Title:Ben van Beurden, CEO of Shell, comments on the Q2 2016 resul
Duration: 2:48 minutes
Description:
A company update where Ben van Beurden, CEO of Shell, comments on the Second Quarter 2016 results.
Ben van Beurden, CEO of Shell, comments on the Q2 2016 resul Transcript
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Company Update / Second Quarter 2016 Results / Royal Dutch Shell / July 28, 2016
Comments from Ben van Beurden
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CEO Royal Dutch Shell
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Ben van Beurden / CEO Royal Dutch Shell
[Ben van Beurden]
Hello. I’m Ben van Beurden, the CEO of Royal Dutch Shell. Today, we announced our quarterly financial results. And let me update you on that.
Downstream and Integrated Gas contributed strongly to the results, alongside Shell’s self-help programme. But, lower oil prices continue to be a significant challenge across the business, particularly in Upstream.
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Close-up of Ben van Beurden, tree foliage visible through the window behind him.
[Ben van Beurden]
Excluding identified items, Shell’s earnings on a current cost of supplies basis were $1 billion US for the second quarter of 2016.
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Still shot looking down a red and yellowpathway bridge of an offshore oil platform.
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CCS Earnings Second Quarter 2016 / $1 billion
[Ben van Beurden]
That’s a 78% decrease in earnings per share compared to the second quarter of 2015.
Brent averaged $46 a barrel in the quarter and at the same time, Downstream margins were also lower, both in refining and in chemicals, and these macro effects have dominated in the results this quarter, despite the strong progress that we are making on costs.
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Close-up of Ben van Beurden, tree foliage visible through the window behind him.
[Ben van Beurden]
We are managing the company through the down-cycle by reducing costs and spending, selling non-core assets to streamline the portfolio and by delivering profitable new projects.
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Close-up of Ben van Beurden, tree foliage visible through the window behind him.
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Reducing costs
Selling non-core assets
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Wide still shot of an offshore drilling vessel in dark blue waters, pale blue and cloudy skies above with some land visible in the distance.
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Delivering profitable new projects
[Ben van Beurden]
We’re firmly on track for a $40 billion underlying operating cost run rate at the end of 2016 and we are delivering on lower and more predictable investment plans, with around 29 billion this year. This includes postponing FID on two LNG projects in North America recently, LNG Canada and Lake Charles.
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Close-up of Ben van Beurden, tree foliage visible through the window behind him.
[Ben van Beurden]
We are progressing also with our $30 billion divestment plan with delivering profitable new projects with a $10 billion cash potential in 2018 and with eight start-ups in 2016.
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Close-up of Ben van Beurden, tree foliage visible through the window behind him.
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Progressing our $30 billion divestment plan
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Low angle still shot of an FPSO vessel resting in dark waters, pale blue and cloudy skies above with some land visible in the distance.
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Profitable new projects with $10 billion cash potential 2018
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Bird’s eye view still shot of another FPSO vessel, Turritella against a background of dark sea and dark, cloudy skies still streaked with some evening light. The vessel has numerous lights burning down the length of the vessel.
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8 start-ups in 2016
[Ben van Beurden]
We’re making good progress with new projects. Underlying oil and gas volumes were up 2% Q2 versus Q2, and that’s excluding BG, and 2016 start-ups will be around 280,000 barrels of oil equivalent per day for Shell, when ramped up.
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Close-up of Ben van Beurden, tree foliage visible through the window behind him.
[Ben van Beurden]
Looking further out, post-2020, we’ve launched new petrochemicals investments in China and the USA recently and had a notable oil discovery with the Fort Sumter well in the deepwater Gulf of Mexico.
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Close-up of Ben van Beurden, tree foliage visible through the window behind him.
Still shot of tall steel tanks and scaffolding or support structures against the background of a pale blue sky.
Point of view still shot of the wake of a vessel in the ocean, taken from on-board.
Bird’s eye view of the vessel in deep blue waters, the wake visible behind the vessel.
[Ben van Beurden]
So overall, looking through the cycle, our investment plans and portfolio actions are focused firmly on reshaping Shell into a world-class investment case,and this means stronger, sustained and growing free cash flow per share. Thank you very much for listening to the message.
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Close-up of Ben van Beurden, tree foliage visible through the window behind him.
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Thank you for visiting our site. Please understand that an investment in Royal Dutch Shell plc securities carries with it the risk that you could sustain losses as a result of your investment. Therefore, an investment in Royal Dutch plc securities may not be appropriate for all investors. Accordingly, before investing in our securities we urge you to read our Annual Report and Form 20-F and consider the risks discussed within. You can find our Annual Report and Form 20-F on the link next to this presentation.
Again, thank you for your interest in Royal Dutch Shell plc.
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Definitions & Cautionary Note
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Royal Dutch Shell / July 28, 2016
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© Shell International Limited 2016