Royal Dutch Shell plc fourth quarter 2014 results presentations

Title: Fourth Quarter 2014 Results

Duration: 2:51 minutes

Description:

Ben van Beurden CEO of Shell comments on the Q4 2014 results

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Shell logo

 

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Fourth Quarter 2014 Results

Balancing Growth & Returns

29th January 2015

Royal Dutch Shell plc

 

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Shell worker in a harness climbing some stairs in working environment.

 

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Ben van Beurden’s head and shoulders.

 

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Ben van Beurden

CEO Royal Dutch Shell

[Ben van Beurden]

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

Today we updated on our financial results and the priorities for 2015. Let me give you the highlights.

We set out an agenda in 2014 to balance growth and returns in Shell and our results in 2014 show that this strategy is impactful where it matters: at the bottom line.

 

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Still of oil rig, right-hand third of the screen is then split off vertically  to show two industry images one after the other.

 

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Successfully delivering

Strong project delivery

 

[Ben van Beurden]

By successfully delivering against our three key priorities of better financial performance, enhanced capital efficiency and continued strong project delivery, we are improving Shell's competitive position in the oil & gas industry.

 

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Still of three Shell employees wearing red boiler suits and hard hats, working together on pipes. Middle of the screen is then replaced by a still image of an oil refinery at night. Right-hand side of screen replaced by still image of close-up night time shot of oil refinery, left-hand side of screen replaced by still image of night time close-up of another section of the refinery. Head and shoulders of Ben van Beurden.

 

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Full year 2014 CCS earnings

$22 billion

 

[Ben van Beurden]

On our 2014 results.

Full year 2014 earnings on a current cost of supplies basis and excluding identified items were $22 billion.

We reported higher full year earnings for both Upstream and Downstream. 

Cash flow from operations was $45 billion for the year and we delivered $25 billion of free cash flow, which underpinned $15 billion of dividends and share buybacks.

So our strategy is delivering, but we are not complacent.  Weaker oil prices underline that there is more to do here. 

The three themes of financial performance, capital efficiency and project delivery will remain as Shell's priorities in 2015.

 

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Cash flow from operations: $45 billion

 

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$15 billion of dividends and share buybacks

 

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Financial performance, capital efficiency & project delivery

Shell priorities 2015

 

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Screen divided into still shots of old refinery/Shell petrol station.

 

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North America resources plays

 

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New restructuring programmes

 

[Ben van Beurden]

In 2015 this will include a continued drive to improve performance in Oil Products and North America resources plays with new restructuring programmes in Upstream engines and International resources plays.

 

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Still image of rainbow over oil and gas works. Screen then split horizontally and top half replaced by shot of oil rig. Head and shoulders of Ben van Beurden.

[Ben van Beurden]

Today's lower oil prices create multi-billion dollar opportunities to reduce our own costs and take out costs of the supply chain.

We are taking a prudent approach here and we must be careful not to over-react to the recent fall in oil prices.

We plan to cap our organic 2015 spending at 2014 levels, retain flexibility for both opportunistic, incremental plays, and to further reduce spending should market conditions warrant that step.

The agenda we set in 2014 to balance growth and returns positioned us well for the current oil market downturn.

 However, lower oil prices and the impact of our 2014 divestments will likely reduce this year's cash flow.

Shell is taking the tough decisions here to balance growth and returns.

Thank you.

 

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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, as 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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Shell logo in top right-hand corner

 

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Definitions & cautionary note

 

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Shell logo

Copyright, Shell International Limited 2015

 

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