Shell 4Q Earnings Miss Expectations -- Earnings Review
February 04 2021 - 6:57AM
Dow Jones News
By Jaime Llinares Taboada
Royal Dutch Shell PLC reported results for the fourth quarter
and the whole of 2020 on Thursday. Here's what you need to
know:
ADJUSTED EARNINGS ON A CCS BASIS: The Anglo-Dutch oil major made
earnings on a current cost of supplies basis excluding identified
items of $393 million for the fourth quarter, missing the $597
million market consensus--taken from Vara Research and based on 25
analysts. The metric is a figure similar to the net income that
U.S. oil companies report, but strips out exceptional items.
FULL-YEAR LOSS: Shell booked a $4.01 billion net loss in the
fourth quarter driven by exceptional costs such as impairments and
contract provisions, bringing the full-year loss to $21.68 billion.
This was lower than the $17.77 billion market forecast taken from
FactSet and based on 12 analysts' estimates.
WHAT WE WATCHED:
--INTEGRATED GAS: Unlike the wider group, the performance of
Shell's natural gas division improved in the fourth quarter of the
year. Adjusted earnings came in at $1.11 billion, beating the $1.00
billion market consensus--taken from Vara Research and based on 21
analysts--and up from $768 million in the third quarter. This was
achieved despite liquefied natural gas volumes falling 1.4%
quarter-on-quarter.
--DEBT REDUCTION: Shell's net debt increased to $75.39 billion
as of the end of the year from the $73.46 billion reported three
months earlier. The company blamed lower free cash flow generation
and lease additions. Shell in October set a target to reduce net
debt to $65 billion, before distributing 20%-30% of cash flow from
operations to shareholders through higher dividends and share
buybacks.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
February 04, 2021 06:42 ET (11:42 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Shell (LSE:RDSA)
Historical Stock Chart
From Aug 2024 to Sep 2024
Shell (LSE:RDSA)
Historical Stock Chart
From Sep 2023 to Sep 2024