Key operational milestones in 2012:
- We continued to focus on safe and reliable operations in all of our activities.
- Cash flow from operations (CFFO) of $46 billion, net capital investment of $30 billion, dividends announced of $11 billion.
- New start-ups in 2010-12 added $ 6 billion of cash flow and 600 thousand barrels of oil equivalent per day (boe/d) of production in 2012, around 10% and 20% of the company's totals. There is more growth to come from these assets.
- Exploration, appraisal and commercial activities in 2012 added ~4 billion barrels of oil equivalent (boe) of potential new resources, comprising 1.5 billion boe in conventional basins, and 2.5 billion boe in resources plays, underpinning Shell's longer-term growth plans.
- Rigorous portfolio management continues, with $7 billion of exits from non-core positions and strategic partnering, and $5 billion in acquisitions in 2012. Divestments in the last 3 years totalled $21 billion, or around 10% of capital employed, and acquisitions were $17 billion.
1. Cash Flow From Operations (CFFO) and net capital spending outlook at $80-$100/bbl Brent, and assumes improved US gas and downstream environment from 2012. CFFO excludes working capital movements.
Outlook for 2013 and beyondVoser said Shell will continue the strategic drive to grow its upstream businesses, with ongoing selective investment in downstream. At the end of 2012, the company had 12.4 billion boe of resources on stream, averaging 3.4 million boe/d of production, and 20 billion boe of resources potential in our active development funnel. Total resources in these two categories represent 26 years of current production. Shell has ~30 new projects under construction, which should unlock 7 billion barrels of resources, and drive continued financial and production growth. Upstream start-ups in 2010-15 are expected to add some $15 billion of cash flow in 2015, in a $100 oil price scenario. Some 50% of our 2013 capital investment will contribute to cash flow by 2015. Oil & gas production is expected to average ~4 million boe/d in 2017-2018 compared to 3.3 million boe/d in 2012. Shell's strategy in upstream is designed to drive financial growth, irrespective of production entitlement, with production growth regarded as a long term proxy for financial growth.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV