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Tuesday, November 1, 2016

Royal Dutch Shell (RDS.A) reported earnings on Tue 1 Nov 2016 (b/o)

** charts before earnings **






** charts 2 weeks after earnings **


Trading flat after the initial 1-day pop







Royal Dutch Shell beats by $0.25; sees capex for 2017 at the low end of prior guidance  :
  • Reports Q3 (Sep) earnings of $0.70 per share, $0.25 better than the Capital IQ Consensus of $0.45.
  • Compared with the third quarter 2015, CCS earnings attributable to shareholders excluding identified items benefited from increased production volumes mainly from BG assets, lower operating expenses more than offsetting the increase related to the consolidation of BG, and lower well write-offs.
    • This was partly offset by the decline in oil, gas and LNG prices, and increased depreciation mainly resulting from the BG acquisition, and weaker refining industry conditions.
  • Cash flow from operating activities for the third quarter 2016 was $8.5 billion, which included favourable working capital movements of $0.7 billion.
  • Global liquids realisations were 11% lower and global natural gas realisations were 31% lower than for the same quarter a year ago.
  • Oil and gas production for the third quarter 2016 was 3,595 thousand boe/d, an increase of 25% compared with the third quarter 2015. The impact of BG on the third quarter 2016 production was an increase of 806 thousand boe/d.
  • Gearing at the end of the third quarter 2016 was 29.2% versus 12.7% at the end of the third quarter 2015. This increase mainly reflects the impact of the acquisition of BG.
  • 2016 organic capital investment -- which includes $3 billion in non-cash items -- will be around $29 billion, some $18 billion below 2014 Shell and BG levels.
    • Capital investment for 2017 is expected to be around $25 billion which is at the low end of our $25-$30 billion range.
  • Dividend unchanged - A Q3 dividend has been announced of $0.47 per ordinary share and $0.94 per ADS

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