DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE

Transcription

1 DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE FIRST QUARTER 213 RESULTS ROYAL DUTCH SHELL PLC 2 MAY 213 Copyright of Royal Dutch Shell plc 2 May, 213 1

2 DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE SIMON HENRY CHIEF FINANCIAL OFFICER ROYAL DUTCH SHELL PLC 2 MAY 213 Copyright of Royal Dutch Shell plc 2 May, 213 2

3 DEFINITIONS AND CAUTIONARY NOTE The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation Shell, Shell group and Royal Dutch Shell are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words we, us and our are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. Subsidiaries, Shell subsidiaries and Shell companies as used in this presentation refer to companies in which Royal Dutch Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as associated companies or associates and companies in which Shell has joint control are referred to as jointly controlled entities. In this presentation, associates and jointly controlled entities are also referred to as equity-accounted investments. The term Shell interest is used for convenience to indicate the direct and/or indirect (for example, through our 23% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as anticipate, believe, could, estimate, expect, intend, may, plan, objectives, outlook, probably, project, will, seek, target, risks, goals, should and similar terms and phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory measures as a result of climate changes; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell s 2-F for the year ended 31 December, 212 (available at and ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, 2 May, 213. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all. We use certain terms in this presentation, such as discovery potential, that the United States Securities and Exchange Commission (SEC) guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 2-F, File No , available on the SEC website You can also obtain this form from the SEC by calling 1-8-SEC-33. Copyright of Royal Dutch Shell plc 2 May, 213 3

4 Q1 213 OVERVIEW $ billion Q1 212 Q1 213 UPSTREAM DOWNSTREAM (CCS) CORPORATE & MINORITIES -.1 Q1 213 results Q1 earnings $7.5 billion; EPS +2% CFFO $11.6 billion Q1 213 dividend increase +5% CCS NET EARNINGS CCS EARNINGS, $ PER SHARE CASH FROM OPERATIONS Growth delivery Performance from recent start-ups 4 final investment decisions SHARE BUY BACKS.5 DIVIDENDS DIVIDEND, $ PER SHARE Refreshing the portfolio Selective A&D Acquisitions: Upstream engine + integrated gas Divestments from Downstream engine Earnings CCS basis, Earnings and EPS excluding identified items. Dividends distributed in the quarter Copyright of Royal Dutch Shell plc 2 May, 213 4

5 PRICES & MARGINS SHELL OIL & GAS REALISATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS $/barrel $/mscf $/barrel $/tonne Q112 Q212 Q312 Q412 Q Q112 Q212 Q312 Q412 Q113 Q112 Q212 Q312 Q412 Q113 Oil Gas (RHS) US West Coast US Gulf Coast coking Rotterdam complex Singapore US ethane Western Europe naphtha NE/SE Asia naphtha Copyright of Royal Dutch Shell plc 2 May, 213 5

6 Q1 213 FINANCIAL HIGHLIGHTS EARNINGS Q1 212 TO Q1 213 EARNINGS Q1 212 TO Q1 213 $ billion $ billion 8 (.6) (.2).6..7 (.4) (.4) Earnings CCS basis, Earnings excluding identified items Copyright of Royal Dutch Shell plc 2 May, 213 6

7 12 MONTHS CASH PERFORMANCE GROUP UPSTREAM DOWNSTREAM $ billion $ billion $ billion CFFO ex WC movements Working capital movements Asset Sales Capex Acquisitions Dividend Buybacks BALANCING CASH GENERATION, INVESTMENT + PAYOUT Copyright of Royal Dutch Shell plc 2 May, 213 7

8 OPERATIONAL PERFORMANCE OIL AND GAS PRODUCTION million boe/day million tonnes Q1 PERFORMANCE Q1 212 Q2 212 Q3 212 Q4 212 Q1 213 Oil Gas LNG Sales (RHS) DOWNSTREAM AVAILABILITY AND SALES VOLUMES % availability volume Q1 212 Q2 212 Q3 212 Q4 212 Q1 213 Refinery availability Chemicals availability Oil products sales (mln bbl/d) Chemicals sales (million tonnes) UPSTREAM 3.6 million boe/d Growth from Pearl GTL, Pluto LNG and Eagleford LRS Increased North Sea maintenance + Nigeria sabotage Q1-Q1 underlying growth +2% DOWNSTREAM Reduced availability due to planned downtime: Gulf Coast + Germany Underlying volume decline Copyright of Royal Dutch Shell plc 2 May, 213 8

9 PORTFOLIO DEVELOPMENT Q1 213 FUTURE OPPORTUNITIES Acquisition / entry Notable discovery / project progress Carmon Creek regulatory approval FID Start-ups AOSP debottlenecking (1 kboe/d) Basrah Gas Company Divestment / (Project reframing) RESOURCES PLAYS DEEP-WATER Erha North Ph2 (6 kboe/d) INTEGRATED GAS Repsol LNG Elba LNG JV Australia: Kentish Knock gas Gulf Coast GTT Great Lakes GTT Prelude 5% dilution (Browse FLNG) UPSTREAM ENGINE Bab Sour Gas Additional equity: Beryl & Schiehallion Amal Steam (2 kboe/d) (Fram) DOWNSTREAM ENGINE Singapore Chemicals Geelong* Italy* 3 START-UPS, 4 FIDs FURTHER PORTFOLIO PROGRESS *announced intention to divest Geelong refinery in Australia and selected downstream marketing businesses in Italy Copyright of Royal Dutch Shell plc 2 May, 213 9

10 INTEGRATED GAS PROGRESS Q1 213 LNG FOR TRANSPORT Agreement with Travelcentres of America 2 LNG lanes at up to 1 TA truck stop sites LNG FOR TRANSPORT Great Lakes Corridor and Gulf Coast Corridor Each for.25 mtpa Marine & road transport ELBA LNG JV with Kinder Morgan Phase 1: 1.5 mtpa DoE FTA approval ACQUISITION REPSOL LNG ASSETS 4.2 mtpa equity capacity 7.2 mtpa long term offtake agreements $4.4 billion cash + $1.8 billion finance leases Expected to close end 213/begin 214 GOOD PROGRESS ON INTEGRATED GAS PORTFOLIO Copyright of Royal Dutch Shell plc 2 May, 213 1

11 FINANCIAL FRAMEWORK $ billion % 2 2 CASH PERFORMANCE Q1 12 months rolling Free cash flow Gearing (RHS) Dividend Buyback -1 PAY-OUT INVESTMENT $ billion BALANCE SHEET CFFO Upstream CFFO Downstream CFFI Payout 13Q1 12 months rolling MANAGING CASH CYCLE OVER TIME IMPROVED FREE CASH FLOW POSITION + CASH RETURNS BUYBACK PACE INCREASING: ~$4-5 BILLION POTENTIAL 213 Copyright of Royal Dutch Shell plc 2 May,

12 COMPETITIVE PERFORMANCE SHELL + OTHER MAJORS EARNINGS PER SHARE GROWTH % growth 6 3 CASH FLOW PER SHARE GROWTH % growth Shell 2-6 Shell PRODUCTION GROWTH % growth 5 PAYOUT dividend $ billion 212 payout ratio % Shell Shell E 212 payout % EPS: CCS earnings Payout ratio DPS declared/ LTIP EPS Copyright of Royal Dutch Shell plc 2 May,

13 DELIVERING OUR STRATEGY Q1 213 results Q1 earnings $7.5 billion; EPS +2 % CFFO $11.6 billion Q1 213 dividend increase +5% Growth delivery Performance from recent start-ups 4 final investment decisions Refreshing the portfolio Selective A&D Acquisitions: Upstream engine + integrated gas Divestments from Downstream engine Earnings CCS basis, Earnings and EPS excluding identified items Copyright of Royal Dutch Shell plc 2 May,

14 FIRST QUARTER 213 RESULTS QUESTIONS & ANSWERS Copyright of Royal Dutch Shell plc 2 May,

15 DELIVERING INNOVATIVE & COMPETITIVE PERFORMANCE FIRST QUARTER 213 RESULTS ROYAL DUTCH SHELL PLC 2 MAY 213 Copyright of Royal Dutch Shell plc 2 May,