Shell CEO Ben van Beurden in his home office

CEO statement

Royal Dutch Shell Chief Executive Officer, Ben van Beurden commented:

"Our sector-leading cash flows will enable us to grow our businesses of the future while increasing shareholder distributions, making us a compelling investment case.

"We must continue to strengthen the financial resilience of our portfolio as we make the transition to become a net-zero emissions energy business. Our decisive actions taken earlier in the year have solidified our operational and cash delivery. The strength of our performance gives us the confidence to lay out our strategic direction, resume dividend growth and to provide clarity on the cash allocation framework, with clear parameters to increase shareholder distributions."

Chad Holliday

Chair of the Board statement

Chair of the Board of Royal Dutch Shell, Chad Holliday commented:

“The Board has reviewed Shell’s recent performance and its plans to grow its businesses of the future, and we are confident that Shell can sustainably grow its shareholder distributions as well as invest for growth.

"As a result, the Board has decided to increase the dividend per share to 16.65 US cents for the third quarter 2020. The Board has additionally approved a cash allocation framework for Shell which, on reducing its net debt to $65 billion, will target total shareholder distributions of 20-30% of cash flow from operations."

Q3 2020 financial results

$ million
IFRS earnings ¹
Adjusted earnings
CFFO
CFFO ex WC
Cash capex
Organic FCF
Integrated Gas
(151)
768
2,323
2,396
1,020
1,352
Upstream
(1,110)
(884)
2,101
2,629
1,245
821
Oil Products
2,092
1,680
5,131
3,476
832
4,296
Refining & Trading
498
55
Marketing
1,594
1,626
Chemicals
131
227
335
488
595
(260)
Corporate
(739)
(792)
514
(33)
45
505
Non-controlling interest
45
45
RDS
Q3 2020
489
955
10,403
8,955
3,737
6,713
Q3 2019
5,879
4,767
12,252
12,083
6,098
6,630

1 Income/(loss) for Q3 2020. Oil Products and Chemicals presented on a current cost of supplies basis. See reconciliation of non-GAAP measures on www.shell.com/investors.

Results presentation

Ben van Beurden, (CEO, Royal Dutch Shell plc) and Jessica Uhl (CFO, Royal Dutch Shell plc) hosted third quarter 2020 results Q&A webcasts for media and analysts on Thursday October 29, 2020.

Below you can watch the video of the results presentation and the videos of the two Q&A sessions. 

Next to that you can view the slides online or download the slides in PDF format, both with and without speech text.

Video of results presentation

Title: Shell’s third quarter 2020 results presentation : Investor Relations

Duration: 21:45 minutes

Description:

Ben van Beurden, (CEO, Royal Dutch Shell plc) and Jessica Uhl (CFO, Royal Dutch Shell plc) will host a results analyst webcast of the third quarter 2020 results.

Accessibility script

[Music]

Melancholic Sound of Shell tune plays

[Text displayed]

Third Quarter / Results

A compelling Investment case

3

Royal Dutch Shell plc

October 29, 2020

#MakeTheFuture

[Video footage]

Wide shot of Ben van Beurden and Jessica Uhl on stage with a third quarter background. Ben stood next to a tall table and high stool. Jess is perched on the high stool leaning on the table.

[Voice of Ben]

Ladies and gentlemen welcome and thank you for being with us today.

[Video footage]

Mid shot of Ben talking to the camera.

[Text displayed]

Ben van Beurden

Chief Executive Officer

Royal Dutch Shell plc

[Voice of Ben]

Today we present the third quarter results. And we want to give you an update on our strategic direction, ahead of our Strategy Day in February. You will see why we are a compelling investment case. Because we have strong performance today and because we are setting ourselves to grow and deliver even stronger performance tomorrow. And we want to be clear on our investment proposition. On how we are going to translate the value that Shell generates into shareholder distributions.

[Video footage]

We cut back to the wide shot of Ben and Jess sharing the stage

[Voice of Ben]

So we will talk about the Shell of today. We will then talk about the Shell of tomorrow. And we will talk about what this means to our shareholders.

[Video footage]

Cut to a mid shot of Ben van Beurden

[Voice of Ben]

I will start this presentation by touching on the deep financial and operational resilience that we have shown this year. And then building on this financial resilience, I can, with confidence, offer further clarity on our strategic direction. This direction is still being worked into a full strategic update that we will present in February at our Strategy Day. But today we can already provide clarity on our cash allocation framework.

[Video footage]

We cut back to the wide shot of Ben and Jess sharing the stage. Ben gestures towards Jess.

[Voice of Ben]

Jessica will then lay out the priorities for cash allocation

[Video footage]

Midshot of Jess Uhl

[Voice of Ben]

And she will also cover the highlights of our third quarter results.

[Video footage]

Cut to a mid shot of Ben van Beurden

[Voice of Ben]

Lastly, I will give you a more detailed update on our businesses and how our strategic direction translates in our portfolio choices and our ability to thrive in the energy transition. Before we start, let me highlight the disclaimer statement.

[Text displayed]

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

[Video footage]

Back to a mid shot of Ben van Beurden

[Voice of Ben]

So, let's look at what we have today, a portfolio that has shown impressive resilience during these remarkably challenging times.

[Video footage]

A graphic appears to the right of Ben whose face is still visible. The graphic has the title A Compelling Investment Case which contains information relative to the video on making the future of energy.

[Voice of Ben]

We have a competitive portfolio with a solid track record on cash generation, which is absolutely leading our peer group. And it is upon the firm foundations of this portfolio that we build our future and help make the future of energy. And we believe the future of energy is particularly bright for our Marketing and our customer-facing businesses where we already have scale. So we will accelerate a growth plan that is already under way. For our Upstream businesses, we will focus on our core competencies to maximise cash delivery and returns, which will fund the path to our future, while also continuing to provide vital energy supplies. Our Integrated Gas and Chemicals businesses, too, will play a key role in that future as enablers of our strategy. And, as we make that future, we believe that our integrated business model makes the difference. Through it we create additional value from trading and optimisation. Through it, our portfolio is greater than the sum of its parts. Now, that portfolio will change over time. We will remain disciplined on capital and also relentlessly high-grade our portfolio through divestments. Something that will not change, is our focus on targeting AA-equivalent credit metrics through the cycle. Another thing that will not change is our commitment to increasing shareholder distributions. That is why, today, we are starting a new era of dividend growth. As of this quarter we are increasing our dividend per share by 4%; and subject to Board approvals, we plan to grow the dividend every year to come. We will also work to reduce our net debt to $65 billion. And once we have reached that milestone, we will target further increasing distributions to our shareholders. We target to distribute, on aggregate, 20-30% of our cash flow from operations. So we are reshaping our investment case.

[Video footage]

Back to a mid shot of Ben van Beurden

[Voice of Ben]

And we are reshaping Shell. That means that we need to reshape our organisation as well.

[Video footage]

Ben is talking next to another graphic title Reshaping Shell For The Future of Energy, the slide contains information relative to the video.

[Voice of Ben]

We are redesigning Shell to put the customers at the center. That means setting ourselves up to help key sectors in the economy with their decarbonisation journeys. We will also become simpler and more cost effective. But that comes with some difficult choices. We will cut between 7,000 and 9,000 jobs.

[Video footage]

Mid shot of Ben van Beurden

[Voice of Ben]

As I mentioned earlier, I will share more updates on each of our businesses later. Now, Jessica will give you more detail -

[Video footage]

Wide shot of Ben and Jess standing on stage

[Voice of Ben]

on the cash allocation framework and insights into our third quarter results, Jessica.

[Video footage]

Mid shot of Jessica talking to the camera.

[Text displays]

Jessica Uhl

Chief Financial Officer

Royal Dutch Shell plc

[Voice of Jess]

Thank you Ben. As Ben said, ahead of our strategy update in 2021, we are further clarifying our strategic direction and what that means for our priorities for cash allocation

[Video footage]

A graphic appears to the left of Jessica titled Target Shareholder Distributions of 20-30% of CFFO. This contains details relating to the video.

[Voice of Jess]

For cash capex, we plan to spend between $19 and 22 billion in the near-term. At the same time, we remain committed to our progressive dividend policy. Earlier this year we re-based our dividend to protect our balance sheet in response to the profound impacts of the pandemic. And we have taken other decisive actions to preserve cash this year. Those actions have made us stronger financially and operationally in a challenging environment. And now that we have more visibility on the pandemic's impact and the implications for Shell, along with a clear strategy, we can align our approach to shareholder distributions to underpin our investment case. So as Ben said, we will grow the dividend per share by 4% this quarter and will grow the dividend per share annually thereafter, subject to Board approval. We continue to target AA credit metrics through the cycle. And for the near term, we will reduce our net debt to $65 billion, including leases, from $73.5 billion as at Q3 quarter end. We believe that the $65 billion net debt level is a milestone, that in the near-term, places us at the threshold of the AA credit metrics range. And once we have reduced our net debt to this level, we target to further increase total shareholder distributions to be in total, in the range of 20 to 30% of our cash flow from operations, through dividends and share buybacks.

[Video footage]

Back to the mid shot of Jess

[Voice of Jess]

Once we have achieved this level of shareholder distributions, additional surplus cash will be allocated between further, disciplined capital investments to deliver our strategy and further debt reduction to strengthen the balance sheet. We will share more details in February, but I wanted to be clear today on our priorities for cash and our near-term targets. This framework reflects the strong fundamentals from our strategy to our day-to-day performance, demonstrated at what we believe is the bottom of the cycle. And that brings me to our strong results for the quarter.

[Video footage]

Another graphic slide appears next to the mid shot of Jess. Titles Q3 2020 / Strong Cash Flow Generation Proving Financial Resilience, this has details related to the video.

[Voice of Jess]

In the third quarter, we saw some recovery in our realised oil and gas prices as well as some improvements in demand from earlier in the year, but we also saw weaker realised LNG prices due to the time lag with the oil price built into many of our contracts. Lower volatility in the quarter left fewer opportunities for trading and optimisation as well. Our volumes were reduced by OPEC+ restrictions and the impact of hurricanes in the US Gulf of Mexico. But despite these headwinds we performed remarkably well. Our adjusted earnings were $1 billion in the third quarter. ROACE was almost 4%. We delivered $9 billion of cash flow from operations excluding working capital movements and our free cash flow was $7.6 billion in the quarter. This free cash flow enabled us to further strengthen our balance sheet and reduce net debt by more than $4 billion in the third quarter, bringing it to its lowest level in a year.

[Video footage]

Back to the mid shot of Jess

[Voice of Jess]

Our strong financial results demonstrated, once again, the quality of our portfolio.

[Video footage]

A graphic is shown to the left of Jess, titled Q3 2020 / Financial Highlights: Adjusted Earnings it has detail relating to the video.

[Voice of Jess]

And this quarter I want to highlight the performance of our Marketing business. This business has shown impressive resilience, with a steady growth trend. Marketing delivered over $1.6 billion in Adjusted Earnings in the third quarter, despite the impact of the pandemic on our sales volumes. That record performance reflects growth in the sales of premium fuels such as Shell V-Power and our high-end lubricants. It also reflects a significant increase in our non-fuels sales per customer from our convenience retail shops.

[Video footage]

Back to the mid shot of Jess

[Voice of Jess]

So we are pleased with how our marketing business is performing today and excited about its growth potential for the future.

[Video footage]

A graphic is shown to the left of Jess, titled Q3 2020 / Financial Highlights: CAsh Flow and it has detail relating to the video.

[Voice of Jess]

And our cash conversion has again been strong.The cash generated this quarter and so far this year shows our capacity to deliver strong cash flows even at the bottom of the cycle. This also demonstrates the quality of our operations and the value we add through integration as we optimise energy flows to create additional value from our assets. Our resilient and robust cash generation quarter after quarter is another indication of the quality and balance of our portfolio, which reflects the portfolio choices we've made and continue to make. This also reflects the integration with trading and optimisation, bolstering our cash generation. That is why we have consistently generated more operating cash than our peers. Now, I expect you will want to hear more on the strategic direction…

[Video footage]

Wide shot of Ben and Jess standing on stage

[Voice of Jess]

so let me hand back to Ben.

[Video footage]

Mid shot of Ben van Beurden

[Voice of Ben]

Thanks Jessica. Now that we have talked about the Shell of today and our near-term proposition to shareholders, let me cover the heart of our investment case: the Shell of tomorrow.

[Video footage]

A graphic titled Shell’s Climate Ambition is on screen to the right of Ben it has details relating to a net-zero emissions energy business by 2050 or sooner.

[Voice of Ben]

Our strategy is all about the customer. And it is about society. We already provide energy to millions of customers every day. And that is what we intend to continue. In fact we intend to grow. Providing energy wherever and whenever our customers need it and in the form they need it. Over recent years, we have seen our customers and society demand low and zero carbon energy solutions and this is where the future of energy lies. It was in 2017 that we started pivoting Shell to thrive in the energy transition. It was then that we announced our Net Carbon Footprint ambition. And in April 2020, we announced what is still a sector-leading climate ambition. We aim to be a net-zero emissions energy business by 2050, or sooner.

[Video footage]

The graphic disappears and we are left with the mid shot of Ben.

[Voice of Ben]

We will do this in step with society. We will do so by working with others. And yes, our business plans will have to change over time. And with this end-goal in mind, we have set our strategy to deliver value today and tomorrow.

[Video footage]

The new graphic to the right of Ben is called Making The Future Of Energy and has information detailed in the video.

[Voice of Ben]

So, this is how our strategy translates to each one of our businesses. As you can see on the slide, we like to think of Shell as three types of businesses. Our Upstream business represents the way we generate value from resources. Transition businesses look to efficiently utilise our assets to create trading and optimisation opportunities. And we see Growth businesses building on our unmatched presence in markets across geographies and sectors to serve our customers.

[Video footage]

The graphic has changed to include more information in regards to the three sectors of the business. Ben is still visible on the left.

[Voice of Ben]

For our Upstream business, we will focus on our highly cash-generative assets. This means we will simplify and high-grade the portfolio to core positions. Our Transition businesses will enable our strategy. We believe that LNG will continue to play a key role as we move through the energy transition. We already have a market-leading position in LNG. But, we will build on that to grow with the market and further capitalise on our existing strengths. Chemicals will be another key business through the energy transition. Demand will increase as the world population grows. And for Refining we will further high-grade our footprint and maximise the integration with Chemicals. That takes me to our Growth businesses. This is where we see the long-term future of Shell. We will accelerate our growth in Marketing and mobility. We are already in a very good position. In fact, what we already are today, is what others aspire to be in the future. We will also increase our focus on future energy businesses. This means making the most of the capabilities we already have, and building out the ones we need. It means establishing new business models in power, in hydrogen and in biofuels. Across these three business types we are building our future.

[Video footage]

Back to a mid shot of Ben.

[Voice of Ben]

We are building with prudence, yes, and also with confidence and with conviction.

[Video footage]

Full screen graphic shows details of Upstream Business / A more focused competitive and resilient portfolio to deliver cash.

[Voice of Ben]

I will now cover each business in a bit more detail, starting with Upstream.

[Video footage]

The same graphic now appears to the right of the mid shot of Ben.

[Voice of Ben]

Let me first take a moment here to say that we are proud of our Upstream business and how it has already transformed in recent years. Tier-1 assets combined with a relentless focus on resilience and cash generation truly sets us apart in our sector. And this journey is not over yet. We plan to drive further unit cost reductions to get more value out of our barrels. To do so, we will focus on nine core positions that are resilient on both commodity price and carbon. These positions already generate more than 80% of the operating cash flow in Upstream.

[Video footage]

Back to a mid shot of Ben.

[Voice of Ben]

The rest of the portfolio will be managed under a new lean operating model, under which we either develop, manage for cash or divest. This model will bring the additional focus and resiliency that Upstream will need to sustainably generate cash over the coming decades.

[Video footage]

A graphic appears to the right of Ben showing more detail related to the video. It is titled Transition Business / Chemicals and Refining Delivering Integrated Value.

[Voice of Ben]

In Refining, we also see the opportunity to high-grade our portfolio. For us, the strategic value of refining is in its integration. That means integration with trading and optimisation of course. But, it also means integration with Chemicals and increasingly with low carbon fuels, like biofuels, hydrogen and synfuels. And, to that end, we will concentrate our portfolio in six positions that we call energy and chemicals parks, mainly around the US Gulf Coast, North West Europe and Singapore.

[Video footage]

The graphic changes with more detail on the video and is titles Transition Business / Integrated Gas LNG Enabling Decarbonisation of Key Markets and Sectors

[Voice of Ben]

Another of our Transition businesses is Integrated Gas. As you all know, this is an area of great strength for Shell one that marks us out from the crowd. As the world moves to low carbon and later to zero-carbon energy supplies, natural gas will play a key role as a source of energy. LNG is the bridge from coal or even oil to renewables and other carbon neutral energy solutions. But, LNG also has a role to play in dealing with the intermittence of renewable power generation. Gas fired power can be used when there is no wind or when the sun is not shining. It can ensure a secure, continuous supply of power to our customers. And it is not just in power generation that LNG can play a role. We are opening up new markets for LNG as a fuel for ships, for example, or trucks. LNG is already being used for both more and more.

[Video footage]

Back to a mid shot of Ben talking to camera

[Voice of Ben]

In fact, globally, we expect LNG demand growth to outpace the growth in total demand for energy. But we will remain selective in our investments in LNG and we don't expect to develop new greenfield Gas to Liquid projects anymore. We already are the market leader in LNG and have an unmatched LNG supply portfolio and a large, diverse customer base. That gives us solid competitive advantages which will allow us to grow the value of this business. And our trading and optimisation capabilities in LNG have been built up over decades of experience. We are uniquely placed in this market and this market is uniquely placed for the energy transition.

[Video footage]

A graphic slide next to Ben has the title Growth Businesses / Marketing Platform For Further Growth and has details regarding the video.

[Voice of Ben]

Moving on, now, to our Growth businesses. The energy transition is bringing major change and our customers, too, are changing their preferences. This is true of mobility and it is also true of the demand for convenience. Both these major trends provide opportunities for our Marketing business. And our position here is also very strong. We have more retail sites than our competitors. And we serve more than 30 million customers every day across around 80 markets providing fuels, lubricants, electric vehicle charging points, food and even groceries. This gives us scale. And it also gives us powerful insights into our customers’ preferences and future profitable propositions. Through all of this we are leading the industry by a significant distance. Our Marketing business has doubled its profitability in the last few years and delivered nearly $5 billion of adjusted earnings in 2019. It has also shown impressive resilience through the global pandemic.

[Video footage]

Back to a mid shot of Ben talking to camera

[Voice of Ben]

So, our strategy for Marketing is to use our leading position to grow even further as the demand for mobility and convenience will only grow. But, we also intend to make the most of cross-selling opportunities with our Power business.

[Video footage]

A graphic appears next to the midshot of Ben with the title Growth Businesses / Integrated Power Portfolio Delivering Customer Centric Energy Solutions this has more detail regarding the video.

[Voice of Ben]

And, of course, Power is another growth business for Shell. Also here we start, with the customer. Customers want convenience, mobility, competitive prices and security of supply and increasingly they want to decarbonise. Customers - both businesses and consumers - are looking to simplify the complexity of decarbonisation. What they want is a simple solution from a trusted brand. And here, again, Shell's integrated business model gives us an advantage. Our integrated power strategy fundamentally works back from the customers to solve their energy transition needs. This is an important difference in mindset from our peers in the power market who focus on an asset centric portfolio and the incremental returns from optimising such assets. So, we are not building a power generating business to sell a commodity in the same way as a standalone independent power producer. We are building an integrated business that absolutely prioritises customer needs through the energy transition. Integration in our customer offering, with the ability to cross-sell products and integration across a whole spectrum of power businesses to maximise value.

[Video footage]

Back to a mid shot of Ben talking to camera

[Voice of Ben]

But you may ask: why is Shell the right company to capture these opportunities? I will tell you why. We are not starting from scratch in Power. We have unique customer access. We serve millions of customers every day, which gives us insights and in-house expertise in understanding customers needs and wants. And we have solid trading and optimisation capabilities and scale that we have built up over decades, which are central to our ability to understand markets and optimise value chains. We are already one of the largest power wholesalers in North America. And as to our positions in renewable power generation I can tell you we will be selective, and we will enhance returns through dilution and competitive financing.

[Video footage]

A graphic appears next to Ben with the title Growth Business / Hydrogen and Biofuels Creating Commercial Opportunities with more detail regarding the video.

[Voice of Ben]

Looking further into the future, we also see significant growth opportunities for biofuels and hydrogen. And, once more, we start from a strong position. Today, we already rank among the largest blenders and distributors of biofuels in the world. We continue to invest in new ways of producing biofuels from sustainable feedstocks, such as waste products or cellulosic biomass. And through our joint-venture Raízen in Brazil, we produce and sell billions of litres of ethanol every year. In fact, if Raízen were a country, it would be the fifth largest biofuels producing nation in the world. And in hydrogen, we have already built an industry-leading position in what is still a small market. Around 50 hydrogen retail sites in Europe and North America. Building the largest PEM electrolyser in the world in Germany. And working on plans for an electrolyser in the Netherlands that would be 20 times bigger than the one we are building in Germany today.

[Video footage]

Back to a mid shot of Ben talking to camera

[Voice of Ben]

So, we are uniquely positioned to serve the needs of our customers whether they need electrons, biofuels, or hydrogen. Let me now wrap up before we close out.

[Video footage]

A graphic explaining Ben’s next three points titled A Compelling Investment Case appears.

[Voice of Ben]

There are three things I would like you to take away. First, that our portfolio and operations have shown remarkable resilience in incredibly challenging times. Second, that Shell is very well positioned to capture value in the energy transition with the strong position we start from and the strategic direction that we have. We are ahead. We have a portfolio today that others aspire to have in years from now. Third, that we have a clear framework for our investment case, not only offering the promise of future growth, but also increasing shareholder distributions today

[Video footage]

We return to the wide shot of Ben and Jess on the stage

[Voice of Ben]

We will have a further update for you at our next Strategy Day on the 11th of February 2021. But for now. Thank you for being with us today.

[Music]

Pneumonic Sound of Shell

[Video footage]

Shell pecten on white background

[Text displays]

© Shell International Limited 2020

Media Q&A

Analyst Q&A

HTML5 Experiment: Hide QA transcript

CEO & CFO video comment

Title: Q3 Results October 2020

Duration 02:57

 

Description:

A video led by Ben van Beurden and Jessica Uhl delivering the figures to summarize the Q3 October 2020 Results

Accessibility Script

 

[Audio]

Theme music begins

[Vision]

Ben van Beurden standing in a nice room with a painting on the wall and some chairs in the background.

[Ben to Camera]

The energy system is changing fast and change is opportunity.

[Animation footage]

Ben van Beurden Shell CEO

[Ben to Camera]

As we reshape Shell for the future, our clear cash allocation framework

will enable us to reduce debt, increase distributions to shareholders and allow for measured, disciplined increases in capex to deliver growth.

Our ambition is to be a net-zero emissions energy business by 2050 or sooner, in step with society. So we will continue to transform the company, leveraging our portfolio, our capabilities and financial capacity to make the future of energy.

This means…

[Animation footage]

Reshape Shell
Reduce debt
Increase shareholder distribution
Deliver growth
Net zero emissions energy business

[Ben’s voice]

...growing our leading marketing business, further developing our integrated Power business and commercialising hydrogen and biofuels to help all our customers…

[Footage]

Drive by shoot of a Shell retail station at night. Medium shot of a retail station employee waving a customer goodbye. Close shot of a hand grabbing a nozzle. Wide drone shot of wind farm park in the north-sea. A little boat is sailing in between windturbines. Fly-over shot of solar park. Wide shot of a taxi driving on hydrogen. Shot of the sun shining through sugarcane plants. Wide shot of a tractor harvesting the sugarcane.

[Animation footage]

MARKETING
POWER
HYDROGEN
BIOFUELS

[Ben to Camera]

...to achieve net zero.

[Ben’s voice]

Our refining portfolio will be integrated with Chemicals, resulting in six high-value energy and chemicals parks. We will also extend our leadership in liquefied natural gas,

helping our customers to decarbonise. And a simplified Upstream business will focus on

nine core positions with a strong integrated value.

[Footage]

Several aerial shots of the Moerdijk chemicals plant. Wide shot of the Cardissa LNG ship at sea. Close up shot of hands decoupling LNG tank. Wide shot of truck arriving at an LNG station. Aerial shot of Shearwater platform. Several shots following an employee walking around on the Shearwater platform.

[Animation footage]

CHEMICALS AND PRODUCTS
INTEGRATED GAS
UPSTREAM

[Vision]

Jessica Uhl standing in a nice room with a painting on the wall and some chairs in the background.

[Jessica to Camera]

The decisive measures we took this year to preserve cash

[Animation footage]

Jessica Uhl Shell CFO

[Jessica to Camera]

have been instrumental for our operational and cash delivery and have significantly strengthened our financial resilience. This in turn has allowed us to accelerate our strategic plans and lay out our updated cash priorities. We remain committed to our progressive dividend policy. We will grow the dividend per share by 4% this quarter, and continue that annually, subject to Board approvals.

[Animation footage]

Preserve cash
Financial resilience
Updated cash priorities
Grow dividend per share


[Jessica Voice-over]

We will maintain our strong capital discipline,

and focus on reducing net debt to $65 billion.

Once we achieve this level of debt, our target is to

further increase total distributions to our shareholders.

[Animation footage]

CASH ALLOCATION FRAMEWORK

$19-22 billion
near-term annual cash capex

[Jessica Voice-over]

and focus on reducing net debt to $65 billion.

[Animation footage]

CASH ALLOCATION FRAMEWORK

$65 billion

Net debt reduction

[Jessica Voice-over]

Once we achieve this level of debt, our target is to

further increase total distributions to our shareholders.

[Animation footage]

CASH ALLOCATION FRAMEWORK

20-30% target
of CFFO distribution
to shareholders

[Jessica to Camera]

In the third quarter of 2020 we continued to perform

very well in a remarkably challenging environment.

[Animation footage]

$1 billion
Group Adjusted Earnings

[Jessica to Camera]

Our Marketing business contributed a record $1.6 billion in Adjusted Earnings.

Cash generation was also a highlight this quarter, with $9 billion of cash flow from operations excluding working capital movements. This demonstrates the quality of our portfolio and the value we create through integration.

 

[Animation footage]

Record quarter for Marketing
Strong cash generation
Quality of portfolio

[Ben to Camera]

Today we have a competitive and resilient portfolio with an enviable track record of cash generation.

Shell will change over time.

Our reshaped portfolio will allow us to continue generating significant cash, grow our businesses of the future and increase shareholder distributions, making us a compelling investment case.

[Animation footage]

Reshaped portfolio
Grow businesses of the future
Compelling investment case

[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.

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

  

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