Slide 1: Third quarter 2016 results: Re-shaping Shell, to create a world-class investment case
Third quarter 2016 results Re-shaping Shell, to create a world-class investment case Royal Dutch Shell plc November 1, 2016 “Let’s make the future” Royal Dutch Shell November 1, 2016
Slide 2: Simon Henry, Chief Financial Officer
Simon Henry Chief Financial Officer Royal Dutch Shell Royal Dutch Shell November 1, 2016
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: Summary
Summary Business mix underpins results Downstream + Integrated Gas offsetting Upstream World-class Underlying CCS earnings $2.8 billion investment case FCF/share + ROCE growth CFFO $8.5 billion Leader: value + Conservative financial Q316 dividend $0.47 per share influence management Cont
Slide 5: Financial highlights
Q3 2016 $ billion Q3 2015 Q3 2016 Earnings Q3 2015 to Q3 2016 Financial Upstream (0.6) 0.0 $ billion Environment Choice highlights Integrated Gas 0.9 0.9 Downstream (CCS) 2.6 2.1 Corporate & non-controlling (0.6) (0.2) interest CCS net earnings 2.4 2.8 CCS earnings, $ per share 0.38 0.35 Cash flow f
Slide 6: Oil and gas production
Q3 2016 Upstream + Integrated Gas – oil & gas LNG liquefaction volumes Oil and gas Million boe per day Million tonnes production 3.75 Choice: +28% 3.50 3.25 3.00 2.75 Royal Dutch Shell November 1, 2016 6
Slide 7: Sources and uses of cash
Q3 2016 Q3 2016 $ billion Q3 2016 4 Quarters Q3 2016 – 4 Quarters rolling Sources and Beginning cash 15.2 31.8 $ billion uses of cash Earnings 1.4 4.1 Depreciation 6.2 23.7 Working capital / other 0.9 (11.0) Divestments 0.3 3.3 Capex / other investment (5.5) (24.6) BG acquisition cash - (11.4) Share
Slide 8: Divestments
Reduce Reduce Deliver Divestments capital investment operating costs new projects Manage down-cycle Divestment programme 2016-2018 completed + announced $ billion Divestments $ billion 2016-2018 ~$30 billion Completed – MLP 0.8 – Denmark marketing 0.3 – N.Z.: Maui pipeline 0.2 – MGL IPO 0.1 – Others
Slide 9: Pulling levers to manage financial framework
Reduce Reduce Deliver Divestments capital investment operating costs new projects Manage down-cycle Capital investment Operating costs Pulling levers to $ billion $ billion manage -$18 billion -$9 billion financial framework Shell BG Shell + BG C.I. on a cash basis Shell BG Confirming $29 billion
Slide 10: 2016-17 start-ups
Reduce Reduce Deliver Divestments capital investment operating costs new projects Deliver new projects 2016-17 start-ups Kashagan Q3 2016 Schiehallion redevelopment 125 kboe/d 300 kboe/d Shell 17% Shell 55% Scotford HCU debottleneck Malikai 14 kbpd 60 kboe/d Shell 100% Shell 35% Pe
Slide 11: LNG supply + demand
LNG supply + LNG – Supply development LNG – Demand demand Million tonnes Million tonnes Supply growth led by Australia New buyers Royal Dutch Shell November 1, 2016 11
Slide 12: Summary
Summary Business mix underpins results Downstream + Integrated Gas offsetting Upstream World-class Underlying CCS earnings $2.8 billion investment case FCF/share + ROCE growth CFFO $8.5 billion Leader: value + Conservative financial Q316 dividend $0.47 per share influence management Cont
Slide 13: Questions & Answers
Questions & Answers Simon Henry Chief Financial Officer Maarten Wetselaar Director - Integrated Gas & new energies Royal Dutch Shell November 1, 2016 13
Slide 14: Q4 2016 Outlook
Q4 2016 Q4 – Q4 OUTLOOK: Year-ago baseline reflects Shell’s earnings seasonality Outlook Upstream Divestment impact: ~-25 kboe/d Maintenance: ~+25 kboe/d Security impact Nigeria Integrated gas Accounting reclassification Woodside: ~-34 kboe/d Maintenance: ~+15 kboe/d Downstream Ref
Slide 15: Prices & margins
Q3 2016 Shell oil & gas realisations Industry refining margins Industry chemicals margins Prices & margins $/barrel $/barrel $/tonne Oil US West Coast US ethane Gas (RHS) US Gulf Coast coking Western Europe naphtha Rotterdam complex NE/SE Asia naphtha Singapore Royal Dutch Shell November 1, 2016 15
Slide 16: Upstream results
Q3 2016 Earnings Q3 2015 to Q3 2016 Upstream results $ billion Environment Choice Lower prices Lower costs + higher volumes Earnings on CCS basis, excluding identified items Royal Dutch Shell November 1, 2016 16
Slide 17: Integrated Gas results
Q3 2016 Earnings Q3 2015 to Q3 2016 Integrated Gas $ billion Environment Choice results 1.2 0 Lower oil + gas prices Increased volumes + lower well write-offs Earnings on CCS basis, excluding identified items Royal Dutch Shell November 1, 2016 17
Slide 18: Downstream results
Q3 2016 Earnings Q3 2015 to Q3 2016 Earnings mix Downstream $ billion $ billion results Lower industry refining margins Marketing Chemicals Uplift from lower costs Refining & Trading Earnings on CCS basis, excluding identified items Royal Dutch Shell November 1, 2016 18
Slide 19: Third quarter 2016 results: Re-shaping Shell, to create a world-class investment case
Third quarter 2016 results Re-shaping Shell, to create a world-class investment case Royal Dutch Shell plc November 1, 2016 “Let’s make the future” Royal Dutch Shell November 1, 2016
Slide 20: Royal Dutch Shell November 1, 2016
Royal Dutch Shell November 1, 2016