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On this page a summarised overview of the Royal Dutch Shell plc third quarter 2014 results and links to the full set of results documents and webcast.

Third quarter 2014 summary of unaudited results

  • Royal Dutch Shell’s third quarter 2014 earnings, on a current cost of supplies (CCS) basis (see Note 2), were $5.3 billion compared with $4.2 billion for the same quarter a year ago.

  • Third quarter 2014 CCS earnings excluding identified items (see page 5) were $5.8 billion compared with $4.5 billion for the third quarter 2013, an increase of 31%.

  • Compared with the third quarter 2013, CCS earnings excluding identified items benefited from improved Downstream and Upstream results. In Downstream, earnings benefited from increased contributions from refining including improved operating performance, and trading. In Upstream, earnings increased due to the impact of new, higher-margin production, lower exploration expenses, and higher earnings from Integrated Gas, despite the effect of lower oil prices and volumes overall. The increase of a deferred tax liability as a result of the weakening Australian dollar reduced earnings by some $400 million compared with the third quarter 2013.

  • Basic CCS earnings per share excluding identified items increased by 30% versus the third quarter 2013.

  • Cash flow from operating activities for the third quarter 2014 was $12.8 billion, compared with $10.4 billion for the same quarter last year. Excluding working capital movements, cash flow from operating activities for the third quarter 2014 was $11.1 billion, compared with $9.9 billion for the third quarter 2013.

  • Capital investment for the third quarter 2014 was $8.5 billion. Net capital investment (see Note 2) for the third quarter was $4.8 billion, compared with $9.4 billion for the same period a year ago.

  • Total cash dividends paid to shareholders in the third quarter 2014 were $3.0 billion. During the third quarter some 18.5 million shares were bought back for cancellation for a consideration of $0.8 billion.

  • Gearing at the end of the third quarter 2014 was 11.7%.

  • A third quarter 2014 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (“ADS”), an increase of 4% compared with the third quarter 2013.
Q3 2014 summary of unaudited results

Summary of unaudited results

Quarters

$ million

Nine months

Q3
2014

Q2
2014

Q3
2013

%1

 

2014

2013

%

 

 

 

 

 

 

 

 

4,463

5,307

4,677

-5

Income attributable to
Royal Dutch Shell plc
shareholders

14,279

14,590

-2

803

(160)

(429)

 

Current cost of supplies
(CCS) adjustment for
Downstream

599

3

 

5,266

5,147

4,248

+24

CCS earnings

14,878

14,593

+2

(581)

(979)

(209)

 

Identified items2

(4,422)

(1,984)

 

5,847

6,126

4,457

+31

CCS earnings excluding
identified items

19,300

16,577

+16

 

 

 

 

 Of which:

 

 

 

4,343

4,722

3,466

 

          Upstream

14,775

12,640

 

1,793

1,347

892

 

          Downstream

4,715

3,908

 

(289)

57

99

 

          Corporate and Non-controlling interest

(190)

29

 

 

 

 

 

 

 

 

 

12,811

8,641

10,409

+23

Cash flow from
operating activities

35,436

34,412

+3

 

 

 

 

 

 

 

 

0.83

0.81

0.68

+22

Basic CCS earnings per
share ($)

2.36

2.32

+2

1.66

1.62

1.36

 

Basic CCS earnings per
ADS ($)

4.72

4.64

 

0.92

0.97

0.71

+30

Basic CCS earnings per
share excl. identified
items ($)

3.06

2.63

+16

1.84

1.94

1.42

 

Basic CCS earnings per
ADS excl. identified
items ($)

6.12

5.26

 

 

 

 

 

 

 

 

 

0.47

0.47

0.45

+4

Dividend per share ($)

1.41

1.35

+4

0.94

0.94

0.90

 

Dividend per ADS ($)

2.82

2.70

 

1  Q3 on Q3 change

2  See page 5

Third quarter 2014 results financial documents

Third quarter 2014 dividend announcement

CEO statement

Ben van Beurden

“Shell is proud to deliver high-quality fuels, lubricants and petrochemicals, for transportation, power generation and manufacturing industries. With over 90,000 employees in more than 70 countries around the world, Shell is dedicated to delivering low-cost, safe and reliable energy for our customers. 

The recent decline in oil prices is part of the volatility in our industry. It underlines the importance of our drive to get a tighter grip on performance management, keep a tight hold on costs and spending, and improve the balance between growth and returns.

Our results today show that we are delivering on the three priorities I set out at the start of 2014 – better financial performance, enhanced capital efficiency and continued strong project delivery.

We have moderated our spending on growth and accelerated disposals of our non-strategic portfolio as part of a drive to improve capital efficiency. Proceeds from asset sales so far this year total $11.6 billion, with further disposals ongoing.

Our plans to exit from Pinedale and Haynesville mark the completion of the major sales programme in our North America resources plays portfolio. We are now focusing on creating value from this slimmed-down position. Restructuring in Oil Products continues, with the completion of the divestment of Shell’s Australia positions in the quarter.

Our new investments are delivering benefits to the bottom line. We have brought four new deep-water fields on-stream this year. We are also adding new potential to the portfolio through exploration and appraisal successes.

Shell’s strategy is founded on creating value for the long term.

Our dividend per share for the third quarter of 2014 is up 4% from year-ago levels. With $8.9 billion of dividends declared and $2.4 billion of shares repurchased in the first three quarters of this year, we are on track for a programme of over $30 billion of dividend distributions and buybacks for 2014 and 2015 combined. All of this underlines the company’s recent improved performance and potential for the future.”

CFO video comment

Webcasts & presentations

Simon Henry, Chief Financial Officer of Royal Dutch Shell plc, hosted audio webcasts of the third quarter 2014 results on Thursday October 30.

* If you are accessing this page on an iPad or iPhone, you can also download and install our Investor & Media app  and go to the Results section to listen to these webcasts.