Shell corrects fourth quarter and full year 2014 (FIFO) results, CCS earnings unchanged
Jan 30, 2015
Royal Dutch Shell plc announced its unaudited results for the fourth quarter and full year 2014 on 29 January 2015. Subsequent to making that announcement, a stock valuation error in its Downstream operations was discovered. The value of inventories in the condensed consolidated balance sheet, reported as $19,981 million, should be corrected to $19,701 million.
The fourth quarter and full year 2014 results of Royal Dutch Shell plc have been revised to take account of this stock valuation error. The impact is shown below.
Royal Dutch Shell’s fourth quarter and full year 2014 earnings, on a current cost of supplies (CCS) basis are unchanged. These earnings were $4.2 billion and $19.0 billion respectively.
Fourth quarter and full year 2014 CCS earnings excluding identified items are unchanged. These earnings were $3.3 billion and $22.6 billion respectively.
The CCS adjustment for Downstream increased from $3,390 million to $3,568 million in the fourth quarter 2014 and from $3,989 million to $4,167 million for the full year 2014.
As a consequence, fourth quarter 2014 Income attributable to Royal Dutch Shell plc shareholders reduced from $773 million to $595 million. Full year 2014 Income attributable to Royal Dutch Shell plc shareholders reduced from $15,052 million to $14,874 million.
The impact on end 2014 return on average capital employed on a reported income basis (7.1%) and gearing (12.2%) is immaterial.
Fourth quarter and full year 2014 Basic CCS earnings per share and per ADS are unchanged.
Basic earnings per share and diluted earnings per share both reduced from $0.12 per share to $0.09 per share in the fourth quarter 2014 and from $2.38 per share to $2.36 per share for the full year 2014.
The adjustment of the value of inventories leads to the correction of certain other line items in the unaudited condensed consolidated financial statements which are considered to be immaterial.
The revised amounts will be included in the 2014 Annual Report and Form 20-F.
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