110 Q210 Q310 Q410 OIL PRODUCTS REFINERY AVAILABILITY OIL PRODUCT SALES (MLN BBLS/D) CHEMICALS CHEMICALS AVAILABILITY C
Slide 17: Cash Performance 12 Months
CASH PERFORMANCE 12 MONTHS BUSINESSES GROUP $ BILLION $ BILLION 35 50 UPSTREAM DOWNSTREAM SOURCES USES SOURCES 30 USES 40 25 30 20 15 SOURCES 20 10 USES 10 5 0 0 CASH FLOW FROM OPERATIONS EXCL. NET ACQUISITIONS MOVEMENTS IN WORKING CAPITAL CAPEX (EXCL. ACQUISITIONS) + EQUITY ACC. INVESTMENTS ASSET S
Slide 18: Investment and Balance Sheet
INVESTMENT AND BALANCE SHEET BALANCE SHEET GEARING % CAPITAL EMPLOYED $ BILLION RETURN % 30% 200 40% Gearing Gea g range a ge 150 20% 100 20% 10% 50 0% 0 0% Q405 Q406 Q407 Q408 Q409 Q410 2005 2006 2007 2008 2009 2010 OTHER ROACE CAPITAL IN SERVICE RETURN ON CAPITAL IN SERVICE CAPITAL INVESTMENT CAPI
Slide 19: Peter Voser, Chief Executive Officer
ROYAL DUTCH SHELL PLC FOURTH QUARTER AND FULL YEAR 2010 RESULTS PETER VOSER CHIEF EXECUTIVE OFFICER 19 Copyright of Royal Dutch Shell plc 03/02/2011
Slide 20: Summary
SUMMARY STRATEGY PRIORITIES 2010 DELIVERY •2010 CCS earnings g $18 $ bln ((EPS +56%)) PERFORMANCE FOCUS •Oil & gas volumes 3.3 mln boe/d (+ 5%) •$2 bln underlying cost savings •$7 bln asset sales •6 new start-ups 2010 NEW WAVE OF PRODUCTION GROWTH •Qatargas 4 starting up; Pearl GTL on track •Launche
Slide 21: Q&A
ROYAL DUTCH SHELL PLC FOURTH QUARTER AND FULL YEAR 2010 RESULTS Q&A 21 Copyright of Royal Dutch Shell plc 03/02/2011
Slide 22: Royal Dutch Shell plc Fourth Quarter and Full Year 2010 Results
ROYAL DUTCH SHELL PLC FOURTH QUARTER AND FULL YEAR 2010 RESULTS THE HAGUE FEBRUARY 3rd, 2011 22 Copyright of Royal Dutch Shell plc 03/02/2011