Second quarter 2015 results - July 30, 2015
On Thursday, July 30, 2015 Royal Dutch Shell plc released its second quarter results and second quarter interim dividend announcement for 2015. On this page a summarised overview of the results and links to the full set of results documents and webcast.
- Second quarter 2015 results CEO video comment
- Royal Dutch Shell plc updates on company development and recommended combination with BG Group plc
- Second quarter 2015 summary of unaudited results
- Second quarter 2015 results financial documents
- Second quarter 2015 results dividend announcement
- Second quarter 2015 results webcasts & presentations
CEO video comment
Second quarter 2015 results CEO video comment
Hello, I am Ben van Beurden, the CEO of Royal Dutch Shell.
Let me update you on where we are at Shell. It is a tough environment for our industry but Shell's integrated business and our performance drive are helping to mitigate the impact of low oil prices on our bottom line.
As our results today show, we are successfully reducing our capital spending and operating costs, and delivering a competitive performance in today's oil market downturn.
But we have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on potential recovery.
We're taking a prudent approach, pulling on powerful financial levers to manage through this downturn, always making sure we have the capacity to pay attractive dividends for shareholders.
This includes a 20% spending reduction in 2015, 10% cut in operating costs and a drive to reduce both opex and capex again in 2016.
Commitment to dividend remains unchanged, $1.88 per share in 2015 and at least $1.88 per share in 2016.
Commitment to buy-backs unchanged, $25 billion from 2017, assuming we complete the BG transaction in early 2016.
On the BG deal, we are making good progress with the transaction, which should enhance our free cash flow, and create a strong company in LNG and deep water innovation.
This will be a springboard to change Shell to a simpler and more profitable company, and we will follow through with $30 billion of asset sales to reshape the company.
In essence we grow to simplify. The result should be a more profitable, resilient and competitive Shell, able to deliver better returns to shareholders.
Overall, these are challenging times for the industry, and we are responding with urgency and determination, but also with a great sense of excitement for the future.
Thank you for listing to this vodcast today.
- Royal Dutch Shell’s second quarter 2015 earnings, on a current cost of supplies (CCS) basis (see Note 2), were $3.4 billion compared with $5.1 billion for the same quarter a year ago.
- Second quarter 2015 CCS earnings excluding identified items (see page 4) were $3.8 billion compared with $6.1 billion for the second quarter 2014, a decrease of 37%.
- Compared with the second quarter 2014, CCS earnings excluding identified items benefited from strong Downstream results reflecting steps taken by the company to improve financial performance and higher realised refining margins. In Upstream, earnings were impacted by the significant decline in oil and gas prices and decreased production volumes, partly offset by lower costs and depreciation.
- Basic CCS earnings per share excluding identified items decreased by 37% versus the same quarter last year.
- Cash flow from operating activities for the second quarter 2015 was $6.1 billion, compared with $8.6 billion for the same quarter last year. Excluding working capital movements, cash flow from operating activities for the second quarter 2015 was $7.6 billion, compared with $11.0 billion for the second quarter 2014.
- Total dividends distributed to Royal Dutch Shell plc shareholders in the quarter were $3.0 billion, of which $0.7 billion were settled under the Scrip Dividend Programme. No shares were bought back during the second quarter.
- Gearing at the end of the second quarter 2015 was 12.7%.
- A second quarter 2015 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (“ADS”).
Ben van Beurden, Chief Executive Officer of Royal Dutch Shell plc hosted live video webcasts of the second quarter 2015 results on Thursday July 30, 2015 at 14:00 BST (15:00 CEST / 09:00 EDT).
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