Royal Dutch Shell - Fourth Quarter 2018 and Full Year Unaudited Results

SUMMARY OF UNAUDITED RESULTS
Quarters $ million   Full year
Q4 2018 Q3 2018 Q4 2017 %1   Definition 2018 2017 %
5,590 5,839 3,807 +47 Income/(loss) attributable to shareholders   23,352 12,977 +80  
7,334 5,570 3,082 +138 CCS earnings attributable to shareholders Note 2 23,833 12,081 +97  
1,646 (54) (1,221)   Of which: Identified items A 2,429 (3,683)    
5,688 5,624 4,303 +32 CCS earnings attributable to shareholders excluding identified items   21,404 15,764 +36  
120 169 94   Add: CCS earnings attributable to non-controlling interest   531 418    
5,808 5,793 4,397 +32 CCS earnings excluding identified items   21,935 16,182 +36  
        Of which:          
2,363 2,292 1,636   Integrated Gas   9,399 5,268    
1,881 1,886 1,650   Upstream   6,775 3,091    
2,131 2,010 1,396   Downstream   7,567 9,082    
(567) (395) (285)   Corporate   (1,806) (1,259)    
22,021 12,092 7,275 +203 Cash flow from operating activities   53,085 35,650 +49  
(5,312) (4,082) (665)   Cash flow from investing activities   (13,659) (8,029)    
16,709 8,010 6,610   Free cash flow H 39,426 27,621    
0.68 0.70 0.46 +48 Basic earnings per share ($)   2.82 1.58 +78  
0.89 0.67 0.37 +141 Basic CCS earnings per share ($) B 2.88 1.47 +96  
0.69 0.68 0.52 +33 Basic CCS earnings per share excl. identified items ($)   2.58 1.92 +34  
0.47 0.47 0.47 - Dividend per share ($)   1.88 1.88 -  
1. Q4 on Q4 change.
 

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Thursday 31 January, 2019

 

Royal Dutch Shell

Fourth Quarter 2018 and Full Year Unaudited Results

ROYAL DUTCH SHELL PLC

4th QUARTER 2018 AND FULL YEAR UNAUDITED RESULTS

 
SUMMARY OF UNAUDITED RESULTS
Quarters $ million   Full year
Q4 2018 Q3 2018 Q4 2017 %1   Definition 2018 2017 %
5,590 5,839 3,807 +47 Income/(loss) attributable to shareholders   23,352 12,977 +80  
7,334 5,570 3,082 +138 CCS earnings attributable to shareholders Note 2 23,833 12,081 +97  
1,646 (54) (1,221)   Of which: Identified items A 2,429 (3,683)    
5,688 5,624 4,303 +32 CCS earnings attributable to shareholders excluding identified items   21,404 15,764 +36  
120 169 94   Add: CCS earnings attributable to non-controlling interest   531 418    
5,808 5,793 4,397 +32 CCS earnings excluding identified items   21,935 16,182 +36  
        Of which:          
2,363 2,292 1,636   Integrated Gas   9,399 5,268    
1,881 1,886 1,650   Upstream   6,775 3,091    
2,131 2,010 1,396   Downstream   7,567 9,082    
(567) (395) (285)   Corporate   (1,806) (1,259)    
22,021 12,092 7,275 +203 Cash flow from operating activities   53,085 35,650 +49  
(5,312) (4,082) (665)   Cash flow from investing activities   (13,659) (8,029)    
16,709 8,010 6,610   Free cash flow H 39,426 27,621    
0.68 0.70 0.46 +48 Basic earnings per share ($)   2.82 1.58 +78  
0.89 0.67 0.37 +141 Basic CCS earnings per share ($) B 2.88 1.47 +96  
0.69 0.68 0.52 +33 Basic CCS earnings per share excl. identified items ($)   2.58 1.92 +34  
0.47 0.47 0.47 - Dividend per share ($)   1.88 1.88 -  
1. Q4 on Q4 change.

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.

Cash flow from operating activities for the fourth quarter 2018 was $22.0 billion, which included positive working capital movements of $9.1 billion, mainly as a result of a fall in crude oil price and lower inventory levels. Excluding working capital movements, cash flow from operations of $12.9 billion mainly reflected increased earnings, compared with the fourth quarter 2017.

Total dividends distributed to shareholders in the quarter were $3.9 billion. In January 2019, the second tranche of the share buyback programme was completed, with 83.5 million A ordinary shares bought back for cancellation for an aggregate consideration of $2.5 billion. Today, Shell launches the next tranche of the share buyback programme, with a maximum aggregate consideration of $2.5 billion in the period up to and including April 29, 2019.

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Shell delivered a very strong financial performance in 2018, with cash flow from operations of $49.6 billion, excluding working capital movements. We delivered on our promises for the year, including the completion of the $30 billion divestment programme and starting up key growth projects while maintaining discipline on capital investment. We paid our entire dividend in cash, further reduced our debt and launched our share buyback programme, with $4.5 billion in shares repurchased so far.

We will continue with a strong delivery focus in 2019, with a disciplined approach to capital investment and growing both our cash flow and returns. Our strategy to deliver a world-class investment case is working.

OUTLOOK FOR THE FIRST QUARTER 2019

Compared with the first quarter 2018, Integrated Gas production is expected to decrease by some 140 – 170 thousand boe/d, mainly due to divestments, the transfer of some activities into the Upstream segment as of 2019 and higher maintenance activities. LNG liquefaction volumes are expected to be 0.4 – 0.7 million tonnes lower, mainly as a result of divestments and higher maintenance activities.

Compared with the first quarter 2018, Upstream production is expected to be 10 – 50 thousand boe/d lower, mainly due to divestments and field decline, partly offset by ramp-ups of existing fields. This includes the impact of additional activities previously reported in the Integrated Gas segment in 2018.

Refinery availability is expected to decrease in the first quarter 2019 compared with the same period a year earlier as a result of higher maintenance activity.

Oil Products sales volumes are expected to be 40 – 70 thousand boe/d lower compared with the same period a year earlier, mainly as a result of the divestment in Argentina.

Chemicals manufacturing plant availability in the first quarter 2019 is expected to be at a similar level as in the first quarter 2018.

Corporate earnings excluding identified items are expected to be a net charge of $400 – 450 million in the first quarter 2019 and a net charge of $1,700 – 1,900 million for the full year 2019. This excludes the impact of currency exchange rate effects and the impact of IFRS 16 Leases.

The results and outlook reported in this announcement do not include the impact of the application of the new standard IFRS 16, which is effective as of January 1, 2019. The quantitative impact at transition date will be disclosed in the 2018 Annual Report and Form 20-F.