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Royal Dutch Shell plc delivering new growth

Shell’s management hosted an investor day in New York today

At an investor day in New York today, Shell confirmed solid progress in starting up three world-class oil & gas projects in 2011, which at peak will add some 400,000 barrels oil equivalent (boe) for Shell.

Shell’s three-year strategic plan, outlined in 2010, is building the foundations for profitable growth for shareholders in the future. We are improving near-term competitive performance, and delivering a new wave of production growth.

Shell’s CEO Peter Voser commented “we’re making good progress in delivering our strategy. Shell’s decision to maintain investment in new projects in the 2009 downturn is driving growth in the company today.”

In Canada oil sands, we have progressed with ramping-up of the expansion project at our Scotford Upgrader, and ASOP-1 recently reached its full production level of 100,000 b/d. In Qatar, the Qatargas 4 LNG project reached production plateau earlier this year. Ramp up of Train 1 of the Pearl GTL project continues to make good progress, with Train 2 on track for start-up before year- end, as planned.

These three projects, representing some $30 billion of investment, underpin our targets for financial and production growth to 2012. We are on track to deliver our strategic targets for 50-80% growth in cash flow from operations from 2009 to 2012, driven by cost savings, operating performance, and an 11% increase in oil & gas production from one of the most substantial portfolios of new oil & gas projects in our industry today(1).

Building on this growth, the company has launched 14 further Upstream projects so far in 2010-11, which have a expected peak production of some 400,000 boe/d for Shell in the medium term, and underpinning our longer-term growth potential.

In Downstream, as we complete a major phase of asset sales, we are consolidating this reshaped portfolio, focusing on operating performance, and investing in selective growth, for example recently forming the Raìzen biofuels and marketing joint venture in Brazil.

Voser concluded “we’ve continued with our growth momentum by adding to Shell’s medium-term project pipeline, during a period where development costs have been attractive, in the recent downturn. The scale and integration of projects such as Pearl GTL, Raìzen biofuels and Prelude floating LNG are unique in our industry today, and are a solid platform to create long term value for our shareholders”.

(1) Oil & gas production outlook in this release is in an $80 oil price scenario, and assumes licence extensions & 2010 asset sales. 2012 cashflow targets in $60-$80 scenarios, and assume improved downstream and natural gas environment 2009-2012.

Enquiries

Group Media Relations
+31 70 3773600

Shell Investor Relations
Europe – Tjerk Huysinga: + 31 70 377 3996
United States – Ken Lawrence: +1 713 241 2069

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Cautionary Note

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this press 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 press release 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 has significant influence but not control are referred to as “associated companies” or “associates” and companies in which Shell has joint control are referred to as “jointly controlled entities”. In this press release, 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 press 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’’, “scheduled”, ‘‘estimate’’, ‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, ‘‘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 press 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. All forward-looking statements contained in this press 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 factors that may affect future results are contained in Royal Dutch Shell’s Annual Presentation release / Form 20-F for the year ended December 31, 2010 (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 press release, 9 September 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.
 
We may have used certain terms in this presentation 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. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

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Download the presentations slides and transcripts from the New York investor day on September 9, 2011.