Royal Dutch Shell Plc said it plans to invest between $7 billion and $9 billion a year across downstream operations and deliver a return on average capital employed (ROACE) above 15 per cent.
Shell’s management stated this yesterday in London when it updated investors on its downstream growth ambitions and the important role such ambitions will play in delivering the oil major’s world-class investment case.
It reiterated its expectation of between $6billion and $7 billion annual organic free cash flow from downstream by 2020, at $60 per barrel (real terms 2016) and mid-cycle downstream conditions, with $9-12 billion expected by 2025.
The investment case will be delivered through a uniquely integrated approach, the company explained.
“A customer-centric mindset and business integration are fundamental to our approach. Shell’s downstream leadership position is based on the unrivalled strength of customer relationships across retail, global commercial and chemicals, built over decades. The integrated management of our businesses and the unique reach of our trading operation allows us to capture and maximise value across the value chain as market conditions change, enhancing the resilience of our business.
Across its marketing businesses, Shell is leveraging its iconic global brand and technically differentiated fuels and lubricants, while growing in new markets and sectors that will be resilient through the energy transition,” it added.