Shell Plc · LSE:SHEL
Shell — Royal Dutch Shell — Q3 2008 Earnings Presentation
17 slides from Shell's earnings presentation, Oct 30, 2008
Slide 1: Third Quarter 2008 Results
ROYAL DUTCH SHELL PLC BUILDING NEW HEARTLANDS THIRD QUARTER 2008 RESULTS 30 OCTOBER 2008
Slide 2: Jeroen van der Veer, Chief Executive
ROYAL DUTCH SHELL PLC BUILDING NEW HEARTLANDS JEROEN VAN DER VEER CHIEF EXECUTIVE
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 and SEC proven mining reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil
Slide 4: Q3 2008 Highlights
Q3 2008 HIGHLIGHTS COMPETITIVE RESULTS • CCS earnings $8.8 billion; EPS +47% • Strong oil & gas prices; weaker downstream environment • Good operating performance PORTFOLIO PROGRESS • Asset sales • Canada tight gas acquisitions add ~1bn boe resources STRATEGY ON TRACK • Maintaining capital disciplin
Slide 5: Portfolio Update Q3 2008
PORTFOLIO UPDATE Q3 2008 CCS WEYBURN-MIDALE IOGEN BIOFUELS SWITZERLAND RETAIL CHINA REFINERY & CHUKCHI PETROCHEMICALS LOI MONTNEY TIGHT GAS & CBM VIRENT BIOFUELS TECHNOLOGY DUVERNAY CCS WESTCARB GULF OF MEXICO HYDROGEN LA SOUTH IRAQ GAS COLOMBIA LLANOS ESTE EXMOUTH PERU MOU BPZ ARROW COAL BED METHAN
Slide 6: Canada Tight Gas
CANADA TIGHT GAS BUILDING NEW HEARTLANDS Canada USA MONTNEY PLAY Foothills Kilometers 0 50 100 200 300 400 • 1 billion boe tight gas resources added in 2008 at US$1 / thousand standard cubic feet • Further exploration potential ALBERTA DEEP BASIN DUVERNAY ACQUISTION MONTNEY SHELL ADDITIONS 2008 OTHE
Slide 7: Peter Voser, Chief Financial Officer
ROYAL DUTCH SHELL PLC BUILDING NEW HEARTLANDS PETER VOSER CHIEF FINANCIAL OFFICER
Slide 8: Prices and Margins
PRICES AND MARGINS OIL & GAS PRICES INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS* $/BBL $/MMBtu $/BBL $/T 140 12 16 600 14 130 11 500 12 120 10 400 10 110 9 8 300 100 8 6 200 90 7 4 80 6 100 2 70 5 0 0 Q307 Q407 Q108 Q208 Q308 Q307 Q407 Q108 Q208 Q308 Q307 Q407 Q108 Q208 Q308 BRENT JCC* US W
Slide 9: Q3 2008 Financial Highlights
Q3 2008 FINANCIAL HIGHLIGHTS $ BLN EARNINGS ($ BLN) Q3 08 Q3 07 Q3 2008 VERSUS Q3 2007 ($ BILLION) - EXPL. & PRODUCTION 4.9 3.2 - GAS & POWER 1.4 0.6 10 - OIL SANDS 0.3 0.2 - OIL PRODUCTS 2.2 1.5 9 - CHEMICALS 0.1 0.3 BUSINESS SEGMENTS TOTAL 9.0 5.8 8 NET EARNINGS 8.8 6.2 7 EARNINGS PER SHARE ($) 1.
Slide 10: Upstream Performance
UPSTREAM PERFORMANCE EARNINGS OIL & GAS PRODUCTION $ BILLION MLN BOE/D MLN TONNES 7 4 4 6 3 3 5 4 2 2 3 2 1 1 1 0 0 0 Q307 Q407 Q108 Q208 Q308 Q307 Q407 Q108 Q208 Q308 EXPLORATION & PRODUCTION OIL SANDS OIL EQUITY LNG SALES (MLN TONNES) GAS & POWER GAS 9 Excluding Identified Items
Slide 11: Downstream Performance
DOWNSTREAM PERFORMANCE CCS EARNINGS AVAILABILITY AND SALES VOLUMES $ BILLION % AVAILABILITY VOLUME 2.5 100 7 2.0 95 6 1.5 90 5 1.0 85 4 0.5 0.0 80 3 Q307 Q407 Q108 Q208 Q308 Q307 Q407 Q108 Q208 Q308 OIL PRODUCTS CHEMICALS REFINERY AVAILABILITY OIL PRODUCT SALES (MLN BBLS/D) CHEMICALS CHEMICALS SALES
Slide 12: Disposals Strategy on Track Q3 2008
DISPOSALS STRATEGY ON TRACK Q3 2008 CUMULATIVE DIVESTMENT PROCEEDS 2008 DISPOSALS $ BILLION 30 RAINBOW EUROPE UPSTREAM PIPELINE 25 BEB 20 FRENCH 15 REFINERIES BOOMVANG BIG FOOT 10 NIGERIA OFFSHORE NWS OIL ASSETS 5 0 2004 2005 2006 2007 9M 08 UPSTREAM DOWNSTREAM OTHER ANNOUNCED COMPLETED UPSTREAM DOW
Slide 13: Cash Performance 12M
CASH PERFORMANCE 12M BUSINESS CASH GROUP CASH $ BILLION $ BILLION 45 UPSTREAM DOWNSTREAM 60 SOURCES USES SOURCES 40 ASSET SALES 50 35 ACQUISITIONS USES DOWNSTREAM 30 40 PAYOUT 25 30 20 SOURCES UPSTREAM 15 20 ORGANIC CAPITAL 10 SPENDING USES 10 5 0 0 EXPLORATION & PRODUCTION OIL PRODUCTS ASSET SALES
Slide 14: Q3 2008 Highlights
Q3 2008 HIGHLIGHTS COMPETITIVE RESULTS • CCS earnings $8.8 billion; EPS +47% • Strong oil & gas prices; weaker downstream environment • Good operating performance PORTFOLIO PROGRESS • Asset sales • Canada tight gas acquisitions add ~1bn boe resources STRATEGY ON TRACK • Maintaining capital disciplin
Slide 15: Delivery and Growth: Q&A
DELIVERY AND GROWTH BUILDING NEW HEARTLANDS ROYAL DUTCH SHELL PLC Q&A
Slide 16: Third Quarter 2008 Results
ROYAL DUTCH SHELL PLC BUILDING NEW HEARTLANDS THIRD QUARTER 2008 RESULTS 30 OCTOBER 2008
Slide 17: Appendix: Key Projects
APPENDIX: KEY PROJECTS START UP PROJECT COUNTRY SHELL PEAK LNG 100% PRODUCTS CATEGORY SHELL SHARE PRODUCTION CAPACITY OPERATED % kboe/d mtpa 2008- 2009 AFAM GAS SUPPLY NIGERIA 30 46 BC 10 BRAZIL 50 100 NW SHELF LNG T5 /ANGEL AUSTRALIA 22.3 145 4.4 PERDIDO USA 35.4 130 SAKHALIN II /LNG T1-2 RUSSIA 27