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Second quarter 2018 summary of unaudited results

    Summary of unaudited results

$ million

Q2 2018 Q1 2018 Q2 2017 1 Definition Half year 2018 Half year 2017 %
6,024 5,899 1,545 +290 Income/(loss) attributable to shareholders 11,923 5,083 +135
5,226 5,703 1,920 +172 CCS earnings attributable to shareholders Note 2 10,929 5,301 +106
535 302 (1,684) Of which: Identified items2 A 837 (2,057)
4,691 5,401 3,604 +30 CCS earnings attributable to shareholders excluding identified items 10,092 7,358 +37
121 121 110 Add: CCS earnings attributable to non-controlling interest 242 219
4,812 5,522 3,714 +30 CCS earnings excluding identified items 10,334 7,577 +36
Of which:
2,305 2,439 1,169 Integrated Gas 4,744 2,350
1,457 1,551 339 Upstream 3,008 879
1,660 1,766 2,529 Downstream 3,426 5,018
(610) (234) (323) Corporate (844) (670)
9,500 9,427 11,285 -16 Cash flow from operating activities 18,927 20,793 -9
29 (4,249) 872 Cash flow from investing activities (4,220) (3,452)
9,529 5,178 12,157 Free cash flow H 14,707 17,341
0.72 0.71 0.19 +279 Basic earnings per share ($) 1.44 0.62 +132
0.63 0.69 0.23 +174 Basic CCS earnings per share ($) B 1.32 0.65 +103
0.56 0.65 0.44 +27 Basic CCS earnings per share excl. identified items ($) 1.21 0.90 +34
0.47 0.47 0.47 - Dividend per share ($) 0.94 0.94 -

1  Q2 on Q2 change.

2 As revised for first quarter 2018, see Definition A.

Compared with the second quarter 2017, CCS earnings attributable to shareholders excluding identified items of $4.7 billion reflected increased contributions from Integrated Gas and Upstream, partly offset by lower earnings in Downstream.

Cash flow from operating activities for the second quarter 2018 was $9.5 billion, which included negative working capital movements of $2.1 billion, compared with $11.3 billion in the second quarter 2017, which included positive working capital movements of $2.5 billioni.

Total dividends distributed to shareholders in the quarter were $3.9 billion. Today, Shell starts a share buyback programme of at least $25 billion in the period 2018-2020, subject to further progress with debt reduction and oil price conditions. In the first tranche of this programme Shell enters into an irrevocable, non-discretionary arrangement to enable the purchase of A ordinary shares and/or B ordinary shares up to the maximum aggregate consideration of $2 billion over a period of 3 months.


i Revised from positive working capital movements of $2.3 billion. See Note 7 and Definition I.

 

Additional performance measures

$ million

Q2 2018 Q1 2018 Q2 2017 %1 Definition Half year 2018 Half year 2017 %
5,771 5,183 6,766 Capital investment C 10,954 11,486
2,502 1,288 9,472 Divestments D 3,790 9,501
3,442 3,839 3,495 -2 Total production available for sale (thousand boe/d) 3,639 3,622 -
66.09 60.66 45.62 +45 Global liquids realised price ($/b) 63.38 47.02 +35
4.86 4.95 4.30 +13 Global natural gas realised price ($/thousand scf)2 4.91 4.32 +14
10,006 9,719 9,548 +5 Operating expenses G 19,725 18,830 +5
9,844 9,786 9,339 +5 Underlying operating expenses G 19,630 18,520 +6
8.1% 6.4% 4.0% ROACE E 8.1% 4.0%
6.5% 6.1% 4.2% ROACE (CCS basis excluding identified items) E 6.5% 4.2%
23.6% 24.7% 25.8% Gearing3 F 23.6% 25.8%

1  Q2 on Q2 change.

2 First quarter 2018 and the four quarters of 2017 have been revised following a reassessment.

3 With effect from 2018, the net debt calculation has been amended (see Definition F). Gearing as previously published at June 30, 2017 was 25.3%.

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.

Second quarter 2018 results financial documents

Ben van Beurden

CEO statement

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Today we are taking another important step towards the delivery of our world-class investment case, with the launch of a $25 billion share buyback programme.

This move complements the progress we have made since the completion of the BG acquisition in 2016, to reshape our portfolio through a $30 billion divestment programme and new projects, to reduce net debt, and to turn off the scrip dividend.

Our financial framework remains unchanged. Our free cash flow outlook and the progress we have made to strengthen our balance sheet give us the confidence to start our share buyback programme.” 

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