First quarter 2012 results webcastsRoyal Dutch Shell Chief Executive Officer Peter Voser commented:
“We are making good progress against our targets to deliver a more competitive performance. Our profits pay for Shell’s dividends and substantial investments in new energy projects, to ensure affordable, reliable energy supplies for our customers, which create value for our shareholders.
Shell’s first quarter 2012 earnings increased from year-ago levels, through a combination of improved operating performance, increased upstream volumes and strong oil prices. Energy demand fundamentals are robust, but with near-term volatility in energy prices as a result of economic and political events. In downstream and North American natural gas we see continued challenges for our industry.”
“We are implementing our strategy by improving near-term performance, delivering a new wave of production growth and maturing the next generation of growth options for shareholders. Shell sold $2.4 billion of upstream and downstream positions during the quarter, enhancing our financial flexibility and capital efficiency, and unlocking new growth potential. Asset sales for 2012 are likely to be over $4 billion, compared with our earlier guidance of $2-3 billion.”
“During the quarter, production commenced at the Caesar/Tonga project in the Gulf of Mexico and the Pluto LNG project in Australia reached ready-for-start-up status. These two non-operated positions are expected to add a total of some 40 thousand barrels of oil equivalent per day (“boe/d”) at peak for Shell and 0.9 million tonnes per annum (“mtpa”) of LNG capacity. The ramp-up of Shell’s flagship Pearl GTL project in Qatar continued during the quarter, and the project is on track to reach full capacity in the middle of 2012. In the last few weeks, crude oil processing commenced at the Port Arthur refinery expansion project, creating one of the largest refineries in the United States.”
“This is all part of a portfolio of 26 projects that Shell is developing worldwide today,” Voser continued. “This industry-leading project line-up, combined with a focus on innovation and competitive performance across the company, will drive Shell to the clear targets we have set out for shareholders, namely around $175-200 billion of cash flow from operations in total for 2012-15, and a production potential of some 4 million boe/d in 2017-18.”(1)
Voser added: “We continue to mature new investment options for medium-term growth, including new exploration acreage and positive results from the on-going appraisal of the Appomattox oil discovery in the Gulf of Mexico, where we see scope for some 500 million boe of resources with further upside potential. I am also very pleased to welcome new strategic partners into Shell’s Prelude Floating LNG project in Australia, as we continue to develop new international natural gas resources and markets.”
“The resumption of measured, affordable dividend growth we have confirmed today reflects the improving financial position of the company and delivery of our strategy,” concluded Voser.
