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Hello, I am Peter Voser, the CEO of Royal Dutch Shell.
Today we updated on our financial results and the delivery on our strategy and growth plans.
Let me give you the highlights.
With the first year of our 2012 to 2015 growth targets completed, Shell is on track
for plans we set out in early 2012, despite some headwinds last year.
Our targets are unchanged with cashflow in 2012 to 2015 to be 30% to 50% higher than
in the previous four years funding sustained investment for future growth and a
competitive dividend for shareholders.
Looking at the full year results for 2012
Earnings excluding identified items were broadly similar year-over-year, at $25 billion
and cash flow from operations increased by 25% to $46 billion.
Growth projects were a key driver of both earnings and cashflow
with some offsets from costs and exploration charges.
Our efforts to expand our pipeline of new energy projects are paying off.
Our drive to increase our options for future projects means that we are more constrained
by limits on capital than by limits on opportunities.
This allows us to prioritise the most
attractive opportunities and reconfigure or exit from less attractive ones.
New start-ups in 2010 to 2012 added $ 6 billion of cash flow and 600 thousand barrels
of oil equivalent per day of production in 2012.
There is more growth to come from these assets.
Now we have around 30 new projects under construction which should unlock 7 billion barrels of resources
and drive continued financial and production growth.
New start-ups in Upstream are expected
to add some $15 billion of cashflow in 2015 in our $100 per barrel price scenario and
some 50% of our 2013 capital investment will contribute to cash flow by 2015.
We are allocating capital to specific strategic themes and are executing a global
portfolio strategy.
Our growth priorities are clear.
We are maintaining strong positions in our base Upstream and Downstream businesses
we call them “engines”.
But we want more integrated gas, more deep water, and more resources plays such as shales.
Lastly, on payout Shell announced approximately $11 billion of dividends in 2012.
Shell has the largest dividend in our sector and the dividend reflects the confidence
that the management team and the board have in our future.
So there is more to come from Shell.
Thank you.