Shell PLC · LSE:SHEL

Shell — Q2 2005 Earnings Presentation

18 slides from Shell's earnings presentation, Jul 28, 2005

  1. Slide 1: Q2 2005 Results

    Q2 2005 Results 28 July 2005

  2. Slide 2: Disclaimer statement

    Disclaimer statement The following presentation contains forward-looking statements, that are subject to risk factors associated with the oil, gas, power, chemicals and renewables business. It is believed that the expectations reflected in these statements are reasonable, but may be affected by a va

  3. Slide 3: Good financial performance

    Good financial performance Q2 2005 Q2 2004 $ billion $ billion Income up 34% 5.2 3.9 CCS* earnings up 26% 4.6 3.7 Cash from operations** up 20% 8.7 7.2 Divestment proceeds 0.7 0.2 Capital investment*** 3.7 3.1 Dividend per share €0.23 * CCS for Oil Products segment only ** excluding working capital

  4. Slide 4: Q2 2005: Highlights

    Q2 2005: Highlights • EP – Exploration success, production above expectations • GP – Growing the industry leading LNG portfolio • Downstream – Record operational profits and exceptional cash generation • Divestment progress • Delivering unification

  5. Slide 5: Oil prices and industry margins

    Oil prices and industry margins Crude Oil Prices Refining Margins Cracker Margins $/bbl $/bbl $/t 60 20 600 50 16 500 40 400 12 30 300 8 20 200 10 4 100 0 0 0 2004 2004 2004 2005 2005 2004 2004 2004 2005 2005 2004 2004 2004 2005 2005 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 WTI Brent ANS USWC co

  6. Slide 6: Exploration and Production performance

    Exploration and Production performance Production mboe/d • Earnings increased by 48% 3.8 New Field/ Field • Q2 2005 production up 2% Ramp-up Decline excluding divestments and Middle Divestments/ Mid East East gas contract Field Other Gas Perfor- Price/ mance • New field production and ramp up Demand

  7. Slide 7: Exploration success

    Exploration success Norway USA Alaska Big Cat Beaufort prospect Sea Faroes Canada 2nd Orphan Round Farm-in Ukraine BC Land MOU USA Sales Algeria GOM Lease 6th Malaysia sales RoundLibya E Sabah Columbia R. LNG deal Egypt DW Basin W. appraisals DW well Desert Pen. Nigeria Malaysia 3 Big Cat prospects

  8. Slide 8: GP: Portfolio progress

    GP: Portfolio progress Qalhat LNG construction Gasunie divestment Regas terminal JV Sakhalin further LNG • LNG volumes up 2% including contracts planned shut downs • LNG prices up Greater Gorgon enters FEED • 11 mtpa capacity* – well above phase competition Qatar LNG NLNG T4+T5 construction NWS FID

  9. Slide 9: LNG – platform for long term growth

    LNG – platform for long term growth LNG Capacity (Shell Share*) - mtpa Further Potential Developments LNG Expansion 35 Olokola T2 • Gorgon Olokola T1 • Sakhalin Nigeria 7/8 • Persia 30 Persia T2 Persia T1 LNG Greenfield 25 QatarGas 4 • Libya Gorgon T2 • Sunrise (Australia) Gorgon T1 • Venezuela 20 N

  10. Slide 10: Downstream macro environment Q2/05 vs Q1/05

    Downstream macro environment Q2/05 vs Q1/05 Europe MF MK USGC USWC MF MF US Mid-West Asia Pacific MF MK MF MK MK Africa MK MF Latin MK America MF MF: Industry Marker Margins <  $2.0/bbl MK MK: Marketing Margins (Gasoline Margins in US) >  $2.0/bbl

  11. Slide 11: Oil Products: delivery continues

    Oil Products: delivery continues Oil Products global adjusted unit CCS earnings per barrel* • CCS earnings over $2.0 bln 3.0 Shell Competitor range • Excellent operational 2.5 performance 2.0 • Highly competitive unit earnings 1.5 • Refinery intake volumes up 1%, excluding divestments 1.0 • Marketin

  12. Slide 12: Oil Products: excellent cash generation

    Oil Products: excellent cash generation Q2 2005 Cash In $4.0 bln Q2 2005 Cash Out $2.3 bln 0.3 Divestments $1.7 bln excess cash 0.1 0.7 Capital Investment 3.7 DACF 0.5 2.5 1.6 Working capital 1.3 Q2 2004 Q2 2005 Q2 2004 Q2 2005

  13. Slide 13: Chemicals: strong cash generation

    Chemicals: strong cash generation Asset utilisation rates 86% • Earnings of $0.3 bln • Cash from operations $0.8 bln 84% • Asset utilisation 84% in high 82% turnaround quarter 80% • Price realisations up 26% on Q2 04, offset by feedstock 78% costs 76% 2002 2003 2004 Q105 Q205

  14. Slide 14: Focus on cash

    Focus on cash Q2 2005 Cash In $9.5 bln Q2 2005 Cash Out $8.1 bln Divestments 0.7 $1.4 bln excess cash 2.3 Working Capital* 2.1 Dividends DACF 8.8 3.7 Capital Investment** * Net working capital and taxation accrued/paid ** Shell share

  15. Slide 15: Growing the business

    Growing the business Capital Investment* $bln $15 bln $6.5 bln 1.5 0.5 $2.8 bln 0.5 0.2 4.5 2.1 Q1 Q2 YTD Year end EP GP Downstream/Other * Excluding minority interest in Sakhalin

  16. Slide 16: Divestment progress - $9.3 bln to date

    Divestment progress - $9.3 bln to date 2006 $15 bln Target range $12- $15 bln Including Gasunie $11.0 bln Q2 2005 $9.3 bln 2004 $7.6 bln Basell + Intergen agreed, proceeds in second half 2005

  17. Slide 17: Looking ahead

    Looking ahead • Build on exploration success – Exploration programme increased to $1.8 bln • Capital investment remains at $15 bln for 2005 – 2006 and beyond under review • Reaffirm commitment to return surplus cash to shareholders – Buybacks to recommence – $3–$5 bln in 2005 – $13–$15 bln cash to s

  18. Slide 18: Slide 18

Shell — Q2 2005 Earnings Presentation on 6ix