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Fourth quarter 2018 summary of unaudited results

Summary of unaudited results

$ million

Q4 2018
Q3 2018
Q4 2017
% (1)
Definition
Full year 2018
Full year 2017
%
5,590
5,839
3,807
+47
Income/(loss) attributable to shareholders
23,352
12,977
+80
7,334
5,570
3,082
+138
CCS earnings attributable to shareholders
Note 2
23,833
12,081
+97
1,646
(54)
(1,221)
Of which: Identified items
A
2,429
(3,683)
5,688
5,624
4,303
+32
CCS earnings attributable to shareholders excluding identified items
21,404
15,764
+36
120
169
94
Add: CCS earnings attributable to non-controlling interest
531
418
5,808
5,793
4,397
+32
CCS earnings excluding identified items
21,935
16,182
+36
Of which:
2,363
2,292
1,636
Integrated Gas
9,399
5,268
1,881
1,886
1,650
Upstream
6,775
3,091
2,131
2,010
1,396
Downstream
7,567
9,082
(567)
(395)
(285)
Corporate
(1,806)
(1,259)
22,021
12,092
7,275
+203
Cash flow from operating activities
53,085
35,650
+49
(5,312)
(4,082)
(665)
Cash flow from investing activities
(13,659)
(8,029)
16,709
8,010
6,610
Free cash flow
H
39,426
27,621
0.68
0.70
0.46
+48
Basic earnings per share ($)
2.82
1.58
+78
0.89
0.67
0.37
+141
Basic CCS earnings per share ($)
B
2.88
1.47
+96
0.69
0.68
0.52
+33
Basic CCS earnings per share excl. identified items ($)
2.58
1.92
+34
0.47
0.47
0.47
-
Dividend per share ($)
1.88
1.88
-

(1)  Q4 on Q4 change.

Compared with the fourth quarter 2017, CCS earnings attributable to shareholders excluding identified items of $5.7 billion mainly benefited from higher realised oil, gas and LNG prices as well as stronger contributions from crude oil and LNG trading, partly offset by movements in deferred tax positions. Full year earnings of $21.4 billion also reflected higher realised oil, gas and LNG prices, partly offset by movements in deferred tax positions.

Cash flow from operating activities for the fourth quarter 2018 was $22.0 billion, which included positive working capital movements of $9.1 billion, mainly as a result of a fall in crude oil price and lower inventory levels. Excluding working capital movements, cash flow from operations of $12.9 billion mainly reflected increased earnings, compared with the fourth quarter 2017.

Total dividends distributed to shareholders in the quarter were $3.9 billion. In January 2019, the second tranche of the share buyback programme was completed, with 83.5 million A ordinary shares bought back for cancellation for an aggregate consideration of $2.5 billion. Today, Shell launches the next tranche of the share buyback programme, with a maximum aggregate consideration of $2.5 billion in the period up to and including April 29, 2019.

Additional performance measures

$ million

Q4 2018
Q3 2018
Q4 2017
% (1)
Definition
Full year 2018
Full year 2017
%
7,995
5,830
6,778
Capital investment
C
24,779
24,006
2,699
613
6,474
Divestments
D
7,102
17,340
3,788
3,596
3,756
+1
Total production available for sale (thousand boe/d)
3,666
3,664
-
59.89
68.21
55.28
+8
Global liquids realised price ($/b) (2)
63.85
49.00
+30
5.75
4.92
4.44
+30
Global natural gas realised price ($/thousand scf) (2)
5.13
4.33
+18
10,279
9,312
9,776
+5
Operating expenses
G
39,316
38,083
+3
10,147
9,248
9,839
+3
Underlying operating expenses
G
39,025
37,556
+4
9.4%
8.7%
5.8%
ROACE
E
9.4%
5.8%
7.6%
7.1%
5.6%
ROACE (CCS basis excluding identified items)
E
7.6%
5.6%
20.3%
23.1%
25.0%
Gearing (3)
F
20.3%
25.0%

(1) Q4 on Q4 change.

(2) Following a reassessment, third quarter 2018 (liquids realised price) and the four quarters of 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 December 31, 2017 was 24.8%.

Fourth quarter 2018 results financial documents

Ben van Beurden

CEO statement

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:

“Shell delivered a very strong financial performance in 2018, with cash flow from operations of $49.6 billion, excluding working capital movements. We delivered on our promises for the year, including the completion of the $30 billion divestment programme and starting up key growth projects while maintaining discipline on capital investment. We paid our entire dividend in cash, further reduced our debt and launched our share buyback programme, with $4.5 billion in shares repurchased so far.

We will continue with a strong delivery focus in 2019, with a disciplined approach to capital investment and growing both our cash flow and returns. Our strategy to deliver a world-class investment case is working.”

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