Shell 3Q Earnings Came Ahead of Market Consensus -- Earnings Review
October 29 2020 - 6:47AM
Dow Jones News
By Jaime Llinares Taboada
Royal Dutch Shell PLC reported results for the third quarter on
Thursday. Here's what you need to know:
NET PROFIT: The Anglo-Dutch energy giant posted a net profit of
$489 million for the three months to Sept. 30, narrowing
significantly from $5.88 billion a year earlier. However, the
company's bottom-line performance beat the market consensus of a
$722 million loss, taken from FactSet and based on five analysts'
forecasts.
CCS EARNINGS EXCLUDING IDENTIFIED ITEMS: The adjusted profit on
a current cost of supply basis--a figure similar to the net income
that U.S. oil companies report, but strips out exceptional
items--came in at $955 million. This was also above market
expectations of $146 million, taken from Vara Research and based on
26 analyst estimates. Canadian bank RBC Capital Markets highlighted
strong performances from the integrated gas and marketing
segments.
WHAT WE WATCHED:
--UPSTREAM: Shell's upstream division--which explores, produces,
markets and transports hydrocarbons--booked a net loss of $1.11
billion, reflecting weak prices and lower production. In addition,
the $884 million adjusted loss was worse than the market consensus
of a $415 million loss, taken from Vara Research and based on 22
analysts' forecasts.
--COSTS: Shell reduced underlying operating expenses by $3.04
billion in the nine months to Sept. 30, whereas capital expenditure
totaled $12.3 billion during the January-September period. This
puts the company on track to comfortably meet its 2020 targets of
slashing operating costs by between $3 billion and $4 billion, and
keeping capex below $20 billion. "Our decisive actions taken
earlier in the year have solidified our operational and cash
delivery," Chief Executive Ben van Beurden said.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
October 29, 2020 06:32 ET (10:32 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Shell (LSE:SHEL)
Historical Stock Chart
From Aug 2024 to Sep 2024
Shell (LSE:SHEL)
Historical Stock Chart
From Sep 2023 to Sep 2024