Stock Analysis on Net

Royal Dutch Shell PLC (NYSE:RDSA)

This company has been moved to the archive! The financial data has not been updated since March 12, 2015.

Analysis of Property, Plant and Equipment

Microsoft Excel

Property, Plant and Equipment Disclosure

Royal Dutch Shell PLC, balance sheet: property, plant and equipment

US$ in millions

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Exploration and production assets 264,647 267,282 231,722 203,416 192,397
Manufacturing, supply and distribution 75,681 76,624 67,460 65,412 65,908
Other 23,871 27,209 26,571 26,729 27,220
Property, plant and equipment, cost 364,199 371,115 325,753 295,557 285,525
Accumulated depreciation, depletion and amortisation, including impairments (171,727) (179,218) (153,460) (143,476) (142,820)
Property, plant and equipment, carrying amount 192,472 191,897 172,293 152,081 142,705

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Item Description The company
Property, plant and equipment, cost Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Royal Dutch Shell PLC property, plant and equipment, cost increased from 2012 to 2013 but then slightly decreased from 2013 to 2014.
Property, plant and equipment, carrying amount Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Royal Dutch Shell PLC property, plant and equipment, carrying amount increased from 2012 to 2013 and from 2013 to 2014.

Asset Age Ratios (Summary)

Royal Dutch Shell PLC, asset age ratios

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Average age ratio 47.15% 48.29% 47.11% 48.54% 50.02%
Estimated total useful life (years) 15 18 23 23 19
Estimated age, time elapsed since purchase (years) 7 9 11 11 9
Estimated remaining life (years) 8 9 12 12 9

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Royal Dutch Shell PLC average age ratio of depreciable property, plant and equipment deteriorated from 2012 to 2013 but then improved from 2013 to 2014 not reaching 2012 level.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Royal Dutch Shell PLC estimated total useful life of depreciable property, plant and equipment decreased from 2012 to 2013 and from 2013 to 2014.
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Royal Dutch Shell PLC estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2012 to 2013 and from 2013 to 2014.
Estimated remaining life Royal Dutch Shell PLC estimated remaining life of depreciable property, plant and equipment decreased from 2012 to 2013 and from 2013 to 2014.

Average Age

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in millions)
Accumulated depreciation, depletion and amortisation, including impairments 171,727 179,218 153,460 143,476 142,820
Property, plant and equipment, cost 364,199 371,115 325,753 295,557 285,525
Asset Age Ratio
Average age1 47.15% 48.29% 47.11% 48.54% 50.02%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Average age = 100 × Accumulated depreciation, depletion and amortisation, including impairments ÷ Property, plant and equipment, cost
= 100 × 171,727 ÷ 364,199 = 47.15%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient. Royal Dutch Shell PLC average age ratio of depreciable property, plant and equipment deteriorated from 2012 to 2013 but then improved from 2013 to 2014 not reaching 2012 level.

Estimated Total Useful Life

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in millions)
Property, plant and equipment, cost 364,199 371,115 325,753 295,557 285,525
Depreciation, depletion and amortisation, including impairments, charge for the year 23,835 21,083 14,240 12,847 15,114
Asset Age Ratio (Years)
Estimated total useful life1 15 18 23 23 19

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Estimated total useful life = Property, plant and equipment, cost ÷ Depreciation, depletion and amortisation, including impairments, charge for the year
= 364,199 ÷ 23,835 = 15

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors. Royal Dutch Shell PLC estimated total useful life of depreciable property, plant and equipment decreased from 2012 to 2013 and from 2013 to 2014.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in millions)
Accumulated depreciation, depletion and amortisation, including impairments 171,727 179,218 153,460 143,476 142,820
Depreciation, depletion and amortisation, including impairments, charge for the year 23,835 21,083 14,240 12,847 15,114
Asset Age Ratio (Years)
Time elapsed since purchase1 7 9 11 11 9

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Time elapsed since purchase = Accumulated depreciation, depletion and amortisation, including impairments ÷ Depreciation, depletion and amortisation, including impairments, charge for the year
= 171,727 ÷ 23,835 = 7

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company fixed assets. Useful for comparison purposes. Royal Dutch Shell PLC estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2012 to 2013 and from 2013 to 2014.

Estimated Remaining Life

Microsoft Excel
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in millions)
Property, plant and equipment, carrying amount 192,472 191,897 172,293 152,081 142,705
Depreciation, depletion and amortisation, including impairments, charge for the year 23,835 21,083 14,240 12,847 15,114
Asset Age Ratio (Years)
Estimated remaining life1 8 9 12 12 9

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Estimated remaining life = Property, plant and equipment, carrying amount ÷ Depreciation, depletion and amortisation, including impairments, charge for the year
= 192,472 ÷ 23,835 = 8

Asset age ratio Description The company
Estimated remaining life Royal Dutch Shell PLC estimated remaining life of depreciable property, plant and equipment decreased from 2012 to 2013 and from 2013 to 2014.