Shell CEO Ben van Beurden in his home office

CEO statement

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Shell has delivered resilient cash flow in a remarkably challenging environment. We continue to focus on safe and reliable operations and our decisive cash preservation measures will underpin the strengthening of our balance sheet.

Our high-quality integrated portfolio, disciplined execution and forward-looking strategy enable sustained competitive free cash flow generation.”

Q2 2020 financial results

$ billion
IFRS earnings ¹
Adjusted earnings
CFFO ex WC
Cash capex
Organic FCF
Integrated Gas
(8.0)
0.4
2.9
0.7
1.9
Upstream
(6.7)
(1.5)
0.5
1.9
(0.7)
Oil Products
(3.0)
2.4
2.4
0.6
(1.0)
Refining & Trading
(3.9)
1.5
Marketing
0.9
0.9
Chemicals
0.2
0.2
0.3
0.4
0.4
Corporate
(0.8)
(0.8)
0.4
_
(0.8)
Non-controlling interest
_
_
RDS
Q2 2020
(18.1)
0.6
6.5
3.6
(0.3)
Q2 2019
3.0
3.5
10.5
5.3
6.2

1 Income/(loss) attributable to shareholders. See reconciliation of Alternative performance (non-GAAP) measures on www.shell.com/investor.

Shell CEO Ben van Beurden on Q2 2020 results

Title: Q2 Results July 2020

Duration 01:52


Description: 

A video led by Ben van Beurden delivering the figures to summarize the Q2 July 2020 Results 

 

Accessibility Script

 

[Audio]

Theme music begins 

 

[Vision]

Ben van Beurden stands in front of a bookcase at home

 

[Ben to Camera]

Over the last few challenging months 

 

[Animation footage]

Ben van Beurden Shell CEO

 

[Ben to Camera]

We at Shell have been working hard to keep energy supplies flowing, and help our colleagues, customers and communities stay safe.

As COVID-19 continues to impact people’s lives and the global economy, our priority is to ensure the resilience of our business, while maintaining safe and reliable operations, every day.

 

[Footage]

Screen split into three sections showing different shots of digitalization examples including the control room on Shearwater platform, a robot arm being controlled for several handlings and a drone being controlled and used to inspect difficult to reach areas on a refinery.

 

[Ben’s voice]

We’ve been nimble in adopting new working practices, which have accelerated digitalisation across the company and many of these are exceeding expectations, creating cost and operating efficiencies for the long term. 

 

[Ben to Camera]

In the second quarter of 2020, Shell has delivered resilient cash flow performance in a remarkably challenging environment. 

Let’s look at some of the key numbers for this quarter:

 

[Ben Voice-over]

Our adjusted earnings were $638 million 

 

[Animation footage]

SHELL RESULTS SUMMARY Q2 2020

 

$638 million adjusted earnings

$18.1 billion loss attributable to shareholders

 

[Ben Voice-over]

and we delivered $6.5 billion of cash flow from operations excluding working capital movements.

 

[Animation footage]

SHELL RESULTS SUMMARY Q2 2020

$6.5 billion cash flow from operations excl. working capital movements

$2.6 billion cash flow from operations

 

[Ben Voice-over]

$243 million of free cash flow

 

[Animation footage]

SHELL RESULTS SUMMARY Q2 2020

$243 million free cash flow

 

[Ben to Camera]

And all of this at an average oil price of less than $30 per barrel in this quarter.

 

[Ben Voice-over]

Return on average capital employed was 5.3%.

 

[Animation footage]

SHELL RESULTS SUMMARY Q2 2020

5.3% ROACE 

 

[Ben Voice-over]

And gearing is now 32.7%

 

[Animation footage]

SHELL RESULTS SUMMARY Q1 2020

32.7% GEARING 

 

[Ben to Camera]

We will continue to focus on strengthening the balance sheet, capital discipline and delivering our cost reduction targets. 

 

[Animation footage]

Strengthening the balance sheet

Capital discipline

Delivering cost reduction

 

[Ben to Camera]

As we look to the future, we remain committed to protecting value, growing our business and building a platform for increasing shareholder value.

 

[Animation footage]

Protecting value

Growing our business

Platform for shareholder value

 

[Ben to Camera]

Please stay safe, stay healthy and take care for each other.

 

[Audio]

Theme music fades out

 

[Graphic]

Shell logo

#ShellResults

©Shell International Limited 2020

 

[Graphic]

Graphic appears reading: 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 Shell 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.

 

[Graphic]


A graphic appears titled Definitions and cautionary note, relevant to the video.

Webcast, presentation slides and transcript

Ben van Beurden, (CEO, Royal Dutch Shell plc) and Jessica Uhl (CFO, Royal Dutch Shell plc) hosted teleconferences and audio webcasts of the second quarter 2020 results on Thursday July 30.

  

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