Fourth quarter and full year results 2010 - February 3, 2011

ROYAL DUTCH SHELL PLC
FOURTH QUARTER AND FULL YEAR 2010
RESULTS

THE HAGUE
FEBRUARY 3rd, 2011

1 Copyright of Royal Dutch Shell plc 03/02/2011

RESULTS

PETER VOSER
CHIEF EXECUTIVE OFFICER


DEFINITIONS AND CAUTIONARY NOTE

Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves for all 2009 data, and includes both SEC proved oil and gas reserves and SEC proven mining
reserves for 2007 and 2008 data.
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 or SEC proven mining reserves. Resources are
consistent with the Society of Petroleum Engineers 2P and 2C definitions.
Organic: Our use of the term Organic includes SEC proved oil and gas reserves and SEC proven mining reserves (for 2007 and 2008) excluding changes resulting from acquisitions, divestments and
year-end pricing impact.

To facilitate a better understanding of underlying business performance, the financial results are also presented on an estimated current cost of supplies (CCS) basis as applied for the Oil Products and
Chemicals segment earnings. Earnings on an estimated current cost of supplies basis provides useful information concerning the effect of changes in the cost of supplies on Royal Dutch Shell’s results
of operations and is a measure to manage the performance of the Oil Products and Chemicals segments but is not a measure of financial performance under IFRS.

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 h significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell h joint control
ll fl h h h h ll has f fl b l f d d d h h h ll has l
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 24% 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 i l d among other things, statements concerning the potential exposure of R
F d l ki include, h hi i h i l f Royal D h Sh ll to market risks and statements expressing management’s expectations,
l Dutch Shell k ik d i ’ i
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 the Shell’s products; (c) currency fluctuations; (d) drilling and production
results; (e) reserve 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, i l di th risks of expropriation and renegotiation of the terms of contracts with governmental entities, d l
d i liti l i k including the i k f i ti d ti ti f th t f t t ith t l titi delays or advancements i th approval of projects and d l
d t in the l f j t d 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 20-F for the year ended 31 December, 2009 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking
statement speaks only as of the date of this presentation, 3 February, 2011. 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.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual
companies SEC
production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation that SEC's guidelines
strictly prohibit us from including in 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.
You can also obtain these forms from the SEC by calling 1-800-SEC-0330.


PERFORMANCE

STRATEGY PRIORITIES 2010 RESULTS

CCS EARNINGS $ BILLION
20

PERFORMANCE FOCUS

15

NEW WAVE OF PRODUCTION 10
GROWTH

5

MATURING NEXT GENERATION OF
PROJECT OPTIONS 0

EARNINGS EXCLUDING IDENTIFIED ITEMS

Competitive performance – Profitable growth – Sharper delivery


PERFORMANCE FOCUS

PERFORMANCE FOCUS: NEW WAVE OF PRODUCTION
GROWTH

COSTS MATURING NEXT GENERATION OF
PROJECT OPTIONS

UNDERLYING COSTS

$ BILLION • 2010 delivery
FX
PENSIONS • Corporate reorganization
45 PROVISIONS • U d l i costs reduction of $2 0 bl
Underlying d i f $2.0 bln
• -$4 bln (10%) since 2008
40 COST SAVINGS

35

30 • Continuous improvement
2009 2010
EXAMPLE: STANDARDIZATION
• Offshoring
• Global contracting & procurement
OFFSHORING TO LOW COST SHARED SERVICE CENTERS
• Simplification & standardization
‘000s STAFF
10
8
6
4
2
0
2006 2007 2008 2009 2010


PERFORMANCE FOCUS

CONTINUOUS IMPROVEMENT: NEW WAVE OF PRODUCTION
GROWTH

CAPITAL EFFICIENCY MATURING NEXT GENERATION OF
PROJECT OPTIONS

ASSET SALES PROGRESS 2010 & 2011 YTD ~$30 BILLION DIVESTMENTS – 5 YEARS

$ BILLION CUMULATIVE

Finland & Sweden 30
CORPORATE
Statfjord UPSTREAM
Harburg DOWNSTREAM
Heide Refinery
US retail
South Texas
Syria
Greece
GOM assets 20
El Salvador
Panama & Costa Rica
Ng
Nigeria
21 countries
Africa 10 % Woodside
Chile
10
New Zealand

Divestment Deal Complete 0
06 07 08 09 10


PERFORMANCE FOCUS

DELIVERING NEW GROWTH NEW WAVE OF PRODUCTION
GROWTH

MATURING NEXT GENERATION OF
PROJECT OPTIONS

6 NEW START-UPS IN 2010 ON TRACK FOR STRATEGIC TARGETS

On track for strategic targets
• Production growth
• +11% oil & gas production 2009-12
11% il d i 2009 12
• 3.5 mln boe/d 2012; ~3.7 mln boe/d 2014
• Cashflow growth
Tight gas, North America Perdido, USA • + 50-80% 2009 – 12*

START-UP PERFORMANCE
Example: Gbaran Ubie (100%) Nigeria
(100%),

kboe/d
Singapore Chemicals AOSP Jackpine mine, Canada ACTUAL
100 PLAN

50
GJOA PLACEHOLDER

0
MAY JUN JUL AUG SEP OCT NOV DEC
Gbaran Ubie, Nigeria Gjoa, Norway
2010

*$60-$80
OIL PRICE SCENARIO, 2012 ASSUMES NORMALIZED DOWNSTREAM AND
NATURAL GAS ENVIRONMENT

PERFORMANCE FOCUS

QATAR: PROJECTS ON TRACK NEW WAVE OF PRODUCTION
GROWTH

MAJOR START-UPS 2011 MATURING NEXT GENERATION OF
PROJECT OPTIONS

PEARL GTL: MAJOR CONSTRUCTION COMPLETE

Air separation unit •Commissioning underway; ~12 months start-up
•Sequential start-up of two trains
•2012 f ll GTL capacity achieved
full it hi d
•1.6 bcf/d wet gas
•120 kboe/d NGL/ethane
Sales products
•140 kboe/d GTL products
•Shell 100% i partnership with Q
Sh ll in hi i h Qatar P
Petroleum
l

QATARGAS 4: STARTING UP
LNG train
•First gas into plant – Jan 2011
•LNG ramp-up H1 2011
•7-8 mtpa + 70 kboe/d condensate
•Shell 30%
Shell

First steam from boilers


PERFORMANCE FOCUS

EXPLORATION TO PRODUCTION NEW WAVE OF PRODUCTION
GROWTH

2010 PERFORMANCE MATURING NEXT GENERATION OF
PROJECT OPTIONS

DISCOVERY APPRAISAL FID

2010 FIDs
• MARS B, Gulf of Mexico
•~100,000 boe/d TLP capacity (Shell 72%)
•BC-10 Phase 2, Brazil
•~30,000 boe/d (Shell 50%)

GULF OF MEXICO
• 3 discoveries & 1 appraisal success
•~450 mln boe resources (Shell)
• Appomattox (Shell 80%), Cardamom Deep (Shell
100%), South Deimos (Shell 72%)
• Vito appraisal (Shell 55%)

BRAZIL
• BC-10 Massa (Shell 50%)
• Oil discovery, Campos Basin
• Potential for BC-10 Phase 3
• Gato do Mato, BMS-54 (Shell 80%)
, ( )
• Oil discovery, Santos Basin
• New wells planned to assess commerciality

AUSTRALIA
• 2 offshore gas discoveries
• Acme (Shell 33%), Brederode (Shell 50%)
• Clio-3 appraisal ( h ll 33%)
l l (Shell )
BC-10 FPSO
Mars-B TLP MARS-B TLP


PERFORMANCE FOCUS

MATURING NEW PROJECT OPTIONS NEW WAVE OF PRODUCTION
GROWTH

BUSINESS DEVELOPMENT: 2010 PERFORMANCE MATURING NEXT GENERATION OF
PROJECT OPTIONS

2010 PROGRESS

CHINA TIGHT GAS
• JinQiu PSC: 4,000 km2 tight gas
• Fushun JAA: 4,000 km2 shale gas
• North Shiloh CBM, Ordos basin
• Drilling in all 3 licenses

Sugar cane harvesting, Brazil

EAST RESOURCES ARROW ENERGY
• Marcellus shale • PetroChina and Shell
• 70 wells drilled since acquisition • 7-8 mtpa CBM-LNG potential
Drill pad in JinQiu, China
SHELL/COSAN JV IRAQ MAJNOON OIL FIELD
• 50/50, ~4500 Retail Stations • DPSC signed Shell 45%
signed,
• Biofuels in Brazil • Targeting 175 kboe/d ~ 2012
• Shell 2nd generation biofuels tech • Current production: 65 kboe/d
•JV start-up planned April 1st

EAGLE FORD GREENLAND OFFSHORE
• Condensate rich shale • Block “Anu”, Shell 41%
• 6 wells drilled since acquisition • Block “Napu”, Shell 46%
Napu
• 20,000 km2, Shell operated

NEW EXPLORATION/RESOURCES ENTRY


OPERATIONAL EXCELLENCE

OIL & GAS PRODUCTION RELIABILITY LNG RELIABILITY

100% 100%

90% 90%

80% 80%

70% 70%
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010

DOWNSTREAM AVAILABILITY SAFETY PERFORMANCE
REFINING - % OF EQUIVALENT DISTILLATION CAPACITY INJURIES - TRCF PER MILLION WORKING HOURS
CHEMICALS - % OF MAXIMUM CAPACITY
4
96%
CHEMICALS
3
94%

2
92%
REFINING
90% 1
2006 2007 2008 2009 2010 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

EMPLOYEES AND CONTRACTORS PER MILLION WORKING HOURS; SHELL OPERATED FACILITIES


RESULTS

SIMON HENRY
CHIEF FINANCIAL OFFICER


PRICES AND MARGINS

SHELL OIL & GAS REALIZATIONS INDUSTRY REFINING MARGINS INDUSTRY CHEMICALS MARGINS

$/BARREL $/MSCF $/BARREL $/TONNE

7 12 600
80
10 500

8
6 400
70
6
300
4

60 5 200
2

0 100

50 4 -2
2 0

US ETHANE
US WEST COAST ROTTERDAM
O
OIL G S (RHS)
GAS ( S) WESTERN EUROPE NAPHTHA
US GULF COAST SINGAPORE NE/SE ASIA NAPHTHA

•Q4 2010 CHEMICAL MARGINS: BASED ON AVAILABLE
PRICES/MARGINS AT THE END OF THE QUARTER

Q4 2010 FINANCIAL HIGHLIGHTS

CCS EARNINGS ($ BILLION) CCS EARNINGS Q4 2009 TO Q4 2010

$ BILLION

5
Q4 10 Q4 09

UPSTREAM 3.4 2.8

DOWNSTREAM (CCS) 0.5 (0.4)
4
BUSINESS SEGMENTS TOTAL 3.9 2.4

CORPORATE & MINORITIES 0.2 0.4

CCS NET EARNINGS 4.1 2.8 3
CCS EARNINGS, $ PER SHARE 0.67 0.45

CASH FROM OPERATIONS 5.5 5.7 2

DIVIDENDS 2.6 2.6
1
DIVIDEND, $ PER SHARE 0.42 0.42

0

EARNINGS CCS BASIS, EARNINGS AND EPS EXCLUDING IDENTIFIED ITEMS


UPSTREAM PERFORMANCE

EARNINGS OIL & GAS PRODUCTION
$ BILLION MILLION BOE/D

5 3.4

4

3.2
3
CONTROLLABLE

2
3.0

1

0 2.8

Q409 Q110 Q210 Q310 Q410
OTHER UPSTREAM INTEGRATED GAS

EXCLUDING IDENTIFIED ITEMS


DOWNSTREAM PERFORMANCE

CCS EARNINGS AVAILABILITY AND SALES VOLUMES
$ BILLION % AVAILABILITY VOLUME

100 7
1.5
15

1 95 6

0.5
90 5

0

85 4
-0.5

-1
1 80 3
Q409 Q110 Q210 Q310 Q410 Q409 Q110 Q210 Q310 Q410

OIL PRODUCTS REFINERY AVAILABILITY OIL PRODUCT SALES (MLN BBLS/D)
CHEMICALS CHEMICALS AVAILABILITY CHEMICALS SALES (MLN TONNES)

EXCLUDING IDENTIFIED ITEMS


CASH PERFORMANCE 12 MONTHS

BUSINESSES GROUP

$ BILLION $ BILLION

35 50
UPSTREAM DOWNSTREAM SOURCES USES

SOURCES
30
USES 40
25

30
20

15
SOURCES
20

10
USES
10
5

0 0

CASH FLOW FROM OPERATIONS EXCL. NET ACQUISITIONS
MOVEMENTS IN WORKING CAPITAL CAPEX (EXCL. ACQUISITIONS) + EQUITY ACC. INVESTMENTS
ASSET SALES PAY-OUT


INVESTMENT AND BALANCE SHEET

BALANCE SHEET
GEARING % CAPITAL EMPLOYED $ BILLION RETURN %

30% 200 40%
Gea g a ge
Gearing range
150
20%
100 20%
10%
50

0% 0 0%
Q405 Q406 Q407 Q408 Q409 Q410 2005 2006 2007 2008 2009 2010
OTHER ROACE
CAPITAL IN SERVICE RETURN ON CAPITAL IN SERVICE
CAPITAL INVESTMENT
CAPITAL INVESTMENT $ BILLION

2009 2010 2010 2011E
$ Bln TARGET
30
MIDDLE EAST
Organic investment 31 ~28 24 28 AFRICA, CIS

Acquisitions
q 1 ~7 7 1.61 20 ASIA-PACIFIC U S
UPSTREAM
M
EUROPE
Disposals (3) (>2) (7) Up to 5
AMERICAS
10

Net Capital Investment 28 ~33 24 25-27 DOWNSTREAM
0
2010 2011E
1 COSAN (BRAZIL DOWNSTREAM & BIOFUELS JV)


RESULTS

PETER VOSER
CHIEF EXECUTIVE OFFICER


SUMMARY

STRATEGY PRIORITIES 2010 DELIVERY

•2010 CCS earnings $18 bln (EPS +56%)
g $ ( )
PERFORMANCE FOCUS •Oil & gas volumes 3.3 mln boe/d (+ 5%)
•$2 bln underlying cost savings
•$7 bln asset sales

•6 new start-ups 2010
NEW WAVE OF PRODUCTION
GROWTH •Qatargas 4 starting up; Pearl GTL on track
•Launched 2 new deep water projects
p p j

•$7 bln acquisitions
MATURING NEXT GENERATION OF •New resource plays: Iraq oil, unconventional gas
p y q , g
PROJECT OPTIONS •Exploration success; 8 new discoveries
•Brazil retail & biofuels joint venture

Competitive performance – Profitable growth – Sharper delivery
EARNINGS CCS BASIS, EARNINGS AND EPS EXCLUDING IDENTIFIED ITEMS


RESULTS

Q&A


RESULTS

THE HAGUE
FEBRUARY 3rd, 2011


Fourth quarter and full year results 2010 - February 3, 2011

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Fourth quarter and full year results 2010 - February 3, 2011

Similaire à Fourth quarter and full year results 2010 - February 3, 2011 (20)

Plus de Shell plc

Plus de Shell plc (20)

Dernier

Dernier (20)

Fourth quarter and full year results 2010 - February 3, 2011