SHELL PLC
TIDMRDSA TIDMRDSB
ROYAL DUTCH SHELL PLC 4TH QUARTER 2020 AND FULL
YEAR UNAUDITED RESULTS
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SUMMARY OF UNAUDITED RESULTS
Quarters $ million Full year
Q4 2020 Q3 2020 Q4 2019 %(1) Reference 2020 2019 %
Income/(loss)
attributable to
(4,014) 489 965 -516 shareholders (21,680) 15,842 -237
CCS earnings
attributable to
(4,478) 177 871 -614 shareholders Note 2 (19,922) 15,270 -230
393 955 2,931 -87 Adjusted Earnings(2) A 4,846 16,462 -71
Cash flow from operating
6,287 10,403 10,267 -39 activities 34,105 42,178 -19
Cash flow from investing
(5,406) (2,833) (4,862) activities (13,277) (15,779)
882 7,571 5,405 Free cash flow G 20,828 26,399
5,503 3,737 6,883 Cash capital expenditure C 17,827 23,919
Underlying operating
8,544 7,854 9,993 -15 expenses F 32,502 36,993 -12
(6.8)% (4.9)% 6.7% ROACE (Net income basis) D (6.8)% 6.7%
ROACE (CCS basis
excluding identified
2.9% 3.9% 6.9% items) D 2.9% 6.9%
75,386 73,463 79,093 Net debt E 75,386 79,093
32.2% 31.4% 29.3% Gearing E 32.2% 29.3%
Total production
available for sale
3,371 3,081 3,763 -10 (thousand boe/d) 3,386 3,665 -8
Basic earnings per share
(0.52) 0.06 0.12 -533 ($) (2.78) 1.97 -241
Adjusted Earnings per
0.05 0.12 0.37 -86 share ($) B 0.62 2.04 -70
0.1665 0.1665 0.47 -65 Dividend per share ($) 0.6530 1.88 -65
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1. Q4 on Q4 change.
2. Adjusted Earnings is defined as income/(loss) attributable to
shareholders plus cost of supplies adjustment (see Note 2) and excluding
identified items (see Reference A).
Income attributable to Royal Dutch Shell plc shareholders amounted to a
loss of $4.0 billion for the fourth quarter 2020, which included
post-tax impairment charges of $2.7 billion and charges of $1.1 billion
mainly due to onerous contract provisions. Fourth quarter 2020 results
reflected lower realised prices for oil and LNG as well as lower
production volumes and realised refining margins compared with the
fourth quarter 2019. This was partly offset by lower operating expenses
and higher chemicals margins.
Cost of supplies adjustment attributable to Royal Dutch Shell plc
shareholders for the fourth quarter 2020 was negative $0.5 billion.
Adjusted Earnings were $0.4 billion for the fourth quarter 2020,
reflecting lower realised prices for oil and LNG as well as lower
production volumes and realised refining margins compared with the
fourth quarter 2019. This was partly offset by lower operating expenses
and higher chemicals margins.
Cash flow from operating activities for the fourth quarter 2020 was $6.3
billion, which included cash outflows from commodity derivatives of $0.9
billion and negative working capital movements of $0.3 billion. Cash
flow from investing activities for the quarter was an outflow of $5.4
billion, driven mainly by capital expenditure.
Net debt was $75.4 billion at the end of the fourth quarter 2020,
compared with $73.5 billion at the end of the third quarter 2020, mainly
driven by lower free cash flow generation and by lease additions, partly
offset by favourable foreign currency exchange translation differences.
Gearing was 32.2% at the end of the fourth quarter 2020, compared with
31.4% at the end of the third quarter 2020, mainly driven by increased
net debt and reduced earnings, partly offset by favourable foreign
currency exchange translation differences and a reduction in pensions
deficit.
Total dividends distributed to Royal Dutch Shell plc shareholders in the
quarter were $1.3 billion. The Board expects that the first quarter 2021
interim dividend will be US$0.1735 per share, an increase of 4% over
the US dollar dividend for the fourth quarter 2020.
ROYAL DUTCH SHELL PLC 4TH QUARTER 2020 AND FULL YEAR
UNAUDITED RESULTS
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Supplementary financial and operational disclosure and a separate press
release for this quarter are available at www.shell.com/investor1.
1. Not incorporated by reference.
Page 4
FOURTH QUARTER 2020 PORTFOLIO DEVELOPMENTS
Integrated Gas
During the quarter, QGC Common Facilities Company Pty Ltd, a
wholly-owned subsidiary of Shell, announced that it has agreed to the
sale of a 26.25% interest in the Queensland Curtis LNG Common Facilities
to Global Infrastructure Partners Australia for US$2.5 billion. The
transaction is subject to regulatory approval in Australia and customary
conditions and is expected to complete in the first half of 2021.
Upstream
In January 2021, Shell completed the sale of its 30% interest in Oil
Mining Lease 17 in the Eastern Niger Delta, and associated
infrastructure, to TNOG Oil and Gas Limited, a related company of Heirs
Holdings Limited and Transnational Corporation of Nigeria Plc, for a
consideration of $533 million. A total of $453 million was paid by
completion with the balance to be paid over an agreed period.
Page 2
ROYAL DUTCH SHELL PLC 4TH QUARTER 2020 AND FULL YEAR
UNAUDITED RESULTS
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PERFORMANCE BY SEGMENT
INTEGRATED GAS
Quarters $ million Full year
Q4 2020 Q3 2020 Q4 2019 %(1) 2020 2019 %
20 (151) 1,897 -99 Segment earnings (6,278) 8,628 -173
(1,089) (920) (89) Of which: Identified items (Reference A) (10,661) (326)
1,109 768 1,986 -44 Adjusted Earnings 4,383 8,955 -51
2,203 2,323 3,457 -36 Cash flow from operating activities 11,175 15,311 -27
Cash flow from operating activities excluding working
2,195 2,396 4,017 -45 capital movements (Reference H) 10,814 14,828 -27
1,664 1,020 1,323 Cash capital expenditure (Reference C) 4,301 4,299
156 143 161 -3 Liquids production available for sale (thousand b/d) 153 156 -2
Natural gas production available for sale (million
4,555 4,067 4,578 0 scf/d) 4,396 4,442 -1
942 844 950 -1 Total production available for sale (thousand boe/d) 911 922 -1
8.21 7.80 9.21 -11 LNG liquefaction volumes (million tonnes) 33.25 35.55 -6
16.89 17.13 20.09 -16 LNG sales volumes (million tonnes) 69.67 74.45 -6
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1. Q4 on Q4 change.
Fourth quarter segment earnings were $20 million. This included a net
charge of $519 million due to the fair value accounting of commodity
derivatives and a charge of $481 million related to onerous contract
provisions. These net charges are part of identified items (see
Reference A).
Compared with the fourth quarter 2019, Integrated Gas Adjusted Earnings
of $1,109 million primarily reflected lower realised prices for LNG, oil
and gas and lower contributions from trading and optimisation, partly
offset by lower operating expenses.
Cash flow from operating activities for the quarter was $2,203 million, (MORE TO FOLLOW) Dow Jones Newswires
02-04-21 0216ET
