Shell CEO Quotes on Company’s $25b investment plan for next 3 yearsShell CEO Quotes on Company’s $25b investment plan for next 3 years

Shell CEO Quotes on Company’s $25b investment plan for next 3 years

The Royal Dutch Shell Plc is to invest about $25 billion in several projects across its worldwide operations in 2017, and will sustain such investments for the next 3 years - Ben van Beurden, Shell CEO

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Quotes from Shell CEO on Company’s $25b investment plan for next 3 years

The Royal Dutch Shell Plc is to invest about $25 billion in several projects across its worldwide operations in 2017, and will sustain such investments for the next 3 years – Ben van Beurden, Shell CEO
The above was said by the Oil Giant’s CEO at the company’s announcement of its 2016 fourth quarter and full year financial results.
“Looking ahead, we will further focus the portfolio and strengthen the company’s financial framework in 2017. Our strategy is starting to pay off and in 2017 we will be investing around $25 billion in high quality, resilient projects. I’m confident 2017 will be another year of progress for Shell to become a world-class investment.” – Ben van Beurden, Shell CEO
He stressed that earnings were affected by charges of $0.5 billion related to deferred tax reassessments that were not included as identified items, adding that operating expenses were less, more than offsetting the impact of the consolidation of BG.

  • Depreciation and net interest expense rose due mainly to the BG acquisition. Earnings also reflected higher taxation
  • Full year 2016 CCS earnings attributable to shareholders excluding identified items were $7.2 billion compared with $11.4 billion in 2015.
  • Fourth quarter 2016 CCS earnings attributable to shareholders excluding identified items were $1.8 billion compared with $1.6 billion for the fourth quarter 2015, an increase of 14 per cent.

“We are reshaping Shell and delivered a good cash flow performance this quarter with over $9 billion in cash flow from operations. Debt has been reduced and, for the second consecutive quarter, free cash flow more than covered our cash dividend.”– Ben van Beurden, Shell CEO


Production and LNG volumes included delivery from new projects, with ramp-up continuing in 2017 and 2018. Meanwhile, we are operating the company at an underlying cost level that is $10 billion lower than Shell and BG combined only 24 months ago. We are gaining momentum on divestments, with some $15 billion completed in 2016, announced, or in progress, and we are on track to complete our overall $30 billion divestment programme as planned
. – Ben van Beurden, Shell CEO

 

Shell CEO Key points on assets divestment

Asset sales have an important role to play in all of these strategic themes, as Shell is re-shaped. The asset sales programme is expected to total $30 billion for 2016 to 2018 combined.

  • Shell completed $5 billion large divestments in 2016, announced a further $5 billion and are making significant progress on more than $5 billion of other deals.
  • By 2016 ending, Shell had completed the sale of her shareholding in Showa Shell for around $1.4 billion.
  • They just announced that SABIC will buy Shell’s 50 per cent share in the SADAF petrochemicals joint venture for around $800 million.
  • Few days ago Shell also signed agreements to sell a package of UK North Sea assets to Chrysaor for a total of up to $3.8 billion
  • Shell also signed with Kufpec for the sale of her interest in the Bongkot field and adjoining acreage off-shore Thailand for $900 million.

“These transactions show the clear momentum behind Shell’s global, value-driven, $30 billion divestment programme and are consistent with the company’s strategy to high-grade and simplify its portfolio following the acquisition of BG. We seek to generate value, simplify the portfolio and reshape Shell.”  – Ben van Beurden, Shell CEO

This is a value driven -not a time –driven -divestment programme. We are confident that we will deliver. We’ve been reducing Shell’s capital investment in a steady and measured way over the last few years. We are planning to spend between $25 and $30 billion each year until 2020.”  – Ben van Beurden, Shell CEO

“This is a value driven -not a time –driven -divestment programme. We are confident that we will deliver. We’ve been reducing Shell’s capital investment in a steady and measured way over the last few years. We are planning to spend between $25 and $30 billion each year until 2020.” – Ben van Beurden, Shell CEO

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