Management Day in London, March 13, 2014
Mar 13, 2014
On Thursday, March 13, 2014 Royal Dutch Shell plc hosted a Management Day in London.
CEO statement
Shell 2014 Strategy update
0:09
Hello, I am Ben van Beurden, the CEO of Royal Dutch Shell.
0:12
We’re holding a management day today with shareholders and analysts, and let me give you a summary of that.
0:18
Shell adds value through technology, disciplined capital investment, integrated operations and scale
0:24
and our strategy is to deliver cash flow growth through the cycle, and competitive returns.
0:30
And all of this is of course underpinned by an unrelenting focus on safety.
0:34
We’ve achieved a lot in the last few years and Shell has considerable strengths in portfolio,
0:40
technology and management capabilities.
0:42
This is an ambitious company, with plans for further growth.
0:46
However, our 2013 results underlined the need to shift the emphasis in 2014.
0:52
We’ve laid out an agenda for 2014 and beyond for a better financial performance in particular
0:57
in our Upstream Americas and Downstream businesses to enhance our capital efficiency
1:02
and to continue with strong project delivery so that we can continue to grow our cash flow
1:07
and improve our returns.
1:10
In Upstream Americas, let me highlight that we are seeing good profitability and growth potential
1:15
in both deep-water and heavy oil, for example with the start up of the Mars B field recently in the Gulf.
1:21
The resources plays positions, such as shales, are in a loss and we have restructuring programmes
1:27
underway there, including asset sales and a 20% spending reduction.
1:32
In Downstream, businesses like chemicals and biofuels are actually performing well,
1:38
but there is a large range of performance in refining high and low returns and we need to
1:43
improve right across the portfolio.
1:46
Overall, we are taking stock, all the way through our development and production pipeline
1:52
and are challenging ourselves if our assets are attractive economically,
1:57
and are they resilient to industry cycles?
1:59
Are our plans for new projects credible, are they competitive and are they affordable?
2:04
In this way, we aim to continue to balance cash flow growth with improved returns,
2:10
to add value for our shareholders.
2:13
Thank you.
Management Day webcasts
Ben van Beurden, Chief Executive Officer of Royal Dutch Shell plc hosted two webcast of the 2014 management day presentation on Thursday March 13, 2014.