SHELL CCS EARNINGS $5.3 BLN
SHELL - 1ST QUARTER 2019 UNAUDITED RESULTS
CCS earnings attributable to shareholders excluding identified items were $5.3 billion, reflecting lower realised chemicals and refining margins, decreased realised oil prices and lower tax credits, partly offset by stronger contributions from trading as well as increased realised LNG and gas prices compared with the first quarter 2018. In addition, there was a negative impact of $43 million related to the implementation of IFRS 16.
Cash flow from operating activities for the first quarter 2019 of $8.6 billion included negative working capital movements of $3.5 billion, leading to cash flow from operating activities excluding working capital movements of $12.1 billion. Excluding working capital movements and a positive impact of $949 million related to the implementation of IFRS 16, cash flow from operating activities increased to $11.3 billion compared with $10.4 billion in the first quarter 2018, mainly due to a higher cash-generative portfolio of assets.
Total dividends distributed to shareholders in the quarter were $3.9 billion. Today, Shell launches the next tranche of the share buyback programme, with a maximum aggregate consideration of $2.75 billion in the period up to and including July 29, 2019. In aggregate, since the launch of the share buyback programme, 215.7 million A ordinary shares were bought back for cancellation for a consideration of $6.75 billion.
Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:
"Shell has made a strong start to 2019, with the first quarter financial performance demonstrating the strength of our strategy and the quality of our portfolio of assets. The power of our brand, serving millions of customers every day, continues to be a differentiator. Our integrated value chain enabled our Downstream business to deliver robust results despite challenging market conditions. The consistent financial performance across all our businesses provides confidence in meeting our 2020 outlook."
Transcript of the CFO video comment
Today we are announcing our results for the first quarter 2019.
We've had a strong start to the year and the results show that our strategy is working.
Let me share some highlights that demonstrate our performance.
In the first quarter, we have delivered cash flow from operations excluding working capital movements of $12.1 billion.
This financial performance shows the strength of our strategy and the quality of our portfolio of assets.
The power of our brand and serving millions of customers every day, continue to be a differentiator.
Our integrated value chain enabled our Downstream business to deliver robust results despite challenging market conditions.
This consistent financial performance, across all of our businesses, provides confidence in meeting our 2020 outlook.
This quarter, we saw exciting developments in our portfolio.
In February, we announced that production started at the Lula North deep-water field in Brazil.
And in the US Gulf of Mexico, we made a significant discovery at the Blacktip prospect encountering more than 400 feet net oil pay.
Our Retail business is increasing its presence in key growth markets.
In the last two quarters we opened some 250 sites across China, India, Mexico, Indonesia and Russia.
Further acquisitions by our New Energies business enables us to offer more and cleaner energy solutions to our customers.
We aim to build a business that is both competitive and resilient.
We also continue to upgrade our existing portfolio with divestments of our Caesar-Tonga asset and the SASREF refining joint venture.
Now let me highlight the key numbers for the first quarter all of which include the impact of the new accounting standard IFRS16.
$12.1 billion of cash flow from operations excluding working capital movements $4.0 billion of free cash flow $5.3 billion of earnings on a current cost of supplies basis excluding identified items.
All of this at an average oil price of $63 per barrel this quarter.
Return on average capital employed was 8.4%.
Our gearing is now 26.5%, in line with our expected increase as a result of IFRS16.
This has been another good quarter for Shell.
We continue to focus on consistent delivery.
We are confident in our 2020 outlook and our ability to generate resilient and profitable growth into the 2020s.
I look forward to telling you more about Shell's future at our Management Day event in June.
Thank you.
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Earlier:
2019, April, 22, 08:35:00
GAZPROM, SHELL: SAKHALIN ENERGY
The meeting participants praised the project operator, Sakhalin Energy, for its work.
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2019, April, 12, 11:20:00
SHELL EXITS GAZPROM
Royal Dutch Shell has decided to exit a Baltic liquefied natural gas (LNG) project led by Russian state gas major Gazprom on the Russian Baltic coast.
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2019, April, 12, 11:05:00
SHELL SELLS MEXICO $965 MLN
Shell Offshore Inc. (Shell), a subsidiary of Royal Dutch Shell plc, signed an agreement yesterday to sell its 22.45% non-operated interest in the Caesar-Tonga asset in the US Gulf of Mexico to Delek CT Investment LLC, a subsidiary of Delek Group Ltd (Delek). The total consideration for this deal is $965 million in cash.
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2019, March, 22, 10:30:00
COMPETITIVE RUSSIAN LNG
Russian LNG is well positioned to compete with North American projects to reach new markets in Asia and the Atlantic Basin despite the challenges, a Shell executive said Wednesday at the LNG Congress in Moscow.
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2019, February, 25, 12:05:00
GLOBAL LNG TRADE +11%
SHELL - Strong demand for cleaner-burning fuel in Asia continued to drive rapid growth in liquefied natural gas (LNG) use in 2018, with global demand rising by 27 million tonnes to 319 million tonnes, according to Shell’s latest annual LNG Outlook.
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2019, February, 1, 10:45:00
SHELL EARNINGS $21.4 BLN UP 36%
SHELL - Compared with the fourth quarter 2017, CCS earnings attributable to shareholders excluding identified items of $5.7 billion mainly benefited from higher realised oil, gas and LNG prices as well as stronger contributions from crude oil and LNG trading, partly offset by movements in deferred tax positions. Full year earnings of $21.4 billion also reflected higher realised oil, gas and LNG prices, partly offset by movements in deferred tax positions.
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2019, February, 1, 10:40:00
SHELL THIRD BUYBACK
SHELL - Royal Dutch Shell plc (the ‘company’) announces the commencement of trading in the third tranche of its share buyback programme previously announced on July 26, 2018. In the third tranche, the company has entered into an irrevocable, non-discretionary arrangement with a broker to enable the purchase of A ordinary shares and/or B ordinary shares for a period up to and including April 29, 2019.
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