Royal Dutch Shell Plc - 2nd Quarter 2019 and Half Year Unaudited Results

SUMMARY OF UNAUDITED RESULTS  
Quarters $ million   Half year  
Q2 20191 Q1 20191 Q2 2018 %2   Reference 20191 2018 %
2,998 6,001 6,024 -50 Income/(loss) attributable to shareholders   8,999 11,923 -25
3,025 5,293 5,226 -42 CCS earnings attributable to shareholders Note 2 8,318 10,929 -24
(437) (8) 535   Of which: Identified items A (445) 837  
3,462 5,301 4,691 -26 CCS earnings attributable to shareholders excluding identified items   8,763 10,092 -13
130 131 121   Add: CCS earnings attributable to non-controlling interest   260 242  
3,592 5,432 4,812 -25 CCS earnings excluding identified items   9,024 10,334 -13
        Of which:        
1,726 2,569 2,305   Integrated Gas   4,294 4,744  
1,335 1,725 1,457   Upstream   3,060 3,008  
1,338 1,822 1,660   Downstream   3,160 3,426  
(806) (684) (610)   Corporate   (1,490) (844)  
11,031 8,630 9,500 +16 Cash flow from operating activities   19,661 18,972 +4
(4,166) (4,622) 29   Cash flow from investing activities   (8,788) (4,265)  
6,865 4,008 9,529   Free cash flow H 10,873 14,707  
0.37 0.74 0.72 -49 Basic earnings per share ($)   1.11 1.44 -23
0.37 0.65 0.63 -41 Basic CCS earnings per share ($) B 1.02 1.32 -23
0.43 0.65 0.56 -23 Basic CCS earnings per share excl. identified items ($)   1.08 1.21 -11
0.47 0.47 0.47 - Dividend per share ($)   0.94 0.94 -
1. IFRS 16 Leases (IFRS 16) was adopted with effect from January 1, 2019. See Note 8 “Adoption of IFRS 16 Leases”.
2. Q2 on Q2 change.
 
                         

Compared with the second quarter 2018, CCS earnings attributable to shareholders excluding identified items were $3.5 billion, reflecting lower realised oil, gas and LNG prices, weaker realised chemicals and refining margins as well as higher provisions, partly offset by improved production. Earnings also included a negative impact of $63 million related to the implementation of IFRS 16.

Cash flow from operating activities for the second quarter 2019 was $11.0 billion and included positive working capital movements of $0.6 billion. Compared with the second quarter 2018, cash flow from operating activities excluding working capital movements mainly reflected lower earnings, partly offset by reduced cash margining outflows on commodity derivatives. This also included a positive impact of $1.0 billion related to the implementation of IFRS 16.

Total dividends distributed to shareholders in the quarter were $3.8 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 October 28, 2019. In aggregate, since the launch of the share buyback programme, almost 294 million A ordinary shares have been bought back for cancellation for a consideration of $9.25 billion.

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented: “We have delivered good cash flow performance, despite earnings volatility, in a quarter that has seen challenging macroeconomic conditions in refining and chemicals as well as lower gas prices. This quarter we achieved some key milestones, such as the start-up of Appomattox and the first LNG cargo from Prelude. These add to our competitive portfolio, which is expected to generate additional cash in the coming quarters.

The resilience of our Upstream and customer-facing businesses and their ability to generate cash support the delivery of our 2020 outlook, which remains unchanged.