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2010 Ir Factsheet English

Royal Dutch Shell outlines their business strategy which focuses on reinforcing their position as an oil and gas industry leader through capital investment in upstream projects to explore for new reserves and develop major projects using their technical expertise, maintaining cash generation in downstream refining and marketing assets, and committing to technology and innovation to help meet growing global energy demand responsibly. Their outlook layers near-term performance focus, medium-term growth delivery, and maturing next generation project options to define their strategic development.

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0% found this document useful (0 votes)
151 views8 pages

2010 Ir Factsheet English

Royal Dutch Shell outlines their business strategy which focuses on reinforcing their position as an oil and gas industry leader through capital investment in upstream projects to explore for new reserves and develop major projects using their technical expertise, maintaining cash generation in downstream refining and marketing assets, and committing to technology and innovation to help meet growing global energy demand responsibly. Their outlook layers near-term performance focus, medium-term growth delivery, and maturing next generation project options to define their strategic development.

Uploaded by

seifkabil4141
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ROYAL DUTCH SHELL plc

2010 INVESTOR FACTSHEET


OUR BUSINESS

Upstream International manages the upstream These activities are organised into globally managed
business outside the Americas. It searches for and recovers classes of business, including chemicals, some regionally
crude oil and natural gas, liquefies and transports gas and and globally managed activities and supporting activities.
operates the upstream and midstream infrastructure Manufacturing and supply includes refining, supply and
necessary to deliver oil and gas to market. Upstream shipping of crude oil. Marketing sells a range of products
International also manages the global LNG business and including fuels, lubricants, bitumen and liquefied petroleum
the wind business in Europe. The activities are organised gas (LPG) for home, transport and industrial use. Chemicals
within geographical units, some business-wide managed produces and markets petrochemicals for industrial
activities and supporting activities. customers, including the raw materials for plastics, coatings
and detergents used in the manufacture of textiles, medical
Upstream Americas manages the upstream business in supplies and computers. Downstream also trades Shell’s
North and South America. It searches for and recovers flow of hydrocarbons and other energy related products,
crude oil and natural gas, liquefies and transports gas supplies the Downstream businesses, markets gas and
and operates the upstream and midstream infrastructure power and provides shipping services. Downstream also
necessary to deliver oil and gas to market. Upstream oversees Shell’s interests in alternative energy (excluding
Americas also extracts bitumen from oil sands that is wind) and CO2 management.
converted into synthetic crude oil. Additionally, it manages
the US based wind business. It comprises operations Projects & Technology manages the delivery of Shell’s
organised into business-wide managed activities and major projects and drives the research and innovation to
supporting activities. create technology solutions. It provides technical services
and technology capability covering both Upstream and
Downstream manages Shell’s manufacturing, distribution Downstream activities. It is also responsible for providing
and marketing activities for oil products and chemicals. functional leadership across Shell in the areas of safety
and environment and contracting and procurement.

A C E
D

B
J
M
K

F
H

M
L

G N chemical
I products
used for
n Plastics
n Coatings
n Detergents
refined oil
products
UPSTREAM DOWNSTREAM
gas and n (Bio) Fuels
n Exploring for oil and gas A n Refining oil into fuels and lubricants J
n Lubricants
n Developing fields B n Producing petrochemicals K electricity
n Producing oil and gas C n Developing biofuels L
n Bitumen
n Industrial use
n Mining oil sands D n Trading M n Liquefied
n Extracting bitumen E n Retail sales N n Domestic use petroleum gas
n Liquefying gas by cooling (LNG) F n Managing CO2 emissions

n Regasifying LNG G n Supply and distribution

n Converting gas to liquid products n Business-to-business sales

(GTL) H
n Generating wind energy I

2 Royal Dutch Shell plc


Pearl Gas to liquid plant in Qatar

2010 STRATEGY UPDATE

STRATEGY Our commitment to technology and innovation continues to


be at the core of our strategy. As energy projects become
Our strategy seeks to reinforce our position as a leader in more complex and more technically demanding, we
the oil and gas industry in order to generate competitive believe our technical expertise will be a deciding factor in
shareholder returns while helping to meet global energy the growth of our businesses. Our key strengths include the
demand in a responsible way. Intense competition will development and application of technology, the financial
remain for access to resources by our Upstream businesses and project-management skills that allow us to deliver large
and new markets by our Downstream businesses. oil and gas projects, and the management of integrated
We believe our technology, project-delivery capability and value chains. We leverage our diverse and global business
operational excellence will remain key differentiators for our portfolio and customer-focused businesses built around the
businesses. In Upstream, we focus on exploration for new strength of the Shell brand.
oil and gas reserves and developing major projects where
our technology and know-how adds value to the resource
holders. In our Downstream businesses, our emphasis OUTLOOK
remains on sustained cash generation from our existing
assets and selective investments in growth markets. We will We have defined three distinct layers for Shell’s strategy
continue to focus on capital and cost discipline. We expect development: near-term performance focus, medium-term
around 80% of our capital investment in 2010 to be in our growth delivery and maturing next generation project
Upstream projects. In Downstream, we aim to maintain options.
relatively steady capital employed.

Meeting the growing demand for energy worldwide in Performance focus


ways that minimise environmental and social impact is a
major challenge for the global energy industry. We are We will work on continuous improvements in operational
committed to improving energy efficiency in our own excellence, with an emphasis on safety, asset performance
operations, supporting customers in managing their energy and operating costs. We have firm plans in place for $1
demands and continuing to research and develop billion of cost savings in 2010, and staff reduction of some
technologies that increase efficiency and reduce emissions 2,000 positions by the end of 2011. We expect asset
in oil and gas production. sales of up to $3 billion per year as Shell exits from
non-core positions across the company.

Royal Dutch Shell plc 3


There are new initiatives in hand that are expected to Downstream, Shell is adding new chemicals capacity in
improve the status of Shell’s industry-leading Downstream Singapore and refining capacity in the USA, and is making
by focusing on the most profitable positions and growth selective growth investments in marketing. Oil and gas
potential. Shell has plans to exit from 15% of its world-wide production is expected to average 3.5 million boe/d in
refining capacity and 35% of the company’s current retail 2012, compared with 3.15 million boe/d in 2009 – an
markets. We are also taking steps to further improve our increase of 11%.
chemicals assets quality.

Maturing next generation project options


Growth delivery
Shell has built up a substantial portfolio of options for its
Shell has some 11 billion boe of new oil and gas next wave of growth, with the development of over 8
resources under development, and it has selective billion boe of resources in the design or concept-selection
downstream growth opportunities. Net capital investment is stage. This portfolio has been designed to capture oil-price
expected to be $25-$27 billion per year for 2011-14, upside and minimize the company’s exposure to cost
with up to $3 billion per year of asset sales and $25-$30 inflation and political risk. Key elements of this portfolio
billion per year of organic investment. Annual spending will include deep water Gulf of Mexico, North American tight
be driven by the timing of investment decisions and the gas and Australia LNG. Exploration, which delivered
near-term macro outlook as Shell invests for long-term 2.4 billion boe of new resources in 2009, underpins the
growth. Cash flow from operations excluding net working strategy to access new resources. Shell is working to
capital movements was $24 billion in 2009. Shell expects mature these project options, with an emphasis on financial
cash flow to grow by around 50% from 2009-2012 return. The portfolio has the potential to deliver growth to
assuming a $60/b oil price and a more normal around 2020.
environment for natural gas prices and downstream
margins. In an $80/b world, 2012 cash flow should be
at least 80% higher than 2009 levels.

Sakhalin ii: 1st lng delivery from russia

4 Royal Dutch Shell plc


INVESTMENT HIGHLIGHTS

EARNINGS (*) CAPITAL EMPLOYED

$ Billion Kboe/d $ Billion $ Billi


200
35 4,000
80
30
150
25 60
3,000
20
100
15
40
10
2,000 50
5
20
0

-5 0
2005 2006 1,000
2007 2008 2009 2005 2012 0
2009 2010 2012 2014 UPSTREAM
UPSTREAM CORPORATE
DOWNSTREAM OIL & GAS PRODUCTION
DIVESTMENTS/OTHERS DOWNSTREAM
PRODUCTION FORECAST AT $70/b

(*)CURRENT COST OF SUPPLY EARNINGS

PRODUCTION GROWTH CUMULATIVE BUYBACKS AND DIVIDENDS

Kboe/d $ Billion $ Billion $ Billion $ Billion


200 200
4,000 80 80

150 150
60 60
3,000
100 100
40 40

2,000 50 50
20 20

0 0
1,000 2005 2012 2005 0 2012 0
2012 2014 2009 2010 UPSTREAM
2012 2014 2005 2006 2007 2008 2009
UPSTREAM 2005 2006
CTION DOWNSTREAM
OIL & GAS PRODUCTION DOWNSTREAM BUYBACK BUYBACK
ECAST AT $70/b PRODUCTION FORECAST AT $70/b
DIVIDENDS DIVIDENDS

SHARE PERFORMANCE
Royal Dutch Petroleum Company, RDSA
Royal Dutch Petroleum Company, RDSA & AEX Shell Transport & Trading, RDSB & FTSE
ADR & Dow Jones Industrial Average

Index (End 2004 = 100)
Index (End 2004 = 100)
Index (End 2004 = 100) Index (End 2004 = 100)
Index (End 2004 = 100)
Index (End 2004 = 100)
Index (End 2004 = 100) Index (End 2004 = 100)
Index (End 2004 = 100)

160 160 160

160 160 160 160 160 160


140 140 140

140 140 140 140 140 140


120 120 120
120 120 120 120 120 120
100 100 100
100 100 100 100 100 100

80 80 80
80 80 80 80 80 80

60 60 60 60 60 60 60 60 60
2005 2006 2005 2008
2007 2005
2006 2009
2007 2006 2007
2008 2005 2008
2009 2006 2009
2005
2007 2006
2008 2005
2007
2009 2006
2008 2007
2005 2008
2009 2006 2009 2005
2007 2006
2008 2005
2007
2009 2006
2008 2007
2009 2008 2009

Royaland
Royal Dutch Petroleum company Dutch Petroleum
RDSA Royal
AMSTERDAM Dutchand
company Petroleum company
RDSAShell Tradingand
AMSTERDAM RDSA AMSTERDAM
& Transport Shell
and Trading
RDSB Shelland
& Transport
LONDON Trading
RDSB&LONDON
Transport andRoyal
RDSBDutch
LONDON Royaland
Petroleum company Dutch Petroleum
RDSA Royal Dutchand
company
ADR NEW YORK Petroleum company
RDSA ADR NEWand RDSA ADR NEW YORK
YORK

AEX AEX AEX FTSE 100 FTSE 100 FTSE 100 DJ Industrial average DJ Industrial average DJ Industrial average

Royal Dutch Shell plc 5


Downstream transportation - Australia

Shell employee at Retail site QatarGas-4 under construction

Courtesy of Qatargas

6 Royal Dutch Shell plc


SHARE AND CONTACT INFORMATION

CLASS A ORDINARY SHARES CLASS B ORDINARY SHARES

Ticker-symbol London RDSA RDSB


Ticker-symbol Amsterdam RDSA RDSB
Ticker-symbol New York (ADR ) (*)
RDS.A RDS.B
ISIN Code GB00B03MLX29 GB00B03MM408
CUSIP G7690A100 G7690A118
SEDOL-Number London B03MLX2 B03MM40
SEDOL-Number Euronext B09CBL4 B09CBN6
Weighting on FTSE as at 31/12/09 4.79% 3.53%
Weighting on AEX as at 31/12/09 12.21% not included

* One ADR is equal to two underlying ordinary shares

REGISTERED OFFICE RETAIL SHAREHOLDERS INVESTOR RELATIONS


Royal Dutch Shell plc Enquiries from retail shareholders: Enquiries from institutional shareholders:
Shell Centre Shareholder Relations Investor Relations
London SE1 7NA Royal Dutch Shell plc Royal Dutch Shell plc
United Kingdom Carel van Bylandtlaan 30 PO Box 162
Registered in England and Wales, 2596 HR The Hague 2501 AN The Hague
Company number 4366849 The Netherlands The Netherlands
Registered with the Dutch Trade Register Tel: +31 (0)70 377 1365 Tel: +31 (0)70 377 4540
under number 34179503 +31 (0)70 377 4088 +44 (0)20 7934 3856 (UK)
Fax: +31 (0)70 377 3953
HEADQUARTERS or
Royal Dutch Shell plc or
Carel van Bylandtlaan 30 Investor Relations
2596 HR The Hague Shareholder Relations Shell Oil Company
The Netherlands Royal Dutch Shell plc PO Box 2463
Shell Centre Houston, TX 77252
London SE1 7NA USA
United Kingdom Tel: +1 713 241 1042
Tel: +44 (0)20 7934 3363 Fax +1 713 241 0176
Fax: +44 (0)20 7934 7515 [email protected]
royaldutchshell.shareholders@shell. [email protected]
www.shell.com/investor

For questions about: AMERICAN DEPOSITARY RECEIPTS CORPORATE ISA


(ADRs) BNP Paribas Securities Services
SHARE REGISTRATION The Bank of New York Mellon Block C, Western House
Equiniti Shareowner Services Lynchwood Business Park
Aspect House, Spencer Road PO Box 358516 Peterborough PE2 6BP
Lancing Pittsburgh, PA 15252-8516 United Kingdom
West Sussex BN99 6DA USA Tel: 0845 358 1102 (UK)
United Kingdom Tel: +1 888 737 2377 (USA)
Tel: 0800 169 1679 (UK) +1 201 680 6825 (international)
+44 (0) 121 415 7073
Fax: +44 (0) 1903 833168 [email protected]
For online information about your holding and www.bnymellon.com/shareowner
to change the way you receive your company
documents: www.shareview.co.uk

2010 intended interim dividend timetable *

ANNOUNCEMENT DATE EX-DIVIDEND DATE RECORD DATE PAYMENT DATE


4th quarter 2009 February 4, 2010 February 10, 2010 February 12, 2010 March 17, 2010
1st quarter 2010 April 28, 2010 May 5, 2010 May 7, 2010 June 9, 2010
2nd quarter 2010 July 29, 2010 August 4, 2010 August 6, 2010 September 8, 2010
3rd quarter 2010 October 28, 2010 November 3, 2010 November 5, 2010 December 8, 2010

* see cautionary statement

Royal Dutch Shell plc 7


For further information: shell.com/investor

CS The Hague 614376, May 2010

CAUTIONARY STATEMENT

This fact sheet is not an offer to sell securities and should not be construed as an or events to differ materially from those expressed or implied in these statements. Forward-looking
offer to sell securities. There is risk associated with an investment in our common statements include, among other things, statements concerning the potential exposure of Royal Dutch
stock. Accordingly, an investor may lose money on his or her investment in our Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts,
common stock or ADRs. projections and assumptions. These forward-looking statements are identified by their use of terms and
Reserves: Our use of the term “reserves” in this publication means SEC proved oil and gas reserves phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’,
for all 2009 data, and includes both SEC proved oil and gas reserves and SEC proven mining reserves ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’
for 2007 and 2008 data. and similar terms and phrases. There are a number of factors that could affect the future operations of
Resources: Our use of the term “resources” in this publication includes quantities of oil and gas Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-
not yet classified as SEC proved oil and gas reserves or SEC proven mining reserves. Resources are looking statements included in this publication, including (without limitation): (a) price fluctuations in
consistent with the Society of Petroleum Engineers 2P and 2C definitions. crude oil and natural gas; (b) changes in demand for the Shell’s products; (c) currency fluctuations; (d)
Organic: Our use of the term Organic includes SEC proved oil and gas reserves and SEC proven drilling and production results; (e) reserve estimates; (f) loss of market share and industry competition;
mining reserves (for 2007 and 2008) excluding changes resulting from acquisitions, divestments and (g) environmental and physical risks; (h) risks associated with the identification of suitable potential
year-end pricing impact. acquisition properties and targets, and successful negotiation and completion of such transactions; (i)
To facilitate a better understanding of underlying business performance, the financial results are also the risk of doing business in developing countries and countries subject to international sanctions; (j)
presented on an estimated current cost of supplies (CCS) basis as applied for the Oil Products and legislative, fiscal and regulatory developments including potential litigation and regulatory measures
Chemicals segment earnings. Earnings on an estimated current cost of supplies basis provides useful as a result of climate changes; (k) economic and financial market conditions in various countries and
information concerning the effect of changes in the cost of supplies on Royal Dutch Shell’s results of regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts
operations and is a measure to manage the performance of the Oil Products and Chemicals segments with governmental entities, delays or advancements in the approval of projects and delays in the
but is not a measure of financial performance under IFRS. reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate contained in this publication are expressly qualified in their entirety by the cautionary statements
entities. In this publication “Shell”, “Shell group” and “Royal Dutch Shell” are sometimes used for contained or referred to in this section. Readers should not place undue reliance on forward-looking
convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for
Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those the year ended 31 December, 2009 (available at www.shell.com/investor and www.sec.gov ). These
who work for them. These expressions are also used where no useful purpose is served by identifying factors also should be considered by the reader. Each forward-looking statement speaks only as of the
the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as date of this publication, 4 May 2010. Neither Royal Dutch Shell nor any of its subsidiaries undertake
used in this publication refer to companies in which Royal Dutch Shell either directly or indirectly has any obligation to publicly update or revise any forward-looking statement as a result of new information,
control, by having either a majority of the voting rights or the right to exercise a controlling influence. future events or other information. In light of these risks, results could differ materially from those stated,
The companies in which Shell has significant influence but not control are referred to as “associated implied or inferred from the forward-looking statements contained in this publication. There can be no
companies” or “associates” and companies in which Shell has joint control are referred to as “jointly assurance that dividend payments will match or exceed those set out in this publication in the future, or
controlled entities”. In this publication, associates and jointly controlled entities are also referred to as that they will be made at all.
“equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct  
and/or indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.) ownership The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their
interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual
This publication contains forward-looking statements concerning the financial condition, results of production or conclusive formation tests to be economically and legally producible under existing
operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact economic and operating conditions. We use certain terms in this publication, such as resources and oil
are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements in place, that SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors
of future expectations that are based on management’s current expectations and assumptions and are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC
involve known and unknown risks and uncertainties that could cause actual results, performance website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

8 Royal Dutch Shell plc

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