SHELL PLC
primarily driven by Adjusted Earnings before non-cash expenses including
depreciation, as well as favourable commodity derivatives impacts of
$867 million. This was partly offset by negative working capital
movements of $1,162 million.
Compared with the fourth quarter 2020, Integrated Gas Adjusted Earnings
primarily reflected higher realised prices for oil and LNG, partly
offset by higher operating expenses related to credit provisions.
Compared with the fourth quarter 2020, total oil and gas production
increased by 3% mainly due to the restart of production at the Prelude
floating LNG operations in Australia. LNG liquefaction volumes decreased
by 1% due to cargo timing, partly offset by the restart of production at
the Prelude floating LNG operations in Australia.
Compared with the first quarter 2020, Integrated Gas Adjusted Earnings
primarily reflected higher operating expenses related to credit
provisions, lower contributions from marketing and trading and
favourable deferred tax movements in the first quarter 2020.
Compared with the first quarter 2020, total oil and gas production
increased by 1% mainly due to new fields and lower maintenance. LNG
liquefaction volumes decreased by 8% mainly as a result of feedgas
constraints and maintenance activities, partly offset by higher
production at the Prelude floating LNG operations in Australia.
Page 3
ROYAL DUTCH SHELL PLC 1ST QUARTER 2021
UNAUDITED RESULTS
---------------------------------------
UPSTREAM
Quarters $ million
Q1 2021 Q4 2020 Q1 2020 %(1)
1,096 (2,091) (863) +152 Segment earnings
133 (1,344) (1,154) Of which: Identified items (Reference A)
963 (748) 291 +229 Adjusted Earnings
4,108 2,010 5,607 +104 Cash flow from operating activities
Cash flow from operating activities excluding working
4,702 2,890 3,718 +63 capital movements (Reference H)
1,534 1,654 2,521 Cash capital expenditure (Reference C)
1,579 1,537 1,730 +3 Liquids production available for sale (thousand b/d)
5,126 4,837 5,680 +6 Natural gas production available for sale (million
scf/d)
2,462 2,371 2,710 +4 Total production available for sale (thousand boe/d)
---------- --------- --------- -------- ---------------------------------------------------------
1. Q1 on Q4 change.
First quarter segment earnings were $1,096 million. This included a net
gain of $411 million related to the sale of assets, and a charge of $232
million related to the impact of the weakening Brazilian real on a
deferred tax position. These net gains are part of identified items (see
Reference A). Adjusted Earnings were $963 million.
Cash flow from operating activities for the quarter was $4,108 million,
primarily driven by Adjusted Earnings before non-cash expenses including
depreciation.
Compared with the fourth quarter 2020, Upstream Adjusted Earnings
reflected higher realised oil prices, lower depreciation, and the
absence of the unfavourable deferred tax movements which impacted the
fourth quarter 2020. These were partly offset by comparative adverse
currency effects.
Compared with the fourth quarter 2020, total production increased by 4%,
mainly due to favourable gas seasonal effects and the impact of
hurricanes in the US Gulf of Mexico in the fourth quarter 2020.
Compared with the first quarter 2020, Upstream Adjusted Earnings
reflected higher realised oil prices, and lower depreciation.
Compared with the first quarter 2020, total production decreased by 9%,
mainly due to the impact of higher maintenance and divestments. The
impact of field declines was largely offset by growth from new fields.
Page 4
ROYAL DUTCH SHELL PLC 1ST QUARTER 2021
UNAUDITED RESULTS
---------------------------------------
OIL PRODUCTS
Quarters $ million
Q1 2021 Q4 2020 Q1 2020 %(1)
650 (1,775) 2,211 +137 Segment earnings(2)
(227) (2,315) 849 Of which: Identified items (Reference A)
877 540 1,363 +62 Adjusted Earnings(2)
Of which:
(105) (287) 158 +63 Refining & Trading(3)
982 828 1,205 +19 Marketing(3)
893 1,198 4,878 -25 Cash flow from operating activities
Cash flow from operating activities excluding working
3,313 782 353 +324 capital movements (Reference H)
668 1,310 580 Cash capital expenditure (Reference C)
1,751 1,940 2,397 -10 Refinery processing intake (thousand b/d)
4,164 4,781 5,278 -13 Oil Products sales volumes (thousand b/d)
-------------- --------- --------- -------- ---------------------------------------------------------
1. Q1 on Q4 change.
2. Earnings are presented on a CCS basis (see Note 2).
3. As of Q1 2021, changes in the cost and activity allocation between
Marketing and Refining & Trading resulted in a net charge of $170
million to Refining & Trading, with an offsetting amount in Marketing.
This change does not impact consolidated Oil Products Adjusted Earnings.
First quarter segment earnings were $650 million. This included
redundancy and restructuring costs of $284 million, which are part of
identified items (see Reference A). Adjusted Earnings were $877 million.
Cash flow from operating activities for the first quarter 2021 was $893
million, primarily driven by Adjusted Earnings before depreciation and
by cost-of-sales adjustments, partly offset by negative working capital
movements of $2,420 million, and cash outflows for commodity derivatives
of $200 million.
Compared with the fourth quarter 2020, Oil Products Adjusted Earnings
reflected higher contributions from trading and optimisation, higher
realised refining margins, and lower operating expenses. These were
partly offset by the absence of the favourable deferred tax movements in
the fourth quarter 2020.
Oil Products sales volumes decreased due to the impact of further
lockdowns arising from COVID-19, and the Texas winter storm, compared
with the fourth quarter 2020.
--Refining & Trading Adjusted Earnings reflected higher realised
refining margins, and higher contributions from trading and
optimisation. These were partly offset by the absence of the favourable
deferred tax movements in the fourth quarter 2020.
--Marketing Adjusted Earnings reflected lower operating expenses.
Refinery utilisation remained at 72% compared with the fourth quarter
2020, with the impact of the Texas winter storm in the first quarter
2021, offset by the comparative effect of the Convent Refinery shutdown
in the fourth quarter 2020.
Compared with the first quarter 2020, Oil Products Adjusted Earnings
reflected lower realised refining and marketing margins due to a weaker
macroeconomic environment and the COVID-19 pandemic.
--Refining & Trading Adjusted Earnings reflected lower realised refining
margins, partly offset by lower depreciation.
--Marketing Adjusted Earnings reflected lower margins.
Refinery utilisation was 72% compared with 81% in the first quarter
2020, mainly due to lower demand and economic optimisation of the plants,
as well as the impact of the Texas winter storm.
Page 5
ROYAL DUTCH SHELL PLC 1ST QUARTER 2021
UNAUDITED RESULTS
---------------------------------------
CHEMICALS
Quarters $ million
Q1 2021 Q4 2020 Q1 2020 %(1)
689 367 146 +88 Segment earnings(2)
(41) (14) (2) Of which: Identified items (Reference A)
730 381 148 +92 Adjusted Earnings(2)
324 774 (178) -58 Cash flow from operating activities
Cash flow from operating activities excluding working
1,045 775 189 +35 capital movements (Reference H)
730 830 846 Cash capital expenditure (Reference C)
3,583 3,718 3,871 -4 Chemicals sales volumes (thousand tonnes)
----------- --------- --------- -------- ---------------------------------------------------------
1. Q1 on Q4 change.
2. Earnings are presented on a CCS basis (see Note 2).
First quarter segment earnings were $689 million.
Cash flow from operating activities for the quarter was $324 million,
primarily driven by Adjusted Earnings before depreciation as well as
negative working capital movements of $721 million.
Compared with the fourth quarter 2020, Chemicals Adjusted Earnings
reflected higher realised margins in base chemicals and intermediates
from a stronger price environment.
Chemicals manufacturing plant utilisation remained at 79% compared with
the fourth quarter 2020, with the impact of the Texas winter storm at
the Deer Park site offsetting comparatively fewer maintenance
activities.
(MORE TO FOLLOW) Dow Jones Newswires
04-29-21 0215ET
