Sunday, 3 May 2015

Royal Dutch Shell 1st qtr results

Royal Dutch Shell a global group of energy and petrochemical companies. I have a holding in my income portfolio (epic code: RDSB)

Shell announced their first quarter results on Thursday 30 April, the biggest effect on results was the substantial decline in oil prices since the peak in June 2014, with revenue down by -40.1% to $65.7bn.  Oil production was up 4%, gas production down 8% and liquefied natural gas production up 1%. 
CCS earnings excluding identified items (mainly divestment profits in 2015) were down -56.2% to $3.2bn.  CCS EPS excluding identified items decreased by -55.6% to $1.04 and reported EPS was $0.69 a -4.2% decrease.  A maintained dividend of $0.47 has been declared, which in Sterling, due to the stronger US Dollar, will appear as an increase for UK investors.  On a maintained dividend for the year and at the current exchange rate, Shell yields 5.9% on Friday's share price of 2098p. 
Free cash flow in the period was $0.5bn compared to $6.5bn last year, proceeds from the sale of investments added $2.2bn to this, but was still insufficient to pay for dividends and share buy-backs that totalled $3.3bn. 

Oil prices have improved from the first quarter; WTI crude oil has increased from below $45 in March to currently $59, this may help the current quarter, but there are planned maintenance programmes that will reduce production and of course those divestments and natural gas prices remain subdued.

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