SHELL PLC
potential impact of related collateral payments or receipts.
Debt-related derivative financial instruments are a subset of the
derivative financial instrument assets and liabilities presented on the
balance sheet. Collateral balances are reported under "Trade and other
receivables" or "Trade and other payables" as appropriate.
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ROYAL DUTCH SHELL PLC 1ST QUARTER 2021
UNAUDITED RESULTS
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$ million Quarters
December 31,
March 31, 2021 2020 March 31, 2020
Current debt 14,541 16,899 15,767
Non-current debt 87,828 91,115 79,298
Total debt 102,369 108,014 95,065
Of which lease liabilities 28,177 28,419 29,290
Add: Debt-related derivative financial instruments:
net liability/(asset) (864) (1,979) 1,218
Add: Collateral on debt-related derivatives: net
liability/(asset) 732 1,181 (58)
Less: Cash and cash equivalents (30,985) (31,830) (21,811)
Net debt 71,252 75,386 74,413
Add: Total equity 166,953 158,537 183,379
Total capital 238,205 233,923 257,792
Gearing 29.9% 32.2% 28.9%
------------------------------------------------------ -------- --- ------- ---- -------- ---
F. Operating expenses
Operating expenses is a measure of Shell's cost management performance,
comprising the following items from the Consolidated Statement of
Income: production and manufacturing expenses; selling, distribution and
administrative expenses; and research and development expenses.
Underlying operating expenses is a measure aimed at facilitating a
comparative understanding of performance from period to period by
removing the effects of identified items, which, either individually or
collectively, can cause volatility, in some cases driven by external
factors.
Quarters $ million
Q1 2021 Q4 2020 Q1 2020
6,808 6,701 5,982 Production and manufacturing expenses
Selling, distribution and
2,462 2,751 2,393 administrative expenses
166 199 243 Research and development
9,436 9,652 8,618 Operating expenses
Of which identified items:
Redundancy and restructuring
(747) (371) (18) (charges)/reversal
-- (737) -- (Provisions)/reversal
35 -- -- Other
(712) (1,108) (18)
8,724 8,544 8,600 Underlying operating expenses
---------- --------- --------- --------------------------------------
G. Free cash flow
Free cash flow is used to evaluate cash available for financing
activities, including dividend payments and debt servicing, after
investment in maintaining and growing the business. It is defined as the
sum of "Cash flow from operating activities" and "Cash flow from
investing activities".
Cash flows from acquisition and divestment activities are removed from
Free cash flow to arrive at the Organic free cash flow, a measure used
by management to evaluate the generation of free cash flow without these
activities.
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ROYAL DUTCH SHELL PLC 1ST QUARTER 2021
UNAUDITED RESULTS
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Quarters $ million
Q1 2021 Q4 2020 Q1 2020
8,294 6,287 14,851 Cash flow from operating activities
(590) (5,406) (2,718) Cash flow from investing activities
7,704 882 12,133 Free cash flow
3,412 212 2,233 Less: Divestment proceeds (Reference I)
Add: Tax paid on divestments (reported under "Other
-- -- -- investing cash outflows")
Add: Cash outflows related to inorganic capital
89 202 404 expenditure1
4,381 871 10,304 Organic free cash flow2
---------- --------- --------- -------------------------------------------------------
1.Cash outflows related to inorganic capital expenditure includes
portfolio actions which expand Shell's activities through acquisitions
and restructuring activities as reported in capital expenditure lines in
the Consolidated Statement of Cash Flows.
2.Free cash flow less divestment proceeds, adding back outflows related
to inorganic expenditure.
H. Cash flow from operating activities excluding working capital
movements
Working capital movements are defined as the sum of the following items
in the Consolidated Statement of Cash Flows: (i) (increase)/decrease
in inventories, (ii) (increase)/decrease in current receivables, and
(iii) increase/(decrease) in current payables.
Cash flow from operating activities excluding working capital movements
is a measure used by Shell to analyse its operating cash generation over
time excluding the timing effects of changes in inventories and
operating receivables and payables from period to period.
Quarters $ million
Q1 2021 Q4 2020 Q1 2020
8,294 6,287 14,851 Cash flow from operating activities
(3,426) (1,809) 9,594 (Increase)/decrease in inventories
(6,829) (107) 6,314 (Increase)/decrease in current receivables
5,865 1,579 (8,430) Increase/(decrease) in current payables
(4,390) (337) 7,478 (Increase)/decrease in working capital
Cash flow from operating activities excluding working
12,683 6,624 7,373 capital movements
Of which:
3,653 2,195 3,352 Integrated Gas
4,702 2,890 3,718 Upstream
3,313 782 353 Oil Products
1,045 775 189 Chemicals
(30) (17) (239) Corporate
---------- --------- --------- ---------------------------------------------------------
I. Divestment proceeds
Divestment proceeds represent cash received from divestment activities
in the period. Management regularly monitors this measure as a key lever
to deliver sustainable cash flow.
Quarters $ million
Q1 2021 Q4 2020 Q1 2020
Proceeds from sale of property, plant and equipment
3,106 94 1,613 and businesses
Proceeds from joint ventures and associates from sale,
275 111 547 capital reduction and repayment of long-term loans(1)
31 7 73 Proceeds from sale of equity securities
3,412 212 2,233 Divestment proceeds
---------- ----------- ----------- ----------------------------------------------------------
1.As from 2021 renamed from 'Proceeds from sale of joint ventures and
associates'.
Page 21
ROYAL DUTCH SHELL PLC 1ST QUARTER 2021
UNAUDITED RESULTS
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J. Earnings before interest, taxes, depreciation and amortisation
The "Adjusted EBITDA (FIFO basis)" and "Adjusted EBITDA (CCS basis)"
measures are introduced with effect from January 1, 2021. Management
uses both measures to evaluate Shell's performance in the period and
over time.
We define "Adjusted EBITDA (FIFO basis)" as "Income/(loss) attributable
to Royal Dutch Shell plc shareholders" adjusted for identified items;
tax charge/(credit); depreciation, amortisation and depletion;
exploration well write-offs and net interest expense. We also use
"Adjusted EBITDA" on a CCS basis as the current cost of supplies
adjustment aims to remove the impact of price changes on our inventories
in our Oil Products and Chemicals segments, therefore enabling
comparisons over time.
Quarters $ million
Q1 2021 Q4 2020 Q1 2020
Income/(loss) attributable to Royal Dutch Shell plc
5,660 (4,014) (24) shareholders
Less: Identified items attributable to Royal Dutch
1,112 (4,871) (104) Shell plc shareholders
Add: Taxation charge/(credit) excluding tax impact
1,903 865 417 of identified items
Add: Depreciation, depletion and amortisation excluding
5,812 6,255 6,344 impairments
136 199 83 Add: Exploration well write-offs (MORE TO FOLLOW) Dow Jones Newswires
04-29-21 0215ET
