SHELL PLC
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ROYAL DUTCH SHELL PLC 1ST QUARTER
2021 UNAUDITED RESULTS
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SUMMARY OF UNAUDITED RESULTS
Quarters $ million
Q1 2021 Q4 2020 Q1 2020 %(1) Reference
Income/(loss)
attributable to
5,660 (4,014) (24) +241 shareholders
CCS earnings
attributable to
4,345 (4,478) 2,756 +197 shareholders Note 2
3,234 393 2,860 +724 Adjusted Earnings(2) A
Cash flow from operating
8,294 6,287 14,851 +32 activities
Cash flow from investing
(590) (5,406) (2,718) activities
7,704 882 12,133 Free cash flow G
3,974 5,503 4,970 Cash capital expenditure C
9,436 9,652 8,618 -2 Operating expenses F
Underlying operating
8,724 8,544 8,600 +2 expenses F
(4.7)% (6.8)% 4.6% ROACE (Net income basis) D
ROACE (CCS basis
excluding identified
3.0% 2.9% 6.1% items) D
71,252 75,386 74,413 Net debt E
29.9% 32.2% 28.9% Gearing E
Total production
available for sale
3,489 3,371 3,719 +4 (thousand boe/d)
Basic earnings per share
0.73 (0.52) 0.00 +240 ($)
Adjusted Earnings per
0.42 0.05 0.37 +740 share ($) B
0.1735 0.1665 0.16 +4 Dividend per share ($)
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1. Q1 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).
First quarter 2021 income attributable to Royal Dutch Shell plc
shareholders was $5.7 billion, which included net gains on sale of
assets of $1.4 billion and gains of $0.4 billion due to the fair value
accounting of commodity derivatives, partly offset by redundancy and
restructuring charges of $0.5 billion, mainly related to the
restructuring plan named Reshape.
Adjusted Earnings for the quarter were $3.2 billion. Cost of supplies
adjustment attributable to Royal Dutch Shell plc shareholders for the
first quarter 2021 was negative $1.3 billion. The Texas winter storm had
an impact on our operations and had an aggregate adverse impact of
around $0.2 billion on Adjusted Earnings.
Cash flow from operating activities for the first quarter 2021 was $8.3
billion, which included negative working capital movements of $4.4
billion. Cash flow from investing activities for the quarter was an
outflow of $0.6 billion, driven mainly by capital expenditure and partly
offset by proceeds from sale of property, plant and equipment and
businesses.
Compared with the fourth quarter 2020, current quarter Adjusted Earnings
reflected higher realised oil and LNG prices, chemicals and refining
margins, Oil Products trading contributions and lower depreciation.
Compared with the first quarter 2020, current quarter Adjusted Earnings
reflected higher realised oil prices and chemicals margins partly offset
by lower realised refining and marketing margins.
At the end of the first quarter 2021, net debt was $71.3 billion,
compared with $75.4 billion at the end of the fourth quarter 2020,
mainly driven by free cash flow generation in the quarter. Gearing was
29.9% at the end of the first quarter 2021, compared with 32.2% at the
end of the fourth quarter 2020, mainly driven by net debt reduction,
earnings and remeasurements of pensions.
Dividends declared to Royal Dutch Shell plc shareholders for the quarter
amount to $0.1735 per share, an increase of around 4% from the last
quarter.
With effect from the first quarter 2021, business performance analysis
of the current quarter compared with the previous quarter is introduced,
which will replace, starting from the second quarter 2021, business
performance
ROYAL DUTCH SHELL PLC 1ST QUARTER 2021
UNAUDITED RESULTS
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analysis compared with the same quarter of the previous year. This
change is introduced to enable better understanding of our business
performance sequentially from quarter to quarter.
Supplementary financial and operational disclosure and a separate press
release for this quarter are available at www.shell.com/investors1. With
effect from the first quarter 2021, new disclosures are included in
these supplementary financial and operational disclosures to improve
understanding of our businesses. See Reference J for reconciliations of
new Additional Performance (Non-GAAP) Measures introduced in these
disclosures.
1. Not incorporated by reference.
FIRST QUARTER 2021 PORTFOLIO DEVELOPMENTS
Integrated Gas
In March 2021, QGC Common Facilities Company Pty Ltd, a wholly-owned
subsidiary of Shell, completed the sale of a 26.25% interest in the
Queensland Curtis LNG (QCLNG) Common Facilities to Global Infrastructure
Partners Australia for $2.5 billion, following the receipt of regulatory
approval.
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.
In February 2021, an agreement was reached with publicly listed Canadian
energy company Crescent Point Energy Corp. to sell the Duvernay shale
light oil position in Alberta, Canada. The transaction completed on
April 1, 2021. The consideration received consisted of $533 million in
cash and 50 million shares in Crescent Point Energy common stock (TSX:
CPG) valued at $208 million based on the closing price on March 31,
2021.
In March 2021, Shell Egypt and one of its affiliates signed an agreement
with a consortium made up of subsidiaries of Cheiron Petroleum
Corporation and Cairn Energy plc to acquire Shell's upstream assets in
Egypt's Western Desert for a base consideration of $646 million and
additional payments of up to $280 million between 2021 and 2024,
contingent on the oil price and the results of further exploration. The
transaction is subject to government and regulatory approvals and is
expected to complete in the second half of 2021.
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ROYAL DUTCH SHELL PLC 1ST QUARTER 2021
UNAUDITED RESULTS
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PERFORMANCE BY SEGMENT
INTEGRATED GAS
Quarters $ million
Q1 2021 Q4 2020 Q1 2020 %(1)
2,527 20 1,812 +12,638 Segment earnings
1,112 (1,089) (331) Of which: Identified items (Reference A)
1,415 1,109 2,143 +28 Adjusted Earnings
2,491 2,203 3,986 +13 Cash flow from operating activities
Cash flow from operating activities excluding working
3,653 2,195 3,352 +66 capital movements (Reference H)
1,015 1,664 882 Cash capital expenditure (Reference C)
170 156 162 +9 Liquids production available for sale (thousand b/d)
Natural gas production available for sale (million
4,621 4,555 4,596 +1 scf/d)
967 942 955 +3 Total production available for sale (thousand boe/d)
8.16 8.21 8.88 -1 LNG liquefaction volumes (million tonnes)
15.80 16.89 19.00 -6 LNG sales volumes (million tonnes)
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1. Q1 on Q4 change.
First quarter segment earnings were $2,527 million. This included gains
on sale of assets of $997 million and gains of $263 million due to the
fair value accounting of commodity derivatives. These gains are part of
identified items (see Reference A). Adjusted Earnings for the quarter
were $1,415 million. Net financial impact from the Texas winter storm
was limited as positive trading margins were offset by higher operating
expenses ($0.4 billion post-tax) related to provisions for counterparty
credit risk.
Cash flow from operating activities for the quarter was $2,491 million, (MORE TO FOLLOW) Dow Jones Newswires
04-29-21 0215ET
