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Royal Dutch Shell Management Discusses Q2 2012 Results - Earnings Call Transcript

Obviously, you know the drill in this one. Let me start with the overview, the global economy. Again the energy markets are likely to see continued high volatility. This is really an interplay between structural growth in energy demand and on the other side, some unprecedented geopolitical events, such as we see playing out in the Eurozone at the moment, Arab Spring comes to mind and the others.

Now this is a very complex landscape for us in the energy industry and in a highly interconnected world, therefore, we see a lot of opportunities for a global integrated company like Shell. We are on track for our cash flow targets of up to $200 billion for 2012 to '15, which as you know, is some 50% higher than the previous 4 years. And we're also on track for oil and gas production of some 4 million barrels of oil equivalent per day in 2017 and '18, the outcome of our investment decisions and financial targets.

Now this is an ambitious program and we have got lots to do. So let me, over the next few minutes, update on where we are with our progress on all of this. Our Q2 2012 CCS earnings, including -- excluding identified items, were $5.7 billion or $13 billion for the first half. Now in the second quarter, we had a lot of planned maintenance, actually, as some of it we have indicated, and we also had some timing issues on dividend payments, that together was roughly $500 million, which you need to take into account when you look at our clean earnings.

Now we are seeing the impact of the weaker economy in our results. We sold $4 billion of assets in the first 6 months of the year, as we improve Shell's capital efficiency from -- and we form strategic partnerships and upgrade the portfolio.

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