This page provides a summarised overview of the Royal Dutch Shell plc third quarter 2019 results and links to the full set of results documents and webcast.

CFO video comment

Third quarter 2019 summary of unaudited results

Summary of unaudited results

$ million

Q3 2019 (1)
Q2 2019 (1)
Q3 2018
% (2)
Reference
Nine months 2019 (1)
Nine months 2018
%
5,879
2,998
5,839
+1
Income/(loss) attributable to shareholders
14,878
17,762
-16
6,081
3,025
5,570
+9
CCS earnings attributable to shareholders
Note 2
14,399
16,499
-13
1,313
(437)
(54)
Of which: Identified items
A
868
783
4,767
3,462
5,624
-15
CCS earnings attributable to shareholders excluding identified items
13,530
15,716
-14
149
130
169
Add: CCS earnings attributable to non-controlling interest
410
411
4,917
3,592
5,793
-15
CCS earnings excluding identified items
13,940
16,127
-14
Of which:
2,674
1,726
2,292
Integrated Gas
6,968
7,036
907
1,335
1,886
Upstream
3,967
4,894
2,153
1,338
2,010
Downstream
5,313
5,436
(817)
(806)
(395)
Corporate
(2,307)
(1,239)
12,252
11,031
12,092
+1
Cash flow from operating activities
31,913
31,064
+3
(2,130)
(4,166)
(4,082)
Cash flow from investing activities
(10,918)
(8,347)
10,122
6,865
8,010
Free cash flow
H
20,995
22,717
0.73
0.37
0.70
+4
Basic earnings per share ($)
1.84
2.14
-14
0.76
0.37
0.67
+13
Basic CCS earnings per share ($)
B
1.78
1.99
-11
0.59
0.43
0.68
-13
Basic CCS earnings per share excl. identified items ($)
1.67
1.89
-12
0.47
0.47
0.47
-
Dividend per share ($)
1.41
1.41
-

(1)  IFRS 16 Leases (IFRS 16) was adopted with effect from January 1, 2019. See Note 8 “Adoption of IFRS 16 Leases”.

(2) Q3 on Q3 change.

Please refer to the full quarterly results announcement for Notes 1 through 8 and Alternative performance measures A through I.

Compared with the third quarter 2018, CCS earnings attributable to shareholders excluding identified items were $4.8 billion, reflecting lower realised oil, LNG and gas prices, as well as weaker realised refining and chemicals margins. This was partly offset by significantly stronger contributions from LNG and oil products trading and optimisation as well as higher realised margins in retail and global commercial.

Compared with the third quarter 2018, cash flow from operating activities excluding working capital movements was $12.1 billion, reflecting lower earnings, higher pension contributions and lower dividends received.

Total dividends distributed to shareholders in the quarter were $3.8 billion. Today, Shell launches the next tranche of the share buyback programme, with a maximum aggregate consideration of $2.75 billion in the period up to and including January 27, 2020. Since the launch of the programme, Shell has bought back $12 billion in shares for cancellation.

Additional performance measures

$ million

Q3 2019
Q2 2019
Q3 2018
% (1)
Reference
Nine months 2019
Nine months 2018
%
6,098
5,337
5,902
Cash capital expenditure (2)
C
17,036
16,648
7,759
6,341
5,717
Capital investment (3)
C
20,785
16,999
3,563
3,583
3,596
-1
Total production available for sale (thousand boe/d)
3,632
3,625
-
55.99
61.26
68.21
-18
Global liquids realised price ($/b)
58.18
65.13
-11
4.19
4.21
4.92
-15
Global natural gas realised price ($/thousand scf)
4.63
4.91
-6
8,650
9,941
9,312
-7
Operating expenses
G
27,509
29,037
-5
8,657
9,477
9,248
-6
Underlying operating expenses
G
27,000
28,878
-7
8.6%
8.4%
8.7%
ROACE (Net income basis)
E
8.6%
8.7%
8.1%
8.2%
8.1%
ROACE (CCS basis excluding identified items) (4)
E
8.1%
8.1%
27.9%
27.6%
23.1%
Gearing
F
27.9%
23.1%

(1) Q3 on Q3 change.

(2) With effect from 2019, Cash capital expenditure has been introduced as a capital spent performance measure (see Reference C).

(3) With effect from 2019, the definition has been amended (see Reference C). Comparative information has been revised.

(4) With effect from 2019, the definition has been amended (see Reference E). Comparative information has been revised.

Please refer to the full quarterly results announcement for Notes 1 through 8 and Alternative performance measures A through I.

 

Supplementary financial and operational disclosure for this quarter is available at www.shell.com/investor.

The IFRS 16 impact on net debt in the third quarter 2019 was an increase of $15,566 million. Third quarter 2019 reported Gearing was 27.9% on an IFRS 16 basis, comparable with 23.5% on an IAS 17 basis. 

The impact of IFRS 16 is presented in Note 8 “Adoption of IFRS 16 Leases” and not addressed in the performance analysis sections of this results announcement.

Third quarter 2019 results financial documents

 

Third quarter 2019 dividend announcement

Third quarter 2019 dividend announcement

Ben van Beurden

CEO statement

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“This quarter we continued to deliver strong cash flow and earnings, despite sustained lower oil and gas prices, and chemicals margins. Our earnings reflect the resilience of our market-facing businesses and their ability to capitalise on market conditions, including very strong trading and optimisation results this quarter. 

Our intention to buy back $25 billion in shares and reduce net debt remains unchanged. The prevailing weak macroeconomic conditions and challenging outlook inevitably create uncertainty about the pace of reducing gearing to 25% and completing the share buyback programme within the 2020 timeframe.”

Webcast, presentation slides and transcript

Jessica Uhl, Chief Financial Officer of Royal Dutch Shell plc hosted live audio webcasts of the third quarter 2019 results on Thursday October 31, 2019.

Third quarter 2019 results media webcast

Third quarter 2019 results analysts webcast

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