Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q1 2015 Earnings Presentation
20 slides from Shell's earnings presentation, Apr 30, 2015
Slide 1: Balancing Growth and Returns: First Quarter 2015 Results
BALANCING GROWTH AND RETURNS FIRST QUARTER 2015 RESULTS ROYAL DUTCH SHELL 30 APRIL 2015 Copyright of Royal Dutch Shell plc 30 April, 2015 1
Slide 2: Simon Henry, Chief Financial Officer
SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC Copyright of Royal Dutch Shell plc 30 April, 2015 2
Slide 3: Definitions & Cautionary Note
DEFINITIONS & CAUTIONARY NOTE NOT FOR RELEASE, PRESENTATION, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISIDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. The information set out in this presentation is not intended to form
Slide 4: Shell + BG: A Compelling Combination
SHELL + BG: A COMPELLING COMBINATION Accelerates deep water + LNG strategy Accretive to earnings and cash flow per share 1 Complementary portfolios: synergy opportunity Enhanced portfolio: springboard to high-grade Shell + BG Improved cash flow enhances future dividends + buyback potential
Slide 5: Priorities + Delivery
PRIORITIES + DELIVERY Priorities Q1 2015 delivery CCS earnings $3.2 billion Competitive financial CFFO $7.1 billion performance Dividend Q1 2015 $0.47 per share Restructuring + cost drive Returns and cash flow Reducing capital investment 2015: ~$33 billion Capital efficiency ~$2.2 bill
Slide 6: Prices & Margins
PRICES & MARGINS Shell oil & gas realisations Industry refining margins Industry chemicals margins $/barrel $/mscf $/barrel $/tonne Oil US West Coast US ethane Gas (RHS) US Gulf Coast coking Western Europe naphtha Gas - rest of world (RHS) Rotterdam complex NE/SE Asia naphtha Gas - Americas (RHS) Si
Slide 7: Q1 2015 Financial Highlights
Q1 2015 FINANCIAL HIGHLIGHTS Earnings Q1 2014 to Q1 2015 $ billion Q1 Q1 2014 2015 $ billion UPSTREAM 5.7 0.7 DOWNSTREAM (CCS) 1.6 2.6 CORPORATE & MINORITIES 0.0 (0.1) CCS NET EARNINGS 7.3 3.2 CCS EARNINGS, $ PER SHARE 1.17 0.52 CASH FROM OPERATIONS 14.0 7.1 ROACE (%) 8.7 8.4 SHARE BUYBACKS 1.2 0.4
Slide 8: Upstream Results Q1 2015
UPSTREAM RESULTS Q1 2015 Earnings Q1 2014 to Q1 2015 $ billion Significant price & FX impacts Environment Choice Uplift from growth projects + costs Earnings on CCS basis, excluding identified items. Copyright of Royal Dutch Shell plc 30 April, 2015 8
Slide 9: Upstream Performance Q1 2015
UPSTREAM PERFORMANCE Q1 2015 Production million boe per day Divestment impact 3.3 Underlying growth Underlying +1% 3.0 2.7 Copyright of Royal Dutch Shell plc 30 April, 2015 9
Slide 10: Downstream Results Q1 2015
DOWNSTREAM RESULTS Q1 2015 Earnings Q1 2014 to Q1 2015 $ billion Stronger refining margin environment Operational performance Self-help programmes Earnings on CCS basis, excluding identified items Copyright of Royal Dutch Shell plc 30 April, 2015 10
Slide 11: Operating Cost Reduction
OPERATING COST REDUCTION Operating costs Supply chain Index Q4 2010=100; 4Q rolling Low-cost countries + global suppliers Standardisation Overheads Right-sizing with asset sales Offshoring + efficiency drive 2011 2012 2013 2014 2015 IHS Upstream operating Shell Peer group costs index Multi
Slide 12: Cash Performance + Payout
CASH PERFORMANCE + PAYOUT Cash flow Cash generation – Q115 4Q rolling $ billion $ billion $ billion DOWN- STREAM UP- STREAM CFFO CFFI CFFO CFFI Free cash flow (RHS) Dividend and buyback Dividend + buyback $ billion % Revised financial priorities following BG transaction: Debt reduction Dividen
Slide 13: Q2 2015 Outlook
Q2 2015 OUTLOOK Q2 – Q2 OUTLOOK: Upstream Divestment impact: ~-160 kboe/d Planned maintenance: ~-140 kboe/d NAM curtailment & underground storage: ~-100 kboe/d Downstream Refinery availability lower Divestment impact: ~-120 kbpd refining capacity; ~-230 kbpd marketing Moerdijk chemic
Slide 14: Asset Sales Progress 2015
ASSET SALES PROGRESS 2015 Nigeria SPDC restructuring Oil Products – portfolio restructuring Selective Growth: China LNG for transport Premium fuels + lubes Refinery crude flexibility Fix: others Motiva Attractiveness Singapore fuels Pernis + Rheinland Malaysia Moerdijk Exit: ot
Slide 15: Moderating Our Capital Investment
MODERATING OUR CAPITAL INVESTMENT Capital investment - sector Capital investment - Shell $ billion, 4Q rolling $ billion Project re-phasing / deferral Supply chain savings Dilutions + exits Shell Peer group Organic Acquisitions Revised outlook for 2015: ~$33 billion or lower Continuing to
Slide 16: Financial Dashboard
FINANCIAL DASHBOARD Cash flow from operations Free cash flow $ billion $ billion Q115 4Q rolling Shell Peer group ROACE - underlying % Driving competitive performance Free cash flow: cash flow from operations less cash used in investing activities ROACE underlying: European companies: CCS basis ex
Slide 17: Priorities + Delivery
PRIORITIES + DELIVERY Priorities Q1 2015 delivery CCS earnings $3.2 billion Competitive financial CFFO $7.1 billion performance Dividend Q1 2015 $0.47 per share Restructuring + cost drive Returns and cash flow Reducing capital investment 2015: ~$33 billion Capital efficiency ~$2.2 bill
Slide 18: Questions & Answers
QUESTIONS & ANSWERS FIRST QUARTER 2015 RESULTS ROYAL DUTCH SHELL 30 APRIL 2015 Copyright of Royal Dutch Shell plc 30 April, 2015 18
Slide 19: Balancing Growth and Returns: First Quarter 2015 Results
BALANCING GROWTH AND RETURNS FIRST QUARTER 2015 RESULTS ROYAL DUTCH SHELL 30 APRIL 2015 Copyright of Royal Dutch Shell plc 30 April, 2015 19
Slide 20: Sensitivities
SENSITIVITIES 2015 Outlook Brent: $10/bbl Brent +/- ~$3.3 billion earnings per annum Henry Hub: $1/mmbtu +/- $300 million earnings per annum Tax liability foreign exchange impact to earnings (non-cash; after tax): Australian dollar: 0.01ct change AUD/USD: ~$60 million earnings impact Brazi