Shell 1Q Earnings Fall on Oil Price Decline
May 02 2019 - 2:54AM
Dow Jones News
By Oliver Griffin
Royal Dutch Shell PLC (RDSB.LN) on Thursday reported a 7.2% fall
in first-quarter earnings, attributing the decline to lower oil
prices and lower realized margins in its chemicals and refining
businesses.
The British-Dutch oil giant said its profit for the three months
ended March. 31 on a net current cost-of-supplies basis--a figure
similar to the net income that U.S. oil companies report--fell to
$5.29 billion, from $5.7 billion in the year-earlier period.
Adjusted net CCS earnings, which excludes certain items and is
Shell's preferred metric, came in at $5.3 billion, down 2% on the
first quarter of 2018 but beating guidance. A consensus estimate
from 23 analysts compiled by Vara Research forecast adjusted net
CCS earnings at $4.54 billion for the quarter.
Revenue in the three-month period fell 6.2% to $83.74 billion,
Shell said. Cash flow from operations fell to $ 8.63 billion, from
$9.47 billion in the first quarter of 2018.
Production during the first quarter fell 2% to an average of 3.8
million barrels of oil equivalent a day. While prices of liquefied
natural gas and gas rose during the quarter, total gas production
fell 12% following divestments made by the company, Shell said.
The company declared the fourth tranche of its buyback program.
It said it will buy a further $2.75 billion worth of shares in the
next tranche, up from $2.5 billion previously. The company launched
its $25 billion buyback program last year.
Shell maintained its quarterly dividend at 47 cents a share.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
May 02, 2019 02:39 ET (06:39 GMT)
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