Diese Präsentation wurde erfolgreich gemeldet.
Wir verwenden Ihre LinkedIn Profilangaben und Informationen zu Ihren Aktivitäten, um Anzeigen zu personalisieren und Ihnen relevantere Inhalte anzuzeigen. Sie können Ihre Anzeigeneinstellungen jederzeit ändern.
Royal Dutch Shell February 2, 2017
Royal Dutch Shell plc
February 2, 2017
Fourth quarter 2016 results
Re-shaping Shell, to...
Royal Dutch Shell February 2, 2017
Ben van Beurden
Chief Executive Officer
Royal Dutch Shell
Royal Dutch Shell February 2, 2017 3
Definitions &
cautionary note
Reserves: Our use of the term “reserves” in this presen...
Royal Dutch Shell February 2, 2017 4
Key messages
 Cash engines
 today’s free cash flow
 Growth priorities
 deep water...
Royal Dutch Shell February 2, 2017 5
Transition 2016 +
delivery 2017+
Earnings on CCS basis, excluding identified items
Bu...
Royal Dutch Shell February 2, 2017
Strong free cash flow and returns
Re-shape Shell
Driving strategy
in multiple time
hori...
Royal Dutch Shell February 2, 2017 7
Re-shape Shell
Divestments
progress:
Gaining
momentum
Showa Shell SADAF JV exit UK No...
Royal Dutch Shell February 2, 2017 8
Re-shape Shell
Capital
discipline,
supporting
growth
Excludes BG acquisition in 2016
...
Royal Dutch Shell February 2, 2017
Shell
Prince Rupert
9
Re-shape Shell
2016: Moving quickly
on office footprint
# staff x...
Royal Dutch Shell February 2, 2017 10
Portfolio priorities
Delivering growth now
2016 start-up production: once fully ramp...
Royal Dutch Shell February 2, 2017 11
Re-shape Shell
Financial
performance:
On-track
2019-21: 2016 RT $60 scenario, mid-cy...
Royal Dutch Shell February 2, 2017
Simon Henry
Chief Financial Officer
Royal Dutch Shell
Royal Dutch Shell February 2, 2017
$ billion Q4 2015 Q4 2016
Upstream (1.0) 0.1
Integrated Gas 1.2 0.9
Downstream (CCS) 1....
Royal Dutch Shell February 2, 2017 14
Q4 2016
Earnings and
cash flow
momentum
Earnings on CCS basis, excluding identified ...
Royal Dutch Shell February 2, 2017
2016 Reserves performance
 2016 RRR 208%
 2014-16 RRR 81%
 BG Feb’16 ~2.4 billion bo...
Royal Dutch Shell February 2, 2017 16
Integration with BG
BG portfolio
is delivering
Thousand boe per day
Increasing produ...
Royal Dutch Shell February 2, 2017 17
Re-shape Shell
Integrated Gas
from growth
priority to cash
engine –
Global LNG
Earni...
Royal Dutch Shell February 2, 2017 18
Improving our
Downstream
footprint and
performance
Earnings and ROACE on CCS basis, ...
Royal Dutch Shell February 2, 2017 19
Deep water:
Growing now Thousand boe per day
 2016 delivery good progress to 2020 p...
Royal Dutch Shell February 2, 2017 20
Americas shales:
Growth to come
Discovered + prospective resources shown at year end...
Royal Dutch Shell February 2, 2017 21
Manage down-cycle
Cash flow
priorities 2016-18
 Powerful levers to underpin
financi...
Royal Dutch Shell February 2, 2017 22
Manage down-cycle
Divestments
2016-2018 2016-2018 completed + announced ($ billion)
...
Royal Dutch Shell February 2, 2017
BG
$25-30 billion
23
Manage down-cycle
Predictable high-
quality
investment
funnel
Excl...
Royal Dutch Shell February 2, 2017 24
Manage down-cycle
Reduce
operating cost:
20% down in
2 years
Operating costs excludi...
Royal Dutch Shell February 2, 2017
2016 CFFO (RHS)
25
Manage down-cycle
Deliver new
projects:
~$10 billion
by 2018
BG orga...
Royal Dutch Shell February 2, 2017 26
Capital investment excludes BG acquisition; BG organic growth from 1.1.2016; *2016 R...
Royal Dutch Shell February 2, 2017
Ben van Beurden
Chief Executive Officer
Royal Dutch Shell
Royal Dutch Shell February 2, 2017 28
Key messages
 Cash engines
 today’s free cash flow
 Growth priorities
 deep wate...
Royal Dutch Shell February 2, 2017 29
Questions & Answers
Ben van Beurden
Chief Executive Officer
Simon Henry
Chief Financ...
Royal Dutch Shell February 2, 2017
Royal Dutch Shell plc
February 2, 2017
Fourth quarter 2016 results
Re-shaping Shell, to...
Royal Dutch Shell February 2, 2017 31
Q1 2017
Outlook
Q1 – Q1 OUTLOOK: Year-ago baseline reflects Shell’s earnings seasona...
Royal Dutch Shell February 2, 2017
Q4 2016
Prices & margins $/barrel
Shell oil & gas realisations
$/barrel
Industry refini...
Royal Dutch Shell February 2, 2017 33
Q4 2016
Upstream results
Earnings on CCS basis, excluding identified items
$ billion...
Royal Dutch Shell February 2, 2017 34
Q4 2016
Integrated Gas
results
Earnings on CCS basis, excluding identified items
$ b...
Royal Dutch Shell February 2, 2017 35
Q4 2016
Downstream
results
Earnings on CCS basis, excluding identified items
$ billi...
Royal Dutch Shell February 2, 2017
2.75
3.00
3.50
36
Q4 2016
Oil and gas
production
Million boe per day
Upstream + Integra...
Royal Dutch Shell February 2, 2017 37
2016
Financial
highlights
Earnings on CCS basis, excluding identified items
$ billio...
Royal Dutch Shell February 2, 2017
Financial
dashboard
Competitive financial data as published. Free cash flow: cash flow ...
Royal Dutch Shell February 2, 2017
$ billion Q4 2016 2016
Beginning cash 20.0 31.8
Earnings 1.6 4.8
Depreciation 6.6 25.0
...
Royal Dutch Shell February 2, 2017
Projects under
construction
40
Start up Project Country Shell share
(direct &
indirect)...
Royal Dutch Shell February 2, 2017
Pre-FID options
* Production shown is FPSO oil capacity as per operator
41
Phase Projec...
Royal Dutch Shell February 2, 2017
Nächste SlideShare
Wird geladen in …5
×

Royal Dutch Shell plc fourth quarter 2016 results webcast presentation

32.823 Aufrufe

Veröffentlicht am

Ben van Beurden, Chief Executive Officer of Royal Dutch Shell plc hosted a live analyst video webcast of the 2016 fourth quarter and full year results on Thursday February 2, 2017.

Veröffentlicht in: Investorbeziehungen
  • Als Erste(r) kommentieren

  • Gehören Sie zu den Ersten, denen das gefällt!

Royal Dutch Shell plc fourth quarter 2016 results webcast presentation

  1. 1. Royal Dutch Shell February 2, 2017 Royal Dutch Shell plc February 2, 2017 Fourth quarter 2016 results Re-shaping Shell, to create a world-class investment case #makethefuture
  2. 2. Royal Dutch Shell February 2, 2017 Ben van Beurden Chief Executive Officer Royal Dutch Shell
  3. 3. Royal Dutch Shell February 2, 2017 3 Definitions & cautionary note Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves. Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources are consistent with the Society of Petroleum Engineers (SPE) 2P + 2C definitions. Discovered and prospective resources: Our use of the term “discovered and prospective resources” are consistent with SPE 2P + 2C + 2U definitions. Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing impact. Shales: Our use of the term ‘shales’ refers to tight, shale and coal bed methane oil and gas acreage. Underlying operating cost is defined as operating cost less identified items. A reconciliation can be found in the quarterly results announcement. The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate legal entities. In this release “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 release 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 has 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 held by Shell in a venture, partnership or company, after exclusion of all third- party interest. This release 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’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘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 release, 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 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. There can be no assurance that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this release 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, 2015 (available at www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this release and should be considered by the reader. Each forward-looking statement speaks only as of the date of this release, February 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 release. With respect to operating costs synergies indicated, such savings and efficiencies in procurement spend include economies of scale, specification standardisation and operating efficiencies across operating, capital and raw material cost areas. We may have used certain terms, such as resources, in this release that 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.
  4. 4. Royal Dutch Shell February 2, 2017 4 Key messages  Cash engines  today’s free cash flow  Growth priorities  deep water and chemicals  Future opportunities  shales and new energies  Create a world class investment case  Grow free cash flow per share, higher ROCE  More resilient and more focused company RE-SHAPING SHELL MANAGING THE DOWN-CYCLE PORTFOLIO PRIORITIES  Pulling levers to manage financial framework  Re-set our costs  Reduce debt BG integration completed; synergy delivery continues
  5. 5. Royal Dutch Shell February 2, 2017 5 Transition 2016 + delivery 2017+ Earnings on CCS basis, excluding identified items Business mix underpins results  Downstream + Integrated Gas offsetting Upstream  Underlying CCS earnings 2016 $7 billion  CFFO 2016 $21 billion  Expected Q117 dividend $0.47 per share, unchanged Continued drive to re-shape Shell  Consolidated BG into Shell  2017 capital investment  Progressing 4 levers: cost reductions, capital spend, divestments and project start-ups Leader: value + influence Reducing our carbon intensity Shared value with society World-class investment case  FCF/share + ROCE growth  Conservative financial management
  6. 6. Royal Dutch Shell February 2, 2017 Strong free cash flow and returns Re-shape Shell Driving strategy in multiple time horizons CONVENTIONAL OIL + GAS CHEMICALS OIL PRODUCTS DEEP WATERINTEGRATED GAS OIL SANDS MINING SHALES NEW ENERGIES Cash engines: today Growth priorities: 2016+ Future opportunities: 2020+ Competitive + resilient Funds dividends + balance sheet FCF + ROACE pathway Affordable growth in advantaged positions Material value + upside Managed exposure Path to profitability Cash engines 2020+ Relentless portfolio high-grading 6
  7. 7. Royal Dutch Shell February 2, 2017 7 Re-shape Shell Divestments progress: Gaining momentum Showa Shell SADAF JV exit UK North Sea assets Divestments Reduce capital investment Reduce operating costs Deliver new projects  Sale of ~31% of Showa Shell Sekiyu KK to Idemitsu  ~$1.4 billion  Lubricants and fuel brand licensing agreements  Completed in 2016  Sale of 50% petrochemicals SADAF joint venture to SABIC  ~$0.8 billion  Completion expected in 2017 Showa Shell Sekiyu K.K. Kawasaki Refinery, Japan  Sale of package of UK North Sea assets to Chrysaor  $3 billion + up to ~$0.8 billion  115 kboe/d production in 2016  Completion expected in 2017 SADAF Petrochemicals facility, Kingdom of Saudi Arabia  $30 billion 2016-18  Completed: ~$5 billion  Announced: ~$5 billion  Advanced progress: >$5 billion
  8. 8. Royal Dutch Shell February 2, 2017 8 Re-shape Shell Capital discipline, supporting growth Excludes BG acquisition in 2016 Historical BG Capital investment is based on BG’s published 2014 Annual Report Future opportunities Growth priorities Cash engines $ billion Capital investment -$20 billion Shell BG 30 25 $ billion 2016 2017E 2018 Oil products 4 ~4 3-4 Conventional oil + gas 5 ~4 5-6 Integrated gas 4 ~5 4-5 Oil sands mining <1 <1 <1 Deep water 9 ~7 6-7 Chemicals 2 ~3 3-4 Shales 2 ~2 2-3 New energies <1 <1 <1 Total 27 ~25 25-30  More predictable development flow  Economic resilience of projects Divestments Reduce capital investment Reduce operating costs Deliver new projects
  9. 9. Royal Dutch Shell February 2, 2017 Shell Prince Rupert 9 Re-shape Shell 2016: Moving quickly on office footprint # staff x 1,000 FTE movements BG Net reductions Shell Calgary BG x Office closure Kitimat Vancouver x x Houstonx Mexico x x Trinidad & Tobago Bolivia Uruguay x Tanzania Kenya Equatorial Guinea x Cairo x Tunisia Stavangerx x Oslo Astanax New Delhix Mumbai Myanmar x x Bangkok Singapore x Tokyo x Brisbane Perth x Aberdeen x xManchester xReading London Rio de Janeirox  Iconic moves London, Houston  25 closures in ‘16/’17 Divestments Reduce capital investment Reduce operating costs Deliver new projects x Rotterdamx Beijing x x
  10. 10. Royal Dutch Shell February 2, 2017 10 Portfolio priorities Delivering growth now 2016 start-up production: once fully ramped-up  2016 start-ups: >300 kboe/d ; 3.9 mtpa LNG Divestments Reduce capital investment Reduce operating costs Deliver new projects BC-10 Ph3  Shell 50% Gorgon start-up  15.6 mtpa LNG  Shell 25% Kashagan  300 kboe/d  Shell 17% Stones  50 kboe/d  Shell 100% 8th FPSO – ‘Saquarema’  150 kboe/d  Shell 25% 9th FPSO – ‘Caraguatauba’  100 kboe/d  Shell 30% ML South start-up  35 kboe/d  Shell 35% 7th FPSO 1st oil – ‘Maricá’  150 kboe/d  Shell 25%      Start-up    Forcados Yokri  50 kboe/d  Shell 30% Gbaran Ubie ph2  150 kboe/d  Shell 30% Geismar AO4  425 ktpa alpha olephins  Shell 100% Malikai  60 kboe/d  Shell 35% Pernis – Solvent deasphalting  7.2 kbpd  Shell 100% Schiehallion redevelopment  125 kboe/d  Shell 55% Scotford HCU debottleneck  14 kbpd  Shell 100% 10th FPSO – ‘Lula South’  150 kboe/d  Shell 25% 11th FPSO – ‘Lula North’  150 kboe/d  Shell 25%  Q4 2016 Q4 2016  Q4 2016
  11. 11. Royal Dutch Shell February 2, 2017 11 Re-shape Shell Financial performance: On-track 2019-21: 2016 RT $60 scenario, mid-cycle Downstream *FCF + proceeds from sale of interests in entities while retaining control; 2016 excluding BG cash element Relentless portfolio high- grading 2019-21 ~$60 Capital employed ($ bln) Free cash flow* ($ bln p.a) ROACE (%) ~65% 15-20 ~10 ~25% ~5 ~10 ~5% ~0 <5 20-25 20-25 ~5 270-290 20-30 ~10 Capital employed ($ bln end ‘16) Free cash flow* ($ bln p.a) ROACE (%) ~65% 2 5 ~25% -4 1 ~5% -1 -6 -3 3 5 281 8 3 Capital employed ($ bln end ‘15) Free cash flow* ($ bln p.a) ROACE (%) ~65% 8 12 ~20% 0 11 ~5% -4 -12 5 0 7 223 7 8 2016 ~$442013-15 ~$90 Cash engines Growth priorities Future opportunities Organic FCF Organic FCF (excl. w/c) Divestments Total (incl. Corporate, excl. w/c)
  12. 12. Royal Dutch Shell February 2, 2017 Simon Henry Chief Financial Officer Royal Dutch Shell
  13. 13. Royal Dutch Shell February 2, 2017 $ billion Q4 2015 Q4 2016 Upstream (1.0) 0.1 Integrated Gas 1.2 0.9 Downstream (CCS) 1.5 1.3 Corporate & non-controlling interest (0.2) (0.5) CCS net earnings 1.6 1.8 CCS earnings, $ per share 0.25 0.22 Cash flow from operations 5.4 9.2 ROACE (%) 5.2 2.9 Dividends 3.0 3.8 Dividend, $ per share 0.47 0.47 13 Q4 2016 Financial highlights: Strong cash performance Earnings and ROACE on CCS basis, excluding identified items $ billion Earnings Q4 2015 to Q4 2016 Environment Choice
  14. 14. Royal Dutch Shell February 2, 2017 14 Q4 2016 Earnings and cash flow momentum Earnings on CCS basis, excluding identified items $ billion Earnings Cash flow from operations excluding working capital Cash flow from operations excluding working capital - 4 quarters rolling (RHS) $ billion
  15. 15. Royal Dutch Shell February 2, 2017 2016 Reserves performance  2016 RRR 208%  2014-16 RRR 81%  BG Feb’16 ~2.4 billion boe  Reserves life at end 2016 ~9.6 years 15 Preliminary results SEC proved reserves position 1 Reserves attributable to Royal Dutch Shell shareholders Billion boe Reserves performance 2015 2016 (billion boe) 2015 2016 Avg 3-yr Production 1.1 1.4 1.2 SEC proved reserves1 11.7 13.2 12.7 Reserves life ~10.5 ~9.6 ~10.4 RRR -20% 208% 81%
  16. 16. Royal Dutch Shell February 2, 2017 16 Integration with BG BG portfolio is delivering Thousand boe per day Increasing production Thousand boe per day Queensland LNG $ billion Synergies BG Thousand boe per day Brazil pre-salt  Majority of synergies captured  Production delivery  Re-shaping Shell – learning BG LNG Deep waterConventional oil + gas 2.8 4.0 4.5 # 1st LNG Train 1 Dec 2014 T2 start up Nov 2015 Production Number of cargoes delivered in the quarter (RHS) +30% Costs Exploration FPSO Cidade de Caraguatatuba Lapa Field started on the 19th of December. +70% +100% Bid announced
  17. 17. Royal Dutch Shell February 2, 2017 17 Re-shape Shell Integrated Gas from growth priority to cash engine – Global LNG Earnings on CCS basis, excluding identified items Million tonnes per annum LNG volumes Peru LNG QG-4 Atlantic LNG Oman Sakhalin Malaysia Sabine Pass Equatorial Guinea Pluto NWS Brunei QCLNG Gorgon LNG liquefaction volumesLNG sales volumes  IOC leadership position  Global footprint  Integrated Gas is >30% capital employed of Shell  Value from optionality Integrated Gas: earnings + cash flow Nigeria Equity capacity Long-term offtake agreement Spot offtake in 2015-16 FY Deliveries in 2015-16 FY $ billion Earnings Cash flow from operations
  18. 18. Royal Dutch Shell February 2, 2017 18 Improving our Downstream footprint and performance Earnings and ROACE on CCS basis, excluding identified items Portfolio change $ billion Earnings + ROACE 2016:  Showa Shell   Motiva split  Denmark refining  Malaysia refining   PSPC IPO   Denmark marketing   MLP dropdowns (3)  Resilience Attractiveness Backbone / grow:  Chemicals  China  LNG for transport  Premium fuels + lubes  Refinery crude flexibility  others Fix:  Netherlands  Rheinland Manufacturing  Singapore  Motiva JV restructuring  others Exit:  Australia   Denmark marketing   Harburg   Italy   LPG France   Norway   Selected UK retail sites   Tongyi lubricants China   Showa Shell   Malaysia refining   Denmark refining  SADAF petrochemicals JV  others  completed ROACE (RHS)Refining & trading ChemicalsMarketing %
  19. 19. Royal Dutch Shell February 2, 2017 19 Deep water: Growing now Thousand boe per day  2016 delivery good progress to 2020 production growth to ~900 kboe/d  Reducing break-even: new projects less than $45/bbl  Brazil pre-salt well below $40/bbl  Structural improvements in capital efficiency and operating cost reductions Deep water growth Strong deep water capabilities combined with advantaged portfolio 2009 BC-10 2014 Mars B Gumusut- Kakap 2010 Perdido 2005 Bonga 2001 Brutus 1999 Ursa 1997 Ram Powell 1996 Mars 2016 Stones Malikai Brazil pre-salt 1994 Auger Under construction Coulomb Appomattox Kaikias Brazil pre-salt BrazilGulf of Mexico Other
  20. 20. Royal Dutch Shell February 2, 2017 20 Americas shales: Growth to come Discovered + prospective resources shown at year end 2016; consistent with the Society of Petroleum Engineers 2P (Proved + Probable Reserves) , 2C (Contingent Resources) and 2U (Prospective Resources) definitions.  Material discovered + prospective resources >11 billion boe  25% liquids, 75% gas  Selective acceleration of liquids development  Capital investment $2-3 billion per annum  Permian and Fox Creek growth of ~140 kboe/d  Average break-even price ~$40 per barrel Thousand boe per day Production Western Canada Gas Western Canada LRS Appalachia Permian Argentina Haynesville Liquids rich Dry gas  Advantaged positions in Permian and Fox Creek  Improving capital efficiency and reducing unit operating costs Permian Fox Creek Other Fox creek Permian well site
  21. 21. Royal Dutch Shell February 2, 2017 21 Manage down-cycle Cash flow priorities 2016-18  Powerful levers to underpin financial framework Priorities for cash Debt reduction Dividends Buybacks & capital investment 1 2 3 Divestments Reduce capital investment Reduce operating costs Deliver new projects
  22. 22. Royal Dutch Shell February 2, 2017 22 Manage down-cycle Divestments 2016-2018 2016-2018 completed + announced ($ billion) 2016 Completed Announced Upstream 1.5 ~3.0 Integrated Gas 0.4 ~0.9 Downstream/Corporate 2.9 ~1.3 TOTAL 4.7 ~5.2 Divestments Reduce capital investment Reduce operating costs Deliver new projects  $30 billion 2016-18  Completed: ~$5 billion  Announced: ~$5 billion  Advanced progress: >$5 billion
  23. 23. Royal Dutch Shell February 2, 2017 BG $25-30 billion 23 Manage down-cycle Predictable high- quality investment funnel Excludes BG acquisition in 2016 $ billion Capital investment Growth options/explorationBase + short cycle Committed growth projects 58 47 36 27 Divestments Reduce capital investment Reduce operating costs Deliver new projects Shell + BG C.I. on a cash basis ~25  Planning for $25-$30 billion range  2016 $27 billion  2017 around $25 billion  Focus on economic resilience of projects -$20 billion 2017E
  24. 24. Royal Dutch Shell February 2, 2017 24 Manage down-cycle Reduce operating cost: 20% down in 2 years Operating costs excluding identified items $ billion Underlying operating cost  $10 billion reductions delivered  “Lower for ever” mindset + BG synergies  Divestments, growth, FX impacts  2017 less than $40 billion Divestments Reduce capital investment Reduce operating costs Deliver new projects Shell BG -$10 billion < $40 billion 39 2016 identified items
  25. 25. Royal Dutch Shell February 2, 2017 2016 CFFO (RHS) 25 Manage down-cycle Deliver new projects: ~$10 billion by 2018 BG organic growth from 1.1.2016; LNG volume includes offtake; 2016 RT $60 oil price scenario 2018 Thousand boe per day / mtpa Shell projects start-ups 2014+  ~$10 billion CFFO  > 1 million boe/day  Cash operating cost <$15/boe  Tax rate ~35% Divestments Reduce capital investment Reduce operating costs Deliver new projects  Start-up $ billion Gorgon Cardamom Permian Bonga NW Gumusut-Kakap     Malikai  Stones QCLNG  7-9th FPSO Kashagan   / 15 / 10 / 5 Production LNG volume 2018E CFFO (RHS)
  26. 26. Royal Dutch Shell February 2, 2017 26 Capital investment excludes BG acquisition; BG organic growth from 1.1.2016; *2016 RT $60 oil price scenario 2018 Manage down-cycle Pulling levers to manage financial framework $ billion 2015 baseline: Shell + BG 2016 2017-2018 potential Operating costs 46 39 (underlying) Multi-billion p.a. Capital investment 36 27 25-30 Divestments 6 + 5 5 30 over 2016-18 Projects start-up post-2014 (CFFO) n/a >$1 ~10 by 2018* Divestments Reduce capital investment Reduce operating costs Deliver new projects 2016-18 levers  Reducing our cash break- even  Further options available  +/- $10 Brent = ~$5 billion CFFO  Underlying operating costs <$40 billion
  27. 27. Royal Dutch Shell February 2, 2017 Ben van Beurden Chief Executive Officer Royal Dutch Shell
  28. 28. Royal Dutch Shell February 2, 2017 28 Key messages  Cash engines  today’s free cash flow  Growth priorities  deep water and chemicals  Future opportunities  shales and new energies  Create a world class investment case  Grow free cash flow per share, higher ROCE  More resilient and more focused company RE-SHAPING SHELL MANAGING THE DOWN-CYCLE PORTFOLIO PRIORITIES  Pulling levers to manage financial framework  Re-set our costs  Reduce debt BG integration completed; synergy delivery continues
  29. 29. Royal Dutch Shell February 2, 2017 29 Questions & Answers Ben van Beurden Chief Executive Officer Simon Henry Chief Financial Officer Royal Dutch Shell February 2, 2017
  30. 30. Royal Dutch Shell February 2, 2017 Royal Dutch Shell plc February 2, 2017 Fourth quarter 2016 results Re-shaping Shell, to create a world-class investment case “Let’s make the future”
  31. 31. Royal Dutch Shell February 2, 2017 31 Q1 2017 Outlook Q1 – Q1 OUTLOOK: Year-ago baseline reflects Shell’s earnings seasonality  BG fully consolidated, Q116 was 2 months  Integrated gas  Earnings negatively impacted by reduction ~-100 kboe/d  Upstream  Divestment impact: ~-45 kboe/d  Maintenance: ~-40 kboe/d  One additional month of production from BG assets  Downstream  Refinery availability increase  Chemicals availability increase  Divestment impact oil products sales volumes: ~-35 kboe/d 2017 OUTLOOK:  Corporate segment : net charge, excluding the impact of currency exchange rate effects and interest rate movements, of $350 – 450 million in Q1; $1.4 - 1.6 billion 2017  Shell + BG earnings sensitivity:  Brent: $10/bbl Brent +/- ~$5 billion earnings per annum, of which:  Upstream +/- ~$3 billion  Integrated Gas +/- ~$2 billion (4-6 month LNG price lag versus Brent)  Henry Hub: $1/mmbtu +/- ~$250 million earnings per annum
  32. 32. Royal Dutch Shell February 2, 2017 Q4 2016 Prices & margins $/barrel Shell oil & gas realisations $/barrel Industry refining margins $/tonne Industry chemicals margins US ethane Western Europe naphtha NE/SE Asia naphtha US West Coast US Gulf Coast coking Rotterdam complex Singapore Oil Gas (RHS) 32 $/mscf
  33. 33. Royal Dutch Shell February 2, 2017 33 Q4 2016 Upstream results Earnings on CCS basis, excluding identified items $ billion Earnings Q4 2015 to Q4 2016 Environment Choice
  34. 34. Royal Dutch Shell February 2, 2017 34 Q4 2016 Integrated Gas results Earnings on CCS basis, excluding identified items $ billion Earnings Q4 2015 to Q4 2016 Environment Choice 2.0 0 1.0
  35. 35. Royal Dutch Shell February 2, 2017 35 Q4 2016 Downstream results Earnings on CCS basis, excluding identified items $ billion Earnings Q4 2015 to Q4 2016 $ billion Earnings mix Marketing Refining & Trading Chemicals
  36. 36. Royal Dutch Shell February 2, 2017 2.75 3.00 3.50 36 Q4 2016 Oil and gas production Million boe per day Upstream + Integrated Gas – oil & gas Million tonnes LNG liquefaction volumes Choice: +31% 3.25 3.75 4.00
  37. 37. Royal Dutch Shell February 2, 2017 37 2016 Financial highlights Earnings on CCS basis, excluding identified items $ billion Earnings 2015 to 2016 $ billion Earnings Q4 2015 to Q4 2016
  38. 38. Royal Dutch Shell February 2, 2017 Financial dashboard Competitive financial data as published. Free cash flow: cash flow from operations less cash used in investing activities. $/ADR for European companies. ROACE underlying: European companies: CCS basis excluding identified items. US companies: reported earnings excluding special non-operating items. Capital employed on gross debt basis. % Gearing % ROACE $/share Free cash flow per share % Total shareholder return Shell Peer group 3-years: 2014 - 2016 % 2016 38
  39. 39. Royal Dutch Shell February 2, 2017 $ billion Q4 2016 2016 Beginning cash 20.0 31.8 Earnings 1.6 4.8 Depreciation 6.6 25.0 Working capital / other 1.0 (9.2) Divestments 3.0 4.7 Capex / other investment (6.1) (23.2) BG acquisition cash - (11.4) Shareholder distributions (2.4) (9.9) Debt / other financing 4.5 6.5 Ending cash 19.1 19.1 39 Q4 2016 Sources and uses of cash $ billion 2016 Full year Dividend Capex / other investment Debt / other financing Divestments BG acquisition – cash element Cash flow from operations Priorities for cash:  Debt reduction  Dividends  Buybacks + capital investment
  40. 40. Royal Dutch Shell February 2, 2017 Projects under construction 40 Start up Project Country Shell share (direct & indirect) % Peak Production 100% kboe/d LNG 100% Capacity mtpa Products Legend Theme Shell Operated 2017-18 Baronia / Tukau Timur Malaysia 40 65  Conventional oil + gas Berbigão** Brazil 25 150  Deep water Clair Ph2 United Kingdom 28 100  Conventional oil + gas Coulomb United States 100 20  Deep water  Fox Creek* Canada various 26  Shales  Forcados Yokri Interagted Project (FYIP) Nigeria 30 50  Conventional oil + gas  Gbaran-Ubie Ph2 Nigeria 30 150  Conventional oil + gas  Geismar AO4 United States 100 425 kta AO  Chemicals  Gorgon T3 Australia 25 5.2  Integrated Gas Lula Extreme South** Brazil 25 150  Deep water Lula North** Brazil 25 150  Deep water Lula South** Brazil 25 150  Deep water Permian* United States various 54  Shales  Prelude FLNG Australia 68 131 3.6 1.7 mtpa NGLs  Integrated Gas  Pernis solvent deasphalting Netherlands 100 7.2 kbpd  Oil Products  Schiehallion Redevelopment United Kingdom 55 125  Conventional oil + gas Tempa Rossa Italy 25 50  Conventional oil + gas 2019+ Appomattox United States 79 175  Deep water  Atapu 1** Brazil 25 150  Deep water Atapu 2** Brazil 25 150  Deep water Kaikias Ph1 United States 80 40  Deep water  Nanhai China Chemicals China 50 1200 kta C2  Chemicals Pennsylvania cracker United States 100 1500 kta C2  Chemicals  Rabab Harweel Integrated Project Oman 34 40  Conventional oil + gas Southern Swamp AG Nigeria 30 30  Conventional oil + gas  * Permian and Fox Creek production represents Shell entitlement share of production and is the production growth expected between 2016 peak to 2018 peak production ** The Lula, Berbigão, Sururu, Atapu accumulations are subject to unitisation agreements; production shown is FPSO oil capacity as per operator
  41. 41. Royal Dutch Shell February 2, 2017 Pre-FID options * Production shown is FPSO oil capacity as per operator 41 Phase Project Country Shell share (direct & indirect) % Peak Production 100% kboe/d LNG 100% Capacity mtpa Products Legend Theme Shell Operated Select Bonga Main Integrated Redevelopment Nigeria 55 112  Deep water  Libra pilot FPSO* Brazil 20 180  Deep water LNG Canada T3-4 Canada 50 14  Integrated Gas Define Bonga South West Nigeria 43 154  Deep water  Bokor Malaysia 40 12  Conventional oil + gas Changbei II China 50 57  Integrated Gas  Lake Charles United States 100 16  Integrated Gas LNG Canada T1-2 Canada 50 14  Integrated Gas Penguins Redevelopment United Kingdom 50 40  Conventional oil + gas  Sakhalin T3 Russia 28 69 ~5  Integrated Gas Val d'Agri Ph2 Italy 39 60  Conventional oil + gas Vito United States 63 100  Deep water 
  42. 42. Royal Dutch Shell February 2, 2017

×