Management Day in London, March 13, 2014

Shell 2014 Strategy update

 

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Hello, I am Ben van Beurden, the CEO of Royal Dutch Shell.

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We’re holding a management day today with shareholders and analysts, and let me give you a summary of that.

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Shell adds value through technology, disciplined capital investment, integrated operations and scale

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and our strategy is to deliver cash flow growth through the cycle, and competitive returns.

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And all of this is of course underpinned by an unrelenting focus on safety.

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We’ve achieved a lot in the last few years and Shell has considerable strengths in portfolio,

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technology and management capabilities.

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This is an ambitious company, with plans for further growth.

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However, our 2013 results underlined the need to shift the emphasis in 2014.

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We’ve laid out an agenda for 2014 and beyond for a better financial performance in particular

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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

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and improve our returns.

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In Upstream Americas, let me highlight that we are seeing good profitability and growth potential

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in both deep-water and heavy oil, for example with the start up of the Mars B field recently in the Gulf.

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The resources plays positions, such as shales, are in a loss and we have restructuring programmes

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underway there, including asset sales and a 20% spending reduction.

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In Downstream, businesses like chemicals and biofuels are actually performing well,

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but there is a large range of performance in refining high and low returns and we need to

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improve right across the portfolio.

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Overall, we are taking stock, all the way through our development and production pipeline

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and are challenging ourselves if our assets are attractive economically,

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and are they resilient to industry cycles?

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Are our plans for new projects credible, are they competitive and are they affordable?

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In this way, we aim to continue to balance cash flow growth with improved returns,

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to add value for our shareholders.

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Thank you.