Research by :
Faisal Arfat NUML
Shell is a global group of energy and petrochemical companies. Our headquarters are in The Hague, the Netherlands, and our Chief Executive Officer is Peter Voser. The parent company of the Shell group is Royal Dutch Shell plc, which is incorporated in England and Wales.
In Upstream we focus on exploring for new oil and gas reserves and developing major projects where our technology and know-how adds value to the resource holders.
In Downstream our emphasis remains on sustained cash generation from our existing assets and selective investments in growth markets.
In Downstream our emphasis remains on sustained cash generation from our existing assets and selective investments in growth markets.
Shell at a glance
Our businesses
Upstream explores for and extracts crude oil and natural gas.
Downstream refines, supplies, trades and ships crude worldwide, manufactures and markets a range of products, and produces petrochemicals for industrial customers.
Projects & Technology manages delivery of Shell's major projects and drives the research and innovation to create technology solutions.
Downstream refines, supplies, trades and ships crude worldwide, manufactures and markets a range of products, and produces petrochemicals for industrial customers.
Projects & Technology manages delivery of Shell's major projects and drives the research and innovation to create technology solutions.
2011
• Revenue: $470.2 billion
• Income: $31.2 billion
• Capital investment: $31.1 billion
• Investment in research and development: $1.1 billion
• Revenue: $470.2 billion
• Income: $31.2 billion
• Capital investment: $31.1 billion
• Investment in research and development: $1.1 billion
Fast facts for sustainable development
• $2.3 billion spent on developing alternative energies, carbon capture and storage, and on CO2R&D over the past five years.
• Almost $12 billion spent on goods and services in 2011 from companies in countries with lower incomes.
• ~$125 million spent on voluntary social investments in 2011.
• Almost $12 billion spent on goods and services in 2011 from companies in countries with lower incomes.
• ~$125 million spent on voluntary social investments in 2011.
3RD QUARTER 2012 UNAUDITED RESULTS
• Royal Dutch Shell's third quarter 2012 earnings, on a current cost of supplies (CCS)
basis , were $6.1 billion compared with$7.2 billion in the same quarter a year ago.
• Third quarter 2012 CCS earnings, excluding identified items were $6.6
billion compared with $7.0 billion in the third quarter 2011, a decrease of 6%. Basic CCS
earnings per share excluding identified items decreased by 6% versus the same quarter a year ago.
• Cash flow from operating activities for the third quarter 2012 was $9.5 billion. Cash flow from operating activities excluding movements in working capital was $11.7 billion in the third quarter 2012.
• Net capital investment (see Note 1) for the third quarter 2012 was $8.0 billion. Capital investment for the third quarter 2012 was some $8.8 billion and proceeds from divestments were $0.8 billion.
• Total dividends distributed in the quarter were $2.8 billion, of which some $0.8 billion
were settled under the Scrip Dividend Programme. During the third quarter 4.3 million
shares were bought back for cancellation for a consideration of some $0.1 billion.
• Gearing at the end of the third quarter 2012 was 8.6%.
• A third quarter 2012 dividend has been announced of $0.43 per ordinary share and $0.86
per American Depository Share (ADS), an increase of2.4% compared with the third
quarter 2011.
Who we are
Shell is a global group of energy and petrochemical companies. Our aim is to meet the energy needs of society, in ways that are economically, socially and environmentally viable, now and in the future.
Our businesses
Upstream explores for and extracts crude oil and natural gas.
Downstream refines, supplies, trades and ships crude worldwide, manufactures and markets a range of products, and produces petrochemicals for industrial customers.
Projects & Technology manages delivery of Shell's major projects and drives the research and innovation to create technology solutions.
Downstream refines, supplies, trades and ships crude worldwide, manufactures and markets a range of products, and produces petrochemicals for industrial customers.
Projects & Technology manages delivery of Shell's major projects and drives the research and innovation to create technology solutions.
Our strategy
Our strategy to generate profitable growth remains to drive forward with our investment programme, to deliver sustainable growth and provide competitive returns to shareholders, while helping to meet global energy demand in a responsible way.
THE BOARD OF ROYAL DUTCH SHELL PLC
Jorma Ollila CHAIRMAN
Lord Kerr of Kinlochard DEPUTY CHAIRMAN AND SENIOR INDEPENDENT DIRECTOR
Peter Voser CHIEF EXECUTIVE OFFICER
Simon Henry CHIEF FINANCIAL OFFICER
Malcolm Brinded CBE EXECUTIVE DIRECTOR,
UPSTREAM INTERNATIONAL
Josef Ackermann NON-EXECUTIVE DIRECTOR
Member of the Remuneration Committee
Guy Elliott NON-EXECUTIVE DIRECTOR
Chairman of the Audit Committee
Charles O. Holliday NON-EXECUTIVE DIRECTOR
Chairman of the Corporate and Social Responsibility Committee and Member of
the Remuneration Committee.
Gerard Kleisterlee NON-EXECUTIVE DIRECTOR
Member of the Audit Committee
Linda G. Stuntz NON-EXECUTIVE DIRECTOR
Member of the Audit Committee
Jeroen van der Veer NON-EXECUTIVE DIRECTOR
Member of the Corporate and Social Responsibility Committee
Hans Wijers NON-EXECUTIVE DIRECTOR
Chairman of the Remuneration Committee and Member of the Nomination and
Succession Committee
Nomination and Succession Committee
Jorma Ollila (Chairman)
Josef Ackermann
Hans Wijers
Remuneration Committee
Hans Wijers (Chairman)
Josef Ackermann
Charles O. Holliday
SENIOR MANAGEMENT
Matthias Bichsel PROJECTS & TECHNOLOGY DIRECTOR
Hugh Mitchell CHIEF HUMAN RESOURCES & CORPORATE OFFICER
Marvin Odum UPSTREAM AMERICAS DIRECTOR
Peter Rees QC LEGAL DIRECTOR
Mark Williams DOWNSTREAM DIRECTOR
CORPORATE GOVERNANCE
Statement of Compliance
The Board confirms that throughout the year the Company has applied the main principles and complied with the relevant provisions set out in the UK Corporate Governance Code (the Code). In addition to complying with applicable corporate governance requirements in the UK, the Company must follow therules of Euronext Amsterdam as well as the Dutch securities laws because of its listing on this exchange. The Company must likewisefollow US securities laws and the New York Stock Exchange (NYSE) rules and regulations because its securities are registered in the USA and listed on the NYSE.
NYSE governance standards
In accordance with the NYSE rules for foreign private issuers, the Company follows home-country practice in relation to corporate governance. However, foreign private issuers are required to have an audit committee that satisfies the requirements of the U.S. Securities and Exchange Commission's Rule 10A-3. The Company's Audit Committee satisfiessuch requirements. TheNYSE also requires a foreign private issuer to provide certain written affirmations and notices to the NYSE as well as a summary of the ways in which its corporate governance practices differ significantly from those followed by domestic US companies under NYSE listing standards. The Company's summary of its corporate governance differences is given below and can befound at www.shell.com/investor.
NON-EXECUTIVE DIRECTOR INDEPENDENCE
The Board follows the provisions of the Code in respect of Non-executive Director independence, which states that at least half the Board, excluding the Chairman, should comprise Non-executive Directors determined by the Boardto be independent. In the case of the Company, the Board has determined thata majority of Non-executive Directors are wholly independent (see pages 80-81) for more information).
NOMINATING/CORPORATE GOVERNANCE COMMITTEE AND COMPENSATION COMMITTEE
The NYSE listing standards require that a listed company maintain a nominating/corporate governance committee and a compensation committee, both composed entirely of independent directors andwith certain specificresponsibilities. The Company's Nomination and Succession Committee and Remuneration Committee, respectively, comply with these requirements, except that the terms of reference of the Nomination and Succession Committee require only a majority of the committee members tobe independent.
AUDIT COMMITTEE
As required by NYSE listing standards, the Company maintains an Audit Committee for the purpose of assisting the Board's oversight of the financial statements, its internal audit function and its independent auditors. The Company's Audit Committee is in full compliance with the U.S. Securities and Exchange Commission's Rule 10A-3 and Section 303A.06 of the NYSE Listed Company Manual. However, in accordance with English law, the Company's Audit Committee makes recommendations to the Board for it to put to shareholders for approval in General Meeting regarding the appointment, reappointment and removal of independent auditors. Consequently, the Company's Audit
CODE OF ETHICS
The NYSE listing standards require that listed companies adopt a code of business conduct and ethics for all directors, officers and employees and promptly disclose any waivers of the code for directors or executive officers. The Company has adopted the Shell General Business Principles (see below), which satisfy the NYSE requirements. The Company also has internal procedures in place by which any employee can raisein confidence accounting, internal accounting controls and auditing concerns. Additionally, any employee can report irregularities to management through a worldwide dedicated telephone line and website without jeopardizing his or her position.
Environment
Advanced technology, new ways of operating and partnerships are helping to manage our environmental impact as we contribute to meeting the world's growing energy needs.
Energy demand is set to double by 2050 but CO2 emissions must fall to avoid serious climate change.
Shell and biodiversity
Protecting biodiversity is an important factor when we consider any new major project or large expansion to existing operations. Our approach to biodiversity is an integrated part of the way we operate. It builds on the industry-first standard we set in 2001 and now incorporate in our biodiversity manual.
The growing human population using more resources is leading to an unprecedented decline in animal and plant species – for example, more than 17,000 plants and species were officially listed as endangered in 2008 compared to around 11,000 in 2000. Twenty percent of tropical forests and 50% of global wetlands have been destroyed in the past 50 years.
Product stewardship
We take a responsible approach to our products, from development and production to transport, sale, use and disposal. Product stewardship for us includes working at each stage in a product's life cycle to keep it safe for people and the environment.
Shell and fresh water
The energy sector, like others, is becoming increasingly concerned about water use as water becomes scarcer globally. New approaches and advanced technologies are helping us to reduce the amount of water we need for our operations.
Air emissions
The production and use of fossil fuels can cause local air pollution. We work to reduce the emissions of pollutants from our operations and help customers reduce theirs by offering cleaner transport fuels and lubricants, and cleaner fuels and technologies for electricity generation.
Society
We supply energy, which helps support economic growth and development. At our operations we try to address social concerns and work to benefit local communities, to protect our reputation and support our business.
Safety
Safety is always our top priority. We aim to have zero fatalities and no incidents that harm people, or put our neighbours or facilities at risk.
Products & Services
We provide transport fuel to around 10 million customers each day through our 44,000 service stations worldwide. We are working to deliver cleaner burning and more efficient fuels. Our products and services are also designed to meet the needs of businesses - from the construction industry to aviation, chemicals to shipping.
Our cards offer customers rewards on Shell purchases and provide an efficient, secure way to buy fuel and other goods.
Shell's differentiated fuels have been launched in more than 40 countries to meet the individual needs of its customers.
Shell provides you with a full range of cars, bikes and heavy-duty truck oils.
Use our station locators to find Shell stations around the world. You can even search for particular products and services such as a car wash, ATM, Select stores or fuels.
Download the new Shell Motorist app to help make driving easier and to find out more about our products.
Supplying products and related services to the aviation industry in more than 90 countries.
Shell Bitumen provides sustainable and cost-effective bitumen solutions for professional, trade and home-based needs.
From makers of detergents to packaging, from carpets to computers, many of the world's leading companies depend on Shell Chemicals to deliver essential materials to support a modern world.
Supplying transport, heating and industrial fuels to corporate and distributing companies in many industries across the world, including road transport, mining, construction, power and agriculture.
Shell Global Solutions provides cutting-edge consultancy and technology services to petrochemical and processing industries.
We provide expert advice and support through our lubricant-related services to help you improve your business performance.
We select suppliers for their expertise in a range of areas and build strong relationships, helping us to gain competitive advantage.
Shell Marine Products is a global sales and marketing business supplying specialised fuels, lubricants and technical support services to the marine industry.
Shell Sulphur Solutions is establishing sulphur as a positive asset contributing to a better world, by taking sulphur out where it does not add value, and adding it to where it does.
Shell Trading companies are trading crude oil and handle the bulk sale and purchase of many other products such as natural gas, liquefied petroleum gas, jet fuel, different types of chemical feedstock, gasoline, electricity and biofuels.
Everything you need to know about our technical partnership with Ducati.
Everything you need to know about our technical partnership with Ferrari.
SWOT Analysis:
Strengths:
Technology
R&D (future concerns)
Highly diversified portfolio
Weakness:
Financial transparency
Less Promotional activities
Opportunities:
demographic favor products
demographic favor products
Retail Business Opportunities
passenger airline service
Banking sector (money mintors)
Threats:
Gloobal challenges: technical, logistical, political,
environmental and legal
Saturate market high competition
Reputational risk
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