On this page a summarised overview of the Royal Dutch Shell plc third quarter 2016 results and links to the full set of results documents and webcast.
Third quarter 2016 results – November 1, 2016
Nov 1, 2016
On Tuesday, November 1, 2016 at 07.00 GMT (08.00 CET and 03.00 EDT) Royal Dutch Shell plc released its third quarter results and third quarter dividend announcement for 2016.
- Royal Dutch Shell’s third quarter 2016 CCS earnings attributable to shareholders were $1.4 billion compared with a loss of $6.1 billion for the same quarter a year ago.
- Third quarter 2016 CCS earnings attributable to shareholders excluding identified items were $2.8 billion compared with $2.4 billion for the third quarter 2015, an increase of 18%.
- 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.
- Third quarter 2016 basic CCS earnings per share excluding identified items decreased by 8% versus the third quarter 2015.
- Cash flow from operating activities for the third quarter 2016 was $8.5 billion, which included favourable working capital movements of $0.7 billion.
- Total dividends distributed to shareholders in the quarter were $3.8 billion, of which $1.1 billion were settled by issuing 44.1 million A shares under the Scrip Dividend Programme.
- 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.
- A third quarter 2016 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (“ADS”).
“Shell delivered better results this quarter, reflecting strong operational and cost performance. But lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain.
Our investment plans and portfolio actions are focused firmly on reshaping Shell into a world-class investment case at all points in the oil-price cycle, through stronger returns and improved free cash flow per share. We are making good progress towards this aim in spite of current challenging market conditions.
The integration of Shell and BG is now essentially done and has been completed well ahead of plan. It’s been an important catalyst for the significant and lasting changes we are making to the company’s working practices, cost structure and portfolio.
In parallel with the integration, we have been managing the company through the down-cycle by reducing costs and investment levels, while executing our asset sales plans and starting up new projects.
Our underlying operational costs in 2016 are already at an annualised run rate of $40 billion, $9 billion lower than Shell and BG costs in 2014. They’re set to reduce further on a like-for-like basis as deal synergies and improvements are delivered in full.
Meanwhile, 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.
We are actively working on 16 material asset sales as part of the company’s planned $30 billion divestment programme.
Cash flow will be further boosted by new projects. When fully ramped up, projects started up in 2016 are expected to add more than 250 thousand barrels of oil equivalent per day (boe/d). Cash flow from new projects started up between 2014 and 2018 is expected to total $10 billion in 2018, at an average $60 oil price.”
Simon Henry, Chief Financial Officer of Royal Dutch Shell plc hosted two audio webcasts of the third quarter 2016 results on Tuesday November 1, 2016.
More in Financial Reporting
You may also be interested in
Share price information and charts, calculators, historical share prices, ticker and ISIN codes and the difference between A and B shares.
The 2015 Annual Report and Form 20-F, the 2015 Sustainability Report and the 2015 Investors’ Handbook are available for online reading and as PDF downloads.
Download the Shell Investor Relations & Media app for iPhone, iPad and Android smartphone and tablet to keep up to date.