Third quarter 2017 results Re-shaping Shell, to create a world-class investment case Royal Dutch Shell plc November 2, 2017 #makethefuture Royal Dutch Shell November 2, 2017
Jessica Uhl Chief Financial Officer Royal Dutch Shell Royal Dutch Shell November 2, 2017
Definitions & Underlying operating cost is defined as operating cost less identified items. A reconciliation can be found in the quarterly results announcement. Divestments. A reconciliation can be found in the quarterly results announcement. cautionary note The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this prese ntation “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 comp any or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies over which Royal Dutch Shell plc either directly or indirectly has control. Entities and unincorporated arrangements over which Shell has joint control are generally referred to as “joint ventures” and “joint operations” respectively. Entities over which Shell ha s significant influence but neither control nor joint control are referred to as “associates”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest hel d 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 t hat 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 mar ket risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of term s and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “sch edu le”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ 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 She ll’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 regulatory measures addressing climate change; (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. No assurance is provided that future dividend payments will match or exceed previous dividend payments. 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 risk factors that may affect future results are contained in Royal Dutch Shell’s 20 -F for the year ended December 31, 2016 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, November 2, 2017. Neither Royal Dutch Shell plc 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. This presentation may contain references to Shell’s website. These references are for the readers’ conv enience only. Shell is not incorporating by reference any information posted on www.shell.com. We may have used certain terms, such as resources, in this presentation that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. Royal Dutch Shell November 2, 2017 3
Summary Q3 3 2017 2017 – cash momentum Underlying CCS earnings $4.1 billion CFFO excl. working capital $10 billion Free cash flow $3.7 billion World-class Q317 dividend $0.47 per share investment case FCF/share + ROCE growth Lea eader: val er: value ue Conservative financial + influen + infl uence ce management Q3 3 2017 2017 – 4 q 4 quarters rollin ing CFFO excl. working capital $40 billion Cash dividend covered Red educ ucing g our ur Shared red Balance sheet: 25.4% gearing carbon carb val value ue with th intens tensity ty socie ciety ty Royal Dutch Shell November 2, 2017 4
Q3 2017 Portfolio highlights Gbaran-Ubie – Phase 2 Mexico – Retail country entry Appomattox hull arrival USGC Prelude sail away – arrived in Australia Royal Dutch Shell November 2, 2017 5
Q3 2017 Shell oil il & g gas realis isatio ions Industry refin inin ing margin ins Industry chemic icals margin ins Prices & margins $/barrel $/mscf $/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 2, 2017 6
Q3 2017 Q3 201 3 2016 Q3 201 3 2017 $ b $ bil illion ion Earnin ings Q3 2016 to Q Q3 2017 Financial Upstream 0.0 0.6 $ billion highlights Integrated Gas 0.9 1.3 Downstream (CCS) 2.1 2.7 Corporate & (0.2) (0.4) non-controlling interest CCS n net e earnings 2. 2.8 4. 4.1 CCS earnings, $ per share 0.35 0.50 Cash f flow f from operations 8.5 8.5 7.6 7.6 Free cash flow 3. 3.3 3. 3.7 Dividend 3.8 3. 4. 4.0 ROACE (%) 2.8 2. 4. 4.6 Earnings and ROACE on CCS basis, excluding identified items Royal Dutch Shell November 2, 2017 7
Q3 2017 $ billion $ billion Cash momentum $51 $107 Strong cash flow momentum contin inued d from 2016 in into 2017 CFFO excludin ing g workin ing Cash flow from operations excluding working capital capit ital (4 quarters rollin ing): Cash flow from operations excluding working capital – 4 quarters rolling (RHS) $40 bil illio ion @ $51/bbl bbl Earnings Average Brent oil price - 4 quarters rolling ($/bbl) Earnings on CCS basis, excluding identified items Royal Dutch Shell November 2, 2017 8
Q3 2017 Upstream + Integrated d Gas – oil il & gas LNG liq iquefactio ion volumes Oil and gas Million boe per day Million tonnes production + 4.00 LNG liquefaction volumes 3.75 3.50 3.25 3.00 Royal Dutch Shell November 2, 2017 9
Q3 2017 Earnin ings Q3 2016 to Q Q3 2017 Earnings $ billion Royal Dutch Shell November 2, 2017 10
Financial and competitive Earnin ings – Chemic icals Competit itiv ive performance – ROACE 4Q rollin ing performance $ billion $/barrel % Chemicals Average: $104 CHEMICALS Average: $49 Improve base busin iness 13Q1 14Q1 15Q1 16Q1 17Q2 Expand current base Earnings Average Brent oil price (RHS) Peer group Shell portfolio io Addin ing to portfolio io - growth Earnings and ROACE on CCS basis, excluding identified items; source: company reports, Shell analysis Chemicals peer group: XOM, LBI, DOW, RDS. Q3 2017 competitor data not yet available Royal Dutch Shell November 2, 2017 11
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