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Royal Dutch Shell plc (RDS.A)

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  • Thu, Jan. 29, 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.
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  • Thu, Jan. 29, 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.
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  • 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.
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  • Oct. 30, 2014, 6:18 AM
    • Royal Dutch Shell (NYSE:RDS.A): Q3 adjusted CCS EPS of $0.92.
    • Revenue of $109.8B (-7.2% Y/Y)
    • Shares -1.2% PM.
    • Press Release
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  • 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.
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  • Jul. 31, 2014, 6:10 AM
    • Royal Dutch Shell (NYSE:RDS.A): Q2 EPS of $1.94
    • Revenue of $115.27B (+0.8% Y/Y) misses by $9.71B.
    • Shares +2.8% PM.
    • Press Release
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  • 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.
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  • 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.
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  • Jan. 30, 2014, 3:04 AM
    • Shell's (RDS.A, RDS.B) Q4 net-profit equivalent slumped 71% to $2.2B, hurt by higher depreciation, increased exploration expenses, lower upstream volumes and weak industry conditions in downstream oil products.
    • As the company warned almost two weeks ago, earnings on a current cost of supplies basis plummeted to $2.9B from $5.6B a year earlier.
    • Revenue dropped to $109.24B from $116.51B. (Earnings PR)
    • The company plans to cut capex to $37B in 2014 from $46B in 2013 and is scrapping its troubled exploration program in Alaska.
    • Shell also intends to sell $15B worth of assets this year and next as it looks to increase the rate of divestments. (Strategy PR)
    • The firm has proposed raising its Q1 dividend by 4% to $0.47 per share (Dividend PR).
    | 7 Comments
  • Jan. 17, 2014, 2:51 AM
    • Shell (RDS.A, RDS.B) has warned that it expects its Q4 profit to be "significantly lower than recent levels of profitability," with the company estimating that adjusted earnings on a current cost of supplies basis will plummet to $2.9B from $7.3B a year earlier. Consensus is for $4B.
    • Shell cited oil and gas prices, "weak industry conditions in downstream oil products, higher exploration expenses, and lower upstream volumes" as reasons for the drop in earnings.
    • Shell is due to publish its full results on January 30. (PR)
    | 13 Comments
  • Oct. 31, 2013, 11:24 AM
    • In contrast with BP's (BP +0.2%) dividend hike and promise of asset sales earlier this week, Royal Dutch Shell's (RDS.A -4.5%) Q3 results show it has little wiggle room to dole out more shareholder goodies, WSJ's Helen Thomas writes.
    • Shell is set to generate operating cash flow of $40B-$45B this year, which may not cover its $42B outlay in net capital investment let alone $13B in cash dividends and share buybacks; annual cash flow needs to approach $50B in the next two years to assure its $175B-$200B target for cash generation during 2012-15.
    • Shell's best chance of improving its valuation is asset sales, Thomas writes; its ability to wrap up quick sales at decent prices will be the test of its willingness to make tough decisions about where to invest its capital.
    | 2 Comments
  • Oct. 31, 2013, 8:01 AM
    • Royal Dutch Shell (RDS.A, RDS.B) says it is proceeding with its 100%-owned Carmon Creek project in Alberta, which is expected to produce up to 80K bbl/day of oil.
    • More results from Shell's "disappointing" Q3 results: Shell spent $9.7B in the quarter on capital investment, part of ~$45B planned for the year, while return on average capital employed was 10.4% at the end of Q3 vs. 13.5% a year ago.
    • Shell continues to suffer problems in the Americas, losing $347M on its E&P business there.
    • Earnings at the chemicals and refining unit, led by Ben van Beurden - who will replace outgoing Peter Voser as CEO at year's end - fell 43% to $900M due to "global overcapacity and weak demand."
    • Shares -4.4% premarket.
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  • Oct. 31, 2013, 4:14 AM
    • Shell's (RDS.A, RDS.B) Q3 adjusted profit slumped 32% to $4.5B and missed consensus of $5.3B.
    • Net income dropped to $4.7B from $7.1B.
    • Earnings were hurt by weak refining margins - as with Total - increased production and exploration costs, disruptions in Nigeria because of oil theft and sabotage, and lower dividends from a Liquefied Natural Gas venture.
    • Output dropped 2% to 2.931M barrels of oil equivalent a day.
    • Shell benefited from increased contributions from its chemicals business, as well as from greater underlying upstream production volumes, led by Integrated Gas.
    • Declares Q3 dividend $0.45 a ordinary share and $0.90 per American Depositary Share, ups 5% from last year.
    • Shares are -4.7% in London. (PR)
    | 3 Comments
  • Aug. 1, 2013, 9:47 AM
    • Shell's (RDS.A -4.9%) $2.1B write-down on its North American shale oil exploration acknowledges some of its spending there will not prove economically viable, and that hitting its cash flow targets could get tougher.
    • Adding to the mystery is Shell's refusal to identify which shale formation has taken the write-down or to explain the charge.
    • Shale skeptics might take the write-down as first evidence the U.S. oil boom is overhyped, but WSJ's James Herron thinks it more likely that Shell has "just failed to get lucky" - Eagle Ford, where Shell has significant operations, is well known for its “sweet spots,” which yield greater volumes of the prized liquids compared with gas.
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  • Aug. 1, 2013, 3:45 AM
    • Shell (RDS.A): Q2 adjusted net profit drops 20% to $4.6B, below forecasts for $5.9B.
    • Including adjustments, profit drops to $2.4B from $5.98B, due to a $2.2B charge on liquids-rich shale properties in North America, "reflecting the latest insights from exploration and appraisal drilling results and production information".
    • Revenues $112.67B vs $117.07B a year earlier.
    • EPS 0.27 cents vs $0.66 cents.
    • Shell takes a $700M hit for thefts in Nigeria and the tax impact of a weakening Australian dollar.
    • Shell warns that it expect losses at its North American exploration & production division to continue during H2 at least; is carrying out a strategic review of the business and could sell some assets.
    • Total oil and gas production -1% to 3.062M barrels of oil equivalent per day vs consensus of 3.146M.
    • Declares Q2 dividend of 45 cents a share and 90 cents per ADS, +5% on year.
    • Shares -5.1% in London. (PR)
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  • May. 2, 2013, 7:40 AM
    More on Shell's (RDS.A, RDS.B) Q1 results: Attention is on the retirement of CEO Peter Voser, but adjusted net profit rose 3% Y/Y to $7.52B, well above analyst consensus of ~$6.5B. Revenues were $112.8B vs. $119.9B a year ago. Total oil and gas production was 3.559M boe/day, flat Y/Y and in-line with expectations. Shares +1.8% premarket. (PR)
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Company Description
Royal Dutch Shell PLC is an integrated oil & gas company. The Company explores for & extracts crude oil, natural gas and natural gas liquids. It also liquefies and transports gas.