CFO video comment

Third quarter 2018 summary of unaudited results

Summary of unaudited results

$ million

Q3 2018
Q2 2018
Q3 2017
% (1)
Definition
Nine months 2018
Nine months 2017
%
5,839
6,024
4,087
+43
Income/(loss) attributable to shareholders
17,762
9,170
+94
5,570
5,226
3,698
+51
CCS earnings attributable to shareholders
Note 2
16,499
8,999
+83
(54)
535
(405)
Of which: Identified items
A
783
(2,462)
5,624
4,691
4,103
+37
CCS earnings attributable to shareholders excluding identified items
15,716
11,461
+37
169
121
105
Add: CCS earnings attributable to non-controlling interest
411
324
5,793
4,812
4,208
+38
CCS earnings excluding identified items
16,127
11,785
+37
Of which:
2,292
2,305
1,282
Integrated Gas
7,036
3,632
1,886
1,457
562
Upstream
4,894
1,441
2,010
1,660
2,668
Downstream
5,436
7,686
(395)
(610)
(304)
Corporate
(1,239)
(974)
12,092
9,500
7,582
+59
Cash flow from operating activities
31,064
28,375
+9
(4,082)
29
(3,912)
Cash flow from investing activities
(8,347)
(7,364)
8,010
9,529
3,670
Free cash flow
H
22,717
21,011
0.70
0.72
0.50
+40
Basic earnings per share ($)
2.14
1.12
+91
0.67
0.63
0.45
+49
Basic CCS earnings per share ($)
B
1.99
1.10
+81
0.68
0.56
0.50
+36
Basic CCS earnings per share excl. identified items ($)
1.89
1.40
+35
0.47
0.47
0.47
-
Dividend per share ($)
1.41
1.41
-

(1)  Q3 on Q3 change.

CCS earnings attributable to shareholders excluding identified items were $5.6 billion, compared with $4.1 billion in the third quarter 2017. Earnings primarily benefited from increased realised oil, gas and LNG prices as well as higher contributions from trading in Integrated Gas, partly offset by lower margins in Downstream, higher deferred tax charges in Upstream and adverse currency exchange effects.

Cash flow from operating activities for the third quarter 2018 was $12.1 billion, which included negative working capital movements of $2.6 billion, compared with $7.6 billion in the third quarter 2017, which included negative working capital movements of $1.3 billioni. Excluding working capital movements, cash flow from operations of $14.7 billion mainly reflected increased earnings and higher dividends received.

Total dividends distributed to shareholders in the quarter were $3.9 billion. In October, the first tranche of the share buyback programme was completed, with almost 61 million A ordinary shares bought back for cancellation for an aggregate consideration of $2.0 billion. Today, Shell launches the second tranche of the share buyback programme, with a maximum aggregate consideration of $2.5 billion in the period up to and including January 28, 2019.


i Revised from negative working capital movements of $2.5 billion. See Note 7 and Definition I.

Additional performance measures

$ million

Q3 2018
Q2 2018
Q3 2017
% (1)
Definition
Nine months 2018
Nine months 2017
%
5,830
5,771
5,742
Capital investment
C
16,784
17,228
613
2,502
1,365
Divestments
D
4,403
10,866
3,596
3,442
3,657
-2
Total production available for sale (thousand boe/d)
3,625
3,634
-
68.38
66.24
47.06
+45
Global liquids realised price ($/b) (2)
65.19
47.03
+39
4.92
4.86
4.25
+16
Global natural gas realised price ($/thousand scf) (2)
4.91
4.30
+14
9,312
10,006
9,477
-2
Operating expenses
G
29,037
28,307
+3
9,248
9,844
9,197
+1
Underlying operating expenses
G
28,878
27,717
+4
8.7%
8.1%
5.0%
ROACE
E
8.7%
5.0%
7.1%
6.5%
4.6%
ROACE (CCS basis excluding identified items)
E
7.1%
4.6%
23.1%
23.6%
25.7%
Gearing (3)
F
23.1%
25.7%

(1) Q3 on Q3 change.

(2) Following a reassessment, second and first quarter 2018 (liquids realised price) and the four quarters 2017 (natural gas realised price) have been revised.

(3) With effect from 2018, the net debt calculation has been amended (see Definition F). Gearing as previously published at September 30, 2017 was 25.4%.

Third quarter 2018 results financial documents

Ben van Beurden

CEO statement

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Good operational delivery across all Shell businesses produced one of our strongest-ever quarters, with cash flow from operations of $14.7 billion, excluding working capital movements. Our strong financial performance allowed us to cover the cash dividend, interest payments, share buybacks and to further pay down debt. 

Our strategy remains on track. We have completed the first tranche of share buybacks, in line with our intention to purchase $25 billion of our shares by the end of 2020, and today I’m pleased to announce the second tranche. Meanwhile, the transformation of our portfolio continued, with further divestments of non-strategic assets and the final investment decision on LNG Canada.”


 

You may also be interested in

Share prices

Share price information and charts, calculators and historical share prices.

Annual Reports and publications

The 2017 Annual Report and Form 20-F, 2017 Sustainability Report and the 2017 Investors' Handbook are now available for online reading and as PDF download.