Wed, May 4, 8:58 AM
- Royal Dutch Shell (RDS.A, RDS.B) -1.9% premarket after saying it cut its 2016 spending plans by another 10% from the target set in February when it completed the acquisition of BG Group, and will cut even further if needed.
- In the first quarterly results since completing the BG deal, Shell reported better than expected Q1 earnings, as lower costs helped offset the impact of weaker oil and gas prices and an increase in operating expenses associated with BG.
- Shell now says it expects to spend $30B this year, cutting $3B from previous guidance as it cancels projects such as the sour gas project in Abu Dhabi, and sees full-year operating expenses for the combined company at $40B, down from $53B in 2014; the dividend is maintained at $0.47.
- The BG addition also helped raise the company's production volumes by 16% Y/Y in the quarter to 3.7M boe/day.
- Shell says its quarterly profit on a current cost-of-supplies basis totaled $1.55B, 58% below the 3.7B in the year-ago quarter but beating the $1.04B analyst consensus.
- Shell also warns that low oil and gas prices, significant maintenance at production sites as well as "substantial redundancy and restructuring charges" will impact Q2 earnings.
Wed, May 4, 5:57 AM
Wed, May 4, 3:42 AM
- Royal Dutch Shell's (RDS.A, RDS.B) CCS (Current Cost of Supplies) earnings per share, excluding identified items, decreased 63% to $1.6B, as the tumble in oil prices continued to take its toll.
- Unfavorable currency effects and a weak Brazil market weighed on AB InBev's (NYSE:BUD) net profit, but the brewer said it expects to close its SABMiller (OTCPK:SBMRY) deal in the second half of 2016.
- Siemens (OTCPK:SIEGY) powered ahead with better than expected second-quarter profits, boosted by earnings growth at its power, gas and energy-management divisions.
Fri, Feb. 5, 11:49 AM
- BG Group (OTCQX:BRGXF, OTCQX:BRGYY), the U.K. energy company being acquired by Royal Dutch Shell (RDS.A, RDS.B), says its adjusted Q4 earnings of $423M were cut by more than half from a year earlier but well ahead of analyst consensus of $347M.
- For FY 2015, BG recorded a pre-tax profit of $2.97B, against a loss of $2.3B in 2014; Shell's full-year earnings fell 80% Y/Y to $3.84B.
- BG's full-year production rose 16% Y/Y to 704K boe/day, ahead of guidance for 680K-700K boe/day.
- Collapsing crude oil prices have affected BG less than some of its peers because the company is one of the few producers increasing output as projects start in Australia and Brazil - a top attraction for Shell, which is eager boost its own reserves, production and cash flow.
Thu, Feb. 4, 3:40 AM
- Royal Dutch Shell (RDS.A, RDS.B) has become the latest big energy company to file a damage report on the impact of depressed crude prices, saying that fourth-quarter profit fell 44% to $1.8B.
- "Shell will take further impactful decisions to manage through the oil price downturn, should conditions warrant that," Chief Executive Ben van Beurden said in a statement.
- The company also announced a Q4 dividend of $0.47 per ordinary share and $0.94 per ADS.
Wed, Jan. 20, 3:35 AM
- Royal Dutch Shell's (RDS.A, RDS.B) profit fell by as much as 50% in the fourth quarter compared with the same period in 2014, illustrating how the slump in oil prices is wreaking havoc on the energy industry.
- Profit adjusted for one-time items and inventory changes is expected to be between $1.6B-$1.9B (from $3.3B), while profit for the year on the same basis is predicted to have fallen between $10.4B-$10.7B (from $22.6B).
- Another looming question is whether shareholders will approve Shell's $49B takeover of the BG Group (OTCQX:BRGYY). The oil major expects the deal to conclude in "a matter of weeks."
Oct. 29, 2015, 4:56 AM
- Royal Dutch Shell (RDS.A, RDS.B) swung to a third-quarter loss after taking a $7.9B write-down on big ticket projects including an exploration venture in the Alaskan Arctic and a major oil sands endeavor in Canada.
- The company, however, is still moving ahead with its $70B acquisition of BG Group, which remains a "springboard to focus into fewer and more profitable themes, especially deep water and integrated gas," CEO Ben van Beurden said.
- Shell's quarterly loss on a current cost-of-supplies basis - a number similar to the net income that U.S. oil companies report - came at $6.1B, down from a profit of $5.3B a year earlier.
Jul. 30, 2015, 3:31 AM
- Shell (RDS.A, RDS.B) is bracing for a "prolonged downturn," the company declared as it reported a sharp fall in Q2 profit and said it would cut 6,500 jobs and full-year capex to $30B.
- Quarterly profit on a current cost-of-supplies basis dropped to $3.4B from $5.1B a year earlier, meeting analyst expectations.
- Shell has still acted boldly despite a slump in crude prices. In April it signed a $70B deal to acquire BG Group, and is pressing ahead with expensive plans to drill in the Arctic.
Apr. 30, 2015, 7:37 AM
- Royal Dutch Shell (RDS.A, RDS.B) +0.8% premarket after reporting Q1 results that looked much like rivals BP and Total, which this week reported stronger than expected profits thanks to refining.
- Profits from Shell’s refining division rose by nearly $1B Y/Y as lower crude prices boosted refineries’ profitability, while lower oil prices pummeled earnings from its oil and gas producing upstream division.
- Shell has been coy about how it will reduce its spending in the face of lower prices, but gave some clarity in saying it will cut capex by $2B this year - less than some had expected after it said earlier this year that it would cut capex by ~$15B over the next three years.
- "At last Shell is giving granularity for its 2015 capex guidance compared to its previous vague guidance," says Raymond James analyst Bertrand Hodee. "There is a relief that Shell is reacting to the lower prices."
- Shell booked a $600M credit, thanks to a change to the U.K. North Sea tax regime, which helped it record a rise in net income rather than a decrease and offsetting the impact of a weaker Australian dollar and Brazilian real that reduced earnings by $620M.
- Shell is still looking for acquisitions after agreeing to buy BG for $70B but lacks the resources for another mega-deal, CFO Simon Henry says in the earnings conference call.
Jan. 29, 2015, 10:37 AM
- Royal Dutch Shell (RDS.A -3.2%) opens lower as Q4 earnings rose from a poor year-ago quarter but came in below analyst estimates, partly due to its money-losing North American shale business.
- Analysts at Liberum Capital in London wrote that the results were "disappointing... 20% below consensus.”
- Shell plans to cut $15B in costs over the next three years but says it does not want to "overreact" to the 60% slide in oil prices since last summer; the company also warned that its stock buyback program could be curtailed.
- Shell said it would pay a Q4 dividend of $0.47/share, up 4% Y/Y but flat Q/Q, and pledged to maintain the same dividend in Q1.
- Despite the spending curbs, Shell remains intent on drilling for oil in Alaska, where it already has spent $5B; CEO Ben van Beurden said the company hopes to drill this summer in the Chukchi Sea if it receives the necessary permits and overcomes legal challenges.
- Shell's average price received for oil during Q4 was ~$72/bbl, down 25% Y/Y, with natural gas prices down 12%, contributing to a 30% fall in E&P earnings to $1.73B from $2.48B, as lower oil prices offset benefits such as increased high-margin liquids production; with oil prices even lower now, the slump is likely to worsen in 2015.
Jan. 29, 2015, 3:15 AM
- Resisting slumping oil prices, Royal Dutch Shell (RDS.A, RDS.B) posted Q4 profit of $4.2B, compared with $2.2B for same quarter a year earlier, although it said it would lower capex in 2015 and curtail overall spending by a total of $15B over the next 3 years.
- Unlike rivals, Shell had been forecast to suffer less of a year-over-year impact in the quarter because its 2013 Q4 earnings were dragged down by issues including high spending and poor refining margins.
Oct. 30, 2014, 8:58 AM
- Royal Dutch Shell (RDS.A, RDS.B) -0.9% premarket despite reporting higher Q3 earnings, with increases in both upstream and downstream, while sales fell 7% to $107.9B.
- In Shell's core E&P business, Q3 earnings rose 25% Y/Y despite lower oil prices, benefiting from new production starting up in high-margin areas including the Gulf of Mexico; Shell also said it had fewer writeoffs on dry holes than in the year-ago quarter.
- Q3 oil and gas production fell 5% Y/Y to 2.8M boe/day because of divestments, a license expiry in Abu Dhabi, and security impacts in Nigeria.
- Net capital investment in the quarter was $4.8B, vs. $9.4B for the same period a year ago.
- Shell also says Charles Holliday, former DuPont CEO and former Bank of America chairman, will succeed Jorma Ollila as chairman next year; Holliday has been a non-executive director at Shell since 2010 and will be the company’s first American chairman.
Jul. 31, 2014, 7:56 AM
- Royal Dutch Shell (RDS.A, RDS.B) +2.9% premarket after Q2 earnings more than doubled Y/Y, benefiting from higher production of liquid petroleum and higher prices for certain products.
- Q2 profit was $5.15B on a current cost-of-supplies basis - a measure similar to profit reported by U.S. oil companies - compared with $2.39B in the year-ago period.
- Oil and gas production totaled 3.08M boe/day, in line with Q2 2013, but production of oil rose 3% while natural gas production fell 8%.
- Equity sales of LNG of 6M metric tons were 28% higher Y/Y; oil products sales volumes rose 4%.
- Shell wrote off $1.94B in U.S. gas assets; "They've obviously made some bad-value decisions in the past, and they're getting them out of the system," says a Banco Santander analyst who calls the Q2 results "encouraging."
- Says a joint venture with Gazprom includes a shale project that could be affected by new sanctions against Russia.
Apr. 30, 2014, 8:16 AM
- Royal Dutch Shell (RDS.A, RDS.B) +4% premarket after reporting Q1 earnings that came in well ahead of market expectations, supported by higher earnings in its natural gas business.
- Q1 profit fell 44% Y/Y to $4.47B after taking a $2.86B impairment charge, largely on its refineries in Asia and Europe, while revenue fell to $109.6B from $112.8B a year earlier.
- Oil and gas production totaled 3.25B boe/day, down 4% Y/Y; LNG sales volumes rose 18% Y/Y, and the division contributed $3.3B to earnings, up 30% Y/Y and a company record.
- U.S. exploration and production swung back to profit for the first time in a year; profit was $700M vs. an $800M loss in Q4, largely due to higher U.S. natural gas prices.
- Net capital spending was $10.1B vs. $8.2B in the year-ago quarter.
- Shell also raises its dividend 4% to $0.47/share, and says it is considering the sale of certain marketing assets in Norway.
Jan. 30, 2014, 3:25 PM
- Investors generally cheer Royal Dutch Shell's (RDS.A, RDS.B) plans to put its Arctic oil drilling on ice after already spending nearly $5B to drill there.
- "This is a good start, they're saying the right things, more loudly and more quantified than we had expected," RBC analyst Peter Hutton says, adding that the 4% dividend increase was "confident" and ahead of expectations.
- CEO Ben Van Beurden's strategy is what the market wanted to hear, according to Investec's Neill Morton, who expects further writedowns of Shell's North American shale assets.
- "Like the mining sector, capital discipline has been lacking at the major oil groups and there is pressure from shareholders to cut back investment to improve cash flows. Shell appears to be listening," says Charles Stanley's Garry White.
- It will take at least a year to know if Shell is prepared to write off its Arctic spending and walk away completely.
Royal Dutch Shell Plc engages in the oil and natural gas production. It operates through three segments: Upstream, Downstream, and Corporate. The Upstream segment combines the operating segments Upstream International and Upstream Americas, which have similar characteristics and are engaged in... More
Sector: Basic Materials
Industry: Major Integrated Oil & Gas
Country: United Kingdom
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