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First quarter 2018 summary of unaudited results

    Summary of unaudited results

$ million

Definition Q1 2018 Q4 2017 Q1 2017 % 1
Income/(loss) attributable to shareholders 5,899 3,807 3,538 +67
CCS earnings attributable to shareholders Note 2 5,703 3,082 3,381 +69
Of which: Identified items A 381 (1,221) (373)
CCS earnings attributable to shareholders excluding identified items 5,322 4,303 3,754 +42
Add: CCS earnings attributable to non-controlling interest 121 94 109
CCS earnings excluding identified items 5,443 4,397 3,863 +41
Of which:
Integrated Gas 2,439 1,636 1,181
Upstream 1,551 1,650 540
Downstream 1,687 1,396 2,489
Corporate (234) (285) (347)
Cash flow from operating activities 9,427 7,275 9,508 -1
Cash flow from investing activities (4,249) (665) (4,324)
Free cash flow H 5,178 6,610 5,184
Basic earnings per share ($) 0.71 0.46 0.43 +65
Basic CCS earnings per share ($) B 0.69 0.37 0.41 +68
Basic CCS earnings per share excl. identified items ($) 0.64 0.52 0.46 +39
Dividend per share ($) 0.47 0.47 0.47 -

1  Q1 on Q1 change

Compared with the first quarter 2017, CCS earnings attributable to shareholders excluding identified items increased by $1.6 billion, mainly driven by higher contributions from Integrated Gas and Upstream, partly offset by lower earnings in Downstream.

Cash flow from operating activities for the first quarter 2018 was $9.4 billion, which included negative working capital movements of $0.9 billion, compared with $9.5 billion in the first quarter 2017, which included negative working capital movements of $1.6 billioni.

Total dividends distributed to shareholders in the quarter were $4.0 billion.


i Revised from negative working capital movements of $1.8 billion. See Note 7 and Definition I. Please refer to the full quarterly results announcement for Notes and Definitions.

 

Additional performance measures

$ million

Definition Q1 2018 Q4 2017 Q1 2017 %1
Capital investment C 5,183 6,778 4,720
Divestments D 1,288 6,474 29
Total production available for sale (thousand boe/d) 3,839 3,756 3,752 +2
Global liquids realised price ($/b) 60.66 55.28 48.36 +25
Global natural gas realised price ($/thousand scf) 4.86 4.40 4.29 +13
Operating expenses G 9,719 9,776 9,282 +5
Underlying operating expenses G 9,786 9,839 9,181 +7
ROACE E 6.4% 5.8% 4.0%
ROACE (CCS basis excluding identified items) E 6.0% 5.6% 3.3%
Gearing2 F 24.7% 25.0% 28.3%

1  Q1 on Q1 change

2 With effect from 2018, the net debt calculation has been amended (see Definition F). Gearing as previously published at December 31, 2017, and at March 31, 2017, was 24.8% and 27.2% respectively.

Changes to the Interim Financial Statements are described in Notes 1, 6 and 7, while revised definitions are explained in Definitions A, F and I. Please refer to the full quarterly results announcement for Definitions A through I, Note 1 and Note 2.

First quarter 2018 results financial documents

Ben van Beurden

CEO statement

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Shell’s strong earnings this quarter were underpinned by higher oil and gas prices, the continued growth and very good performance of our Integrated Gas business, and improved profitability in our Upstream business. Less favourable refining market conditions and lower contributions from trading impacted the earnings of our Downstream business.

We continue to upgrade our portfolio through performance improvement, new projects, divestments and the development of new businesses. Competitiveness and resilience – now and through the energy transition – are key features of our world-class investment case.

We have a strong financial framework. Our commitment to capital discipline is unchanged, we are making good progress with our $30 billion divestment programme and our outlook for free cash flow – which covered our cash dividend and interest this quarter and over the last year – is consistent with our intent to buy back at least $25 billion of our shares over the period 2018-2020.” 

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