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Thursday, April 30, 2020

-=Royal Dutch Shell (RDS.A) reported earnings on Thur 30 Apr 20 (b/o)

  • Royal Dutch Shell (RDS.A) cutting its dividend for the first time since World War II

Royal Dutch Shell cuts dividend following Q1 release
  • The Board of Royal Dutch Shell plc announced an interim dividend in respect of the first quarter of 2020 of $0.16 per A ordinary share and B ordinary share, reduced from the $0.47 dividend for the same quarter last year.
  • The pace and scale of the societal impact of COVID19 and the resulting deterioration in the macroeconomic and commodity price outlook is unprecedented. The duration of these impacts remains unclear with the expectation that the weaker conditions will likely extend beyond 2020. In response, Shell has taken decisive actions to reduce our spending and position our businesses to compete in the current lower commodity price environment and uncertain demand outlook. The Board of Royal Dutch Shell has taken the decision to reset its dividend to provide financial resilience and further flexibility to manage the uncertainty. Shell is taking the steps necessary to ensure that we are well-positioned for the eventual economic recovery.

  • Royal Dutch Shell beats by $0.09, misses on revs; provides outlook 
  • Reports Q1 (Mar) earnings of $0.37 per share, $0.09 better than the S&P Capital IQ Consensus of $0.28; revenues fell 28.3% year/year to $60.03 bln vs the $69.88 bln single analyst estimate.
    • As a result of COVID-19, there is significant uncertainty in the expected macroeconomic conditions with an expected negative impact on demand for oil, gas and related products. Furthermore, recent global developments and uncertainty in oil supply have caused further volatility in commodity markets. The second quarter 2020 outlook provides ranges for operational and financial metrics based on current expectations, but these are subject to change in the light of current evolving market conditions. Due to demand or regulatory requirements and/or constraints in infrastructure, Shell may need to take measures to curtail or reduce oil and/or gas production, LNG liquefaction as well as utilisation of refining and chemicals plants and similarly sales volumes could be impacted. These measures would likely have negative impacts on Shell's operational and financial metrics.
    • Integrated Gas production is expected to be approximately 840 - 890 thousand boe/d. LNG liquefaction volumes are expected to be approximately 7.4 - 8.2 million tonnes. More than 90% of the term contracts for LNG sales are oil price linked with a price lag of typically 3 - 6 months.
    • Upstream production is expected to be approximately 1,750 - 2,250 thousand boe/d.
    • Refinery utilisation is expected to be approximately 60% - 70%.
    • Oil Products sales volumes are expected to be approximately 3,000 - 4,000 thousand b/d.
    • Chemicals manufacturing plant utilisation is expected to be approximately 70% - 80%.
    • Chemicals sales volumes are expected to be approximately 3,500 - 4,100 thousand tonnes. 

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