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Presentation 1
Royal Dutch Shell
Section D
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History
Royal Dutch Petroleum CompanyFounded in 1890, after licensed by King William III of the Netherlands to
work on petroleum wells in The Dutch East Indies
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Shell Transportation and Trading CompanyAntique business importing and selling sea shells, founded in 1897 in London
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Royal Dutch Shell GroupCreated in February 1907
Merger was largely driven by the need to compete globally
Ownership ratio between the Netherlands and Britain 60:40
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Introduction
HQ: Netherlands, Registered office: London
Largest company in the world in the Oil & Gas industry, 1 of 6
“Supermajors”
Royal Dutch Shell’s revenue was equivalent to 84% of Netherland’s
GDP in 2013, valuing USD 555.8 Billion
Dynamic in all area of Oil & Gas Industry
Exploration Production Refining
Distribution & marketing Petrochemicals Power generation
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Introduction (Continued)
90 countries, 44,000 service stations, 92,000 employees
3.1 million barrels of oil equivalent produced per day
Topped the 2013 Fortune global Top 500 list
2014: Second in terms of revenue in the Financial Times list
Ventured into renewable energy resource market recently
Biofuel Wind Natural Gas
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4
World War I Period (1914-1918)
Main supplier to the British Expeditionary Force
Sole supplier of aviation fuel
Supplied 80% of British Army’s TNT
Volunteered all it’s shipping to British Admiralty
Inter-war Period
(1919-1939)
1920: Leading oil company
globally
11% of the world’s crude oil
supplier
Owned 10% of tanker tonnage
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Inter-war Period (1919-1939)
“You cannot carry on a war without oil. The capital of the Netherlands
East Indies is Britain and America, and the Dutch Government-in-exile
has fled to England; so I think it will be impossible to obtain oil... by
peaceful means.”
- Hara Yoshimichi, President of the Privy Council, Japan
“This all shows that the Netherlands East Indies are slowly but
certainly becoming an object which must be taken into account
in world affairs. The Netherlands East Indies, 25 years ago a
friendly corner in the Pacific, are now a card in the game of which
note must be taken.”
- Bataviaasche Nieuwsblad (Dutch colonial newspaper) on 28th
November, 1936
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World War II (1939-1945)
Shell Chemical Company specifically manufactured Butadienefor synthetic rubber
Used in military truck tyres
Continued production and supply of aviation fuel to Britain
Under then Chairman Henry Deterding, pro-Nazi stance wastaken by Royal Dutch Shell
Massive financial support by Fascist Deterding to Adolf Hitler
After his death in 1939 during combat the company was Pro-Allies
Lost 87 Shell ships in enemy action
Lost £90 million due to their “Scrotched Earth” protocol
Origin of “You can be sure of Shell” tagline to rebuild confidence
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Organization Hierarchy
Board of Directors
Chairman of the Board &
Managing Director
Vice Chairman of the Board
Deputy Managing Directors
Strategic corporate planning &
development
Administration and Human Resources
Finance MarketingRefinery
Manufacturing
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Jorma OllilaChairman of
the Board
2006
Ben van
BeurdenChief Executive
Officer
2014
Simon HenryChief Financial
Officer
2009
Matthias
BichselProjects&
Technology
Director
2009
John AbbottDownstream
Director
2013Hugh MitchellChief Human
Resources &
Corporate
Officer
2009
Andrew
BrownUpstream
Director
2012
Curre
nt E
xecutiv
e B
oard
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9
Products
Shell Bitumen
Cost effective and
sustainable solutions
Shell LPG
Dimethylether (DME) main
constituent
Shell Marine Products
Specialized lubricants for air
compressor, axles, bearings
Grease
Card services
Shell Fuel Card for Businesses
Shell Credit Card
Fuels
Shell Nitrogen Enriched fuel
V-Power fuel
Oil and Lubricants
For cars and bikes
Heavy-duty vehicles
Shell Chemicals
Petrochemicals used in plastics,
rubbers, fibers, foams
Further used in textile, paints, mattress
industries
Shell Aviation
Fuel and lubricants
Turbine and Piston Engine oil11
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Competitors
Exxon Mobil
Revenue: $428.3 billion
Daily production: 6.4 million
barrels
Reserves: 13.6 billion barrels
of Oil Equivalent
Chevron Corp.
Revenue: $222.5 billion
Daily production: 2.6 million
barrels
Reserves: 11.3 billion barrels
of Oil Equivalent
British Petroleum
Revenue: $375.5 billion
Reserves: 18.1 billion
barrels of Oil Equivalent
Daily production: 4.1 million
barrels
Total SA
Revenue: $237.0 billion
Daily production: 3.4 million
barrels
Reserves:
11.5 billion barrels of Oil Equivalent
Royal Dutch Shell
Revenue: $451.2 billion
Daily production: 3.1 million
barrels
Reserves: 13.6 billion barrels
of Oil Equivalent
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Corporate Social Responsibility
Shell Foundation, established in 2000
Initial endowment from Shell group: $250 million
Annual donations: $15 million
Voluntary social investment globally: $159 million
CSR programs include:
Aspire:
Program for SMEs in Africa
Assistance and Business
Capital
Excelerate:
Modern energy services to the
poor
India and Bangladesh
GACC:
Global Alliance for Clean Cookstoves
$6 million in 3 years
Tackle harmful smoke caused by open
fires or inefficient stoves13
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Financial Data & Endorsements
Total revenue: $451.2 billion
Operating income: $26.87 billion
Profit: $16.38 billion
Total asset: $357.51 billion
Total equity: $180.04 billion
Current stock price (London Stock
Exchange): £2403.5
Sponsors of F1 racing Ferrari
team and cars, since 1970
Belgian Grand Prix title sponsor
Title sponsors for Asia Talent Cup
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References
Clee, DJ. “Royal Dutch – Shell: 1919-1946” [Slide 5,6,7]
http://en.wikipedia.org/wiki/Royal_Dutch_Shell [Slide 2,3,4,11,13]
www.shell.com [Slide 10,12]
http://royaldutchshellplc.com/2011/03/31/you-can-be-sure-of-shell-
the-biggest-confidence-trick-in-history/ [Slide 7]
http://www.reuters.com/finance/stocks/companyOfficers?symbol=R
DSb.L&WTmodLOC=C4-Officers-5 [Slide 8,9]
http://www.londonstockexchange.com/exchange/prices-and-
markets/stocks/prices-search/stock-prices-
search.html?nameCode=RDSA [Slide 13]
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Presentation 2
Royal Dutch Shell
Section D
Recapitulation
Royal Dutch Petroleum Company + Shell Transportation and Trading
Company = Royal Dutch Shell Group (1907)
One of six “Supermajors”
Shell during World War I, Interwar Period & World War II: Advent of You can
trust Shell
Organizational Hierarchy: Global and Regional
Current Executive Board
Shell’s major product offerings
Competitors: Exxon Mobil, Chevron Corp., British Petroleum and Total SA
Corporate Social Responsibility Initiatives
Financial Data
Endorsements
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1
The world’s largest industry in terms of dollar value
Includes global processes of: exploration, extraction, refining, transporting,
marketing and retailing of petroleum products
Divided into 3 major operational strata: Upstream, Midstream and Downstream
World consumes 30 billion barrels (4.8 km³) of oil annually
Oil accounts for a large percentage of the world’s energy consumption: low of 32%
(Europe and Asia), high of 53% (Middle East)
“Supermajor” companies oil produce <15% of total world supply
National oil companies control >80% of the world's reserves of oil and natural gas
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The Petroleum Industry
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The Petroleum Industry
Country wise Oil Production in the decade between 1960 to 2006
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20
Global “Cartels” & Shell’s Region-wise Revenue
4
Competitors’ Operational Analysis (2013)
Exxon Mobil
Downstream:
206,794m
GBP
Upstream:
23,567m
GBP
Corporate:
126m
GBP
Chevron Corp.
Downstream:
111,999m
GBP
Upstream:
15,481m
GBP
Corporate:
217m
GBP
British Petroleum
Downstream:
224,011m
GBP
Corporate:
600.73m
GBP
Upstream:
17,943m
GBP
Sinopec
Downstream:
128,799m
GBP
Upstream:
23,741m
GBP
Corporate:
133.46m
GBP
Royal Dutch Shell
Downstream:
258,286m
GBP
Upstream:
30,297m
GBP
Corporate:
97.88m
GBP21
5
Company Percentage Valuation (USD)
Shell Oman Marketing 100.0% 13,636,350
Shell Pakistan Ltd. (SHEL) 76.1% 230,591,556
Hankook Shell Oil Co. Ltd. 53.8% 348,007,975
Shell Refining Company (FOM) Berhad 51.0% 263,297,700
Shell Oman Marketing Company SAOG 46.1% 238,909,290
Showa Shell Sekiyu KK 35.8% 1,501,054,181
Companhia de Gas de Sao Paulo-Comgas 22.8% 481,169,466
Codexis (CDXS) 14.4% 11,703,970
Chesapeake Energy Corp. 100.0% 20,000,000,00022
Shell’s Acquisitions & Holdings
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Name Percentage
Institutional Shareholders (999) 13.29%
Necigef Nederlands Centraal Inst Giraal Effectenverkeer BV 43.8%
BlackRock Investment Management (UK) Ltd. 3.54%
State Administration of Foreign Exchange 1.90%
The Vanguard Group, Inc. 1.41%
Scottish Widows Investment Partnership Ltd. 1.34%
Legal & General Investment Management Ltd. 1.34%
State Street Global Advisors Ltd. 1.01%
BlackRock Fund Advisors 0.84%
SSgA Funds Management, Inc. 0.83%
Franklin Mutual Advisers LLC 0.80%
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Who Owns Shell?
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Shell: The Last 4 Years2013 (in mill
USD)
2012 (in mill
USD)
2011 (in mill
USD)
2010 (in mill
USD)
Total revenue 451,235.00 467,153.00 470,171.00 368,056.00
Operating
Income26,870.00 37,722.00 42,598.00 32,197.00
R&D 6,596.00 4,411.00 3,389.00 3,055.00
Gross Profit 69,650.00 71,213.00 73,574.00 84,880.00
Possible reasons for drastic drop in Revenue in
2012-13:
Political turmoil in the oil-producing Middle
East
Particularly in Syria, Egypt, Lebanon (Gulf
nations)
Highly price sensitive industry
Affected all major players similarly: “trend”
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Shell In India
Largest international investor in India’s energy
sector: Invested US$1billion
1928: Burmah-Shell Oil Storage and Distributing
Company of India Ltd. Import and Marketing of
kerosene
1932, 15th Oct: Civil aviation arrived in India –
Shell fueled J.R.D. Tata’s solo flight from
Karachi to Mumbai
1950s: Introduced LPG as cooking fuel to Indian
homes
Shell Lubricants became 100% subsidiary of
Royal Dutch Shell by acquiring minority stake of
Bharat Petroleum
Corporate Office: Gurgaon; 6 regional offices
2000 fuel retail stations, 250 distributors, 400
board members
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Analysis of Safety Measures
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References
Shell Analyst Management Day London [Slide 10]
http://www.shell.com/ind/aboutshell/shell-businesses/india-business-structure/lubes-
india.html [Slide 9]
http://www.nasdaq.com/symbol/rds.a/ownership-summary#ixzz3BnDRtYlr [Slide 7]
http://www.4-traders.com/ROYAL-DUTCH-SHELL-PLC-4005177/company/ [Slide 4,7]
http://www.4-traders.com/EXXON-MOBIL-CORPORATION-4822/company/ [Slide 5]
https://www.google.com/finance?q=NYSE%3ARDS.B&fstype=ii&ei=3e4AVKDyDsO9lAWUtIDYDQ
[Slide 8]
http://en.wikipedia.org/wiki/Petroleum_industry [Slide 2,3]
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Presented by:
Naima Haque (2014169)
Nikunj Gulati (2014179)
Pankhuri Kasera (2014189)
Pragna Kunda (2014199)
Pulkit Agarwal (2014209)
Rakesh Choudhary (2014220)
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