| ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 UNAUDITED RESULTS |
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| SUMMARY OF UNAUDITED RESULTS | ||||||||||||||||||||||||||
| Quarters | $ million | Nine Months | ||||||||||||||||||||||||
| Q3 2020 | Q2 2020 | Q3 2019 | %¹ | Reference | 2020 | 2019 | % | |||||||||||||||||||
| 489 | (18,131) | 5,879 | -92 | Income/(loss) attributable to shareholders | (17,666) | 14,878 | -219 | |||||||||||||||||||
| 177 | (18,377) | 6,081 | -97 | CCS earnings attributable to shareholders | Note 2 | (15,443) | 14,399 | -207 | ||||||||||||||||||
| 955 | 638 | 4,767 | -80 | Adjusted Earnings² | A | 4,453 | 13,530 | -67 | ||||||||||||||||||
| 10,403 | 2,563 | 12,252 | -15 | Cash flow from operating activities | 27,818 | 31,913 | -13 | |||||||||||||||||||
| (2,833) | (2,320) | (2,130) | Cash flow from investing activities | (7,871) | (10,918) | |||||||||||||||||||||
| 7,571 | 243 | 10,122 | Free cash flow | G | 19,947 | 20,995 | ||||||||||||||||||||
| 3,737 | 3,617 | 6,098 | Cash capital expenditure | C | 12,324 | 17,036 | ||||||||||||||||||||
| 7,854 | 7,504 | 8,657 | -9 | Underlying operating expenses | F | 23,958 | 27,000 | -11 | ||||||||||||||||||
| (4.9)% | (2.9)% | 8.6% | ROACE (Net income basis) | D | (4.9)% | 8.6% | ||||||||||||||||||||
| 3.9% | 5.3% | 8.1% | ROACE (CCS basis excluding identified items) | D | 3.9% | 8.1% | ||||||||||||||||||||
| 31.4% | 32.7% | 27.9% | Gearing | E | 31.4% | 27.9% | ||||||||||||||||||||
| 3,081 | 3,379 | 3,563 | -14 | Total production available for sale (thousand boe/d) | 3,392 | 3,632 | -7 | |||||||||||||||||||
| 0.06 | (2.33) | 0.73 | -92 | Basic earnings per share ($) | (2.27) | 1.84 | -223 | |||||||||||||||||||
| 0.1665 | 0.16 | 0.47 | -65 | Dividend per share ($) | 0.4865 | 1.41 | -65 | |||||||||||||||||||
1. Q3 on Q3 change.
2. Adjusted Earnings is defined as income/(loss) attributable to shareholders plus cost of supplies adjustment (see Note 2) and excluding identified items (see Reference A).
Income attributable to Royal Dutch Shell plc shareholders was $0.5 billion for the third quarter 2020, which reflected lower realised prices for oil and LNG as well as lower realised refining margins and production volumes compared with the third quarter 2019. This was partly offset by lower operating expenses, well write-offs, depreciation and strong marketing margins. Income attributable to Royal Dutch Shell plc shareholders included an impairment charge of $1.1 billion, partly offset by gains on fair value accounting of commodity derivatives of $0.5 billion.
Cost of supplies adjustment attributable to Royal Dutch Shell plc shareholders for the third quarter 2020 was negative $0.3 billion.
Adjusted Earnings were $1.0 billion for the third quarter 2020, reflecting lower realised prices for oil and LNG as well as lower realised refining margins and production volumes compared with the third quarter 2019. This was partly offset by lower operating expenses, well write-offs, depreciation and strong marketing margins.
Cash flow from operating activities for the third quarter 2020 was $10.4 billion, which included positive working capital movements of $1.4 billion. Cash flow from investing activities for the quarter was an outflow of $2.8 billion, driven mainly by capital expenditure, partly offset by proceeds from divestments.
Gearing was 31.4% at the end of the third quarter 2020, compared with 32.7% at the end of the second quarter 2020, mainly driven by strong cash flow generation in the quarter.
Total dividends distributed to Royal Dutch Shell plc shareholders in the quarter were $1.2 billion.
Shell announces a dividend per share growth by around 4% to 16.65 US cents for the third quarter 2020 and annually thereafter, subject to Board approval.
For the full results please visit the Royal Dutch Shell Website on – https://www.shell.com/investors/financial-reporting/quarterly-results/2020/q3-2020.html