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Released February 06, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) outperformed many of its peers last year, as improved refining and higher production from its new fields complemented the stronger oil, gas and liquefied natural gas (LNG) prices seen across the Oil & Gas Industry. Shell also offloaded many of its less profitable businesses, shifting focus to its better-performing assets. Industrial Info is tracking about $113 billion in active projects involving Shell, including more than $48 billion set to begin construction and more than $17 billion set to finish construction in 2018.
Capital expenditures, not including acquisitions, were reported to total $20.85 billion in 2017, down from $22.12 billion in 2016. Revenues for 2017 were reported to be $311.9 billion, a 30% increase from the previous year, while net income stood at $12.98 billion, compared with $4.58 billion in 2016.
Earlier this month, Shell announced it made a new discovery in the Alaminos Canyon portion of the Gulf of Mexico, about 200 miles southwest of Houston, Texas. Shell co-owns the drilling operation with Chevron Corporation (NYSE:CVX) (San Ramon, California). Shell already is building its $3.5 billion Appomattox Oil & Gas Production Platform in the Gulf, which is expected to produce 100,000 barrels per day (BBL/d) of crude oil, and is looking into the $4 billion Vito Platform, which is in an area that is estimated to have as much as 300 million barrels of oil equivalent. For more information, see Industrial Info's reports on the Appomattox and Vito projects.
Last month, Shell announced the final investment decision on the estimated $800 million redevelopment of the Penguins Field in the UK North Sea. Shell, which has a 50% interest in the field, is constructing a 45,000-BBL/d floating production storage and offloading (FPSO) unit to replace an existing platform. Shell's disposal of other, less profitable North Sea assets was a key part of more than $3.25 billion in upstream divestments during the fourth quarter. For more information, see Industrial Info's project report.
Shell's upstream business also lightened its load by divesting assets in Canada, Ireland, while the downstream business divested major assets in Saudi Arabia, Africa, Australia, and Hong Kong and Macau. Shell had considered divesting A/S Dansk Shell, which runs the Fredericia Refinery in Denmark, but decided in December to keep it. Industrial Info is tracking Shell's $4 million maintenance program at the Fredericia Refinery, which will cover four storage tanks as part of an annual tank farm repair program; see project report.
The downstream business also is home to one of Shell's most prominent projects for environmental safety: the $450 million greenhouse gas-reduction project at a refinery in Martinez, California. The project, which is intended to comply with California's Global Warming Solutions Act of 2006, involves shutting down the flexicoker unit and shifting from heavy to light crude feedstock, in order to reduce greenhouse gas emissions by 700,000 metric tons per year. For more information, see Industrial Info's project report.
"In downstream, availability for both chemicals and refining has been stronger than in 2016 despite the impact of Hurricane Harvey and a 1 month unplanned shutdown at [the Pernis Refinery] during the year," said Jessica Uhl, the chief financial officer of Shell, in an earnings-related conference call.
Shell is undergoing a $311.5 million deasphalting unit addition at its Pernis Refinery in Rotterdam, Netherlands. The 50,000-BBL/d unit is expected to increase diesel production and decrease heavy-fuel production for better flexibility. For more information, see Industrial Info's project report.
"Discipline, focus and capital efficiency have allowed us to maintain our investment levels at or below the $25 billion to $30 billion range," Uhl said. "We can now create more value for every $1 spent compared to a few years ago. We delivered $6 billion in capital efficiency over the period 2014 to 2017, and we're now working to deliver some $9 billion to $10 billion of further capital efficiency savings in the next few years."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Capital expenditures, not including acquisitions, were reported to total $20.85 billion in 2017, down from $22.12 billion in 2016. Revenues for 2017 were reported to be $311.9 billion, a 30% increase from the previous year, while net income stood at $12.98 billion, compared with $4.58 billion in 2016.
Earlier this month, Shell announced it made a new discovery in the Alaminos Canyon portion of the Gulf of Mexico, about 200 miles southwest of Houston, Texas. Shell co-owns the drilling operation with Chevron Corporation (NYSE:CVX) (San Ramon, California). Shell already is building its $3.5 billion Appomattox Oil & Gas Production Platform in the Gulf, which is expected to produce 100,000 barrels per day (BBL/d) of crude oil, and is looking into the $4 billion Vito Platform, which is in an area that is estimated to have as much as 300 million barrels of oil equivalent. For more information, see Industrial Info's reports on the Appomattox and Vito projects.
Last month, Shell announced the final investment decision on the estimated $800 million redevelopment of the Penguins Field in the UK North Sea. Shell, which has a 50% interest in the field, is constructing a 45,000-BBL/d floating production storage and offloading (FPSO) unit to replace an existing platform. Shell's disposal of other, less profitable North Sea assets was a key part of more than $3.25 billion in upstream divestments during the fourth quarter. For more information, see Industrial Info's project report.
Shell's upstream business also lightened its load by divesting assets in Canada, Ireland, while the downstream business divested major assets in Saudi Arabia, Africa, Australia, and Hong Kong and Macau. Shell had considered divesting A/S Dansk Shell, which runs the Fredericia Refinery in Denmark, but decided in December to keep it. Industrial Info is tracking Shell's $4 million maintenance program at the Fredericia Refinery, which will cover four storage tanks as part of an annual tank farm repair program; see project report.
The downstream business also is home to one of Shell's most prominent projects for environmental safety: the $450 million greenhouse gas-reduction project at a refinery in Martinez, California. The project, which is intended to comply with California's Global Warming Solutions Act of 2006, involves shutting down the flexicoker unit and shifting from heavy to light crude feedstock, in order to reduce greenhouse gas emissions by 700,000 metric tons per year. For more information, see Industrial Info's project report.
"In downstream, availability for both chemicals and refining has been stronger than in 2016 despite the impact of Hurricane Harvey and a 1 month unplanned shutdown at [the Pernis Refinery] during the year," said Jessica Uhl, the chief financial officer of Shell, in an earnings-related conference call.
Shell is undergoing a $311.5 million deasphalting unit addition at its Pernis Refinery in Rotterdam, Netherlands. The 50,000-BBL/d unit is expected to increase diesel production and decrease heavy-fuel production for better flexibility. For more information, see Industrial Info's project report.
"Discipline, focus and capital efficiency have allowed us to maintain our investment levels at or below the $25 billion to $30 billion range," Uhl said. "We can now create more value for every $1 spent compared to a few years ago. We delivered $6 billion in capital efficiency over the period 2014 to 2017, and we're now working to deliver some $9 billion to $10 billion of further capital efficiency savings in the next few years."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
