Resilient financial results, with sector-leading cash generation. Net debt reduced by $4 billion to $75 billion during 2020.
▪Exceeded cash preservation targets set in March 2020:
Cash capex decisively reduced to $18 billion in 2020, from $24 billion in 2019, against a target of $20 billion or lower.
▪Underlying opex of $33 billion in 2020, down by $4 billion, from $37 billion in 2019, against a reduction target of $3 to $4 billion▪
The Hague, February 4, 2021
“2020 was an extraordinary year. We have taken tough but decisive actions and demonstrated highly resilient operational delivery while caring for our people, customers and communities. We are coming out of 2020 with a stronger balance sheet, ready to accelerate our strategy and make the future of energy. We are committed to our progressive dividend policy and expect to grow our US dollar dividend per share by around 4% as of the first quarter 2021.”Royal Dutch Shell Chief Executive Officer, Ben van Beurden
STRONG OPERATIONAL DELIVERY IN AN EXTRAORDINARY YEAR
LNG realised prices significantly below Q4 2019, with some recovery seen during the quarter.▪Average trading and optimisation results.Lower opex driven by lower operations and maintenance costs as well as underlying structural cost reductions.▪Strong cash conversion despite derivatives cash outflowQ4 2020 PORTFOLIO DEVELOPMENTS▪During the quarter, QGC Common Facilities Company Pty Ltd, a wholly-owned subsidiary of Shell, announced that it has agreed to the sale of a 26.25% interest in the Queensland Curtis LNG Common Facilities to Global Infrastructure Partners Australia for US$2.5 billion. The transaction is subject to regulatory approval in Australia and customary conditions and is expected to complete in the first half of 2021. ▪In January 2021, Shell completed the sale of its 30% interest in Oil Mining Lease 17 in the Eastern Niger Delta, and associated infrastructure, to TNOG Oil and Gas Limited, a related company of Heirs Holdings Limited and Transnational Corporation of Nigeria Plc, for a consideration of $533 million. A total of $453 million was paid by completion with the balance to be paid over an agreed period.
