ROYAL DUTCH SHELL PL

RDSA
Real-time Estimate Quote. Real-time Estimate  - 11/23 02:53:59 pm
14.76EUR +4.70%

Royal Dutch Shell plc Royal Dutch Shell Plc 3rd -4-

10/29/2020 | 02:16am
  3,823      3,623      3,845       -1     Chemicals sales volumes (thousand tonnes)                    11,318      11,769      -4 
-------    -------    -------    --------  ---------------------------------------------------------  --------    --------    ------- 
 
 
   1.    Q3 on Q3 change. 
 
   2.    Earnings are presented on a CCS basis (see Note 2). 
 
   Third quarter segment earnings were $131 million, which reflected lower 
realised margins due to a weak price environment compounded by the 
COVID-19 pandemic compared with the third quarter 2019. This was offset 
by favourable deferred tax movements. Segment earnings included a charge 
of $104 million mainly due to a legal provision, which is part of 
identified items (see Reference A). 
 
   Compared with the third quarter 2019, Chemicals Adjusted Earnings of 
$227 million reflected lower realised margins due to a weak price 
environment compounded by the COVID-19 pandemic. This was offset by 
favourable deferred tax movements. 
 
   Cash flow from operating activities for the quarter was $335 million, 
primarily driven by Adjusted Earnings before depreciation and partly 
offset by negative working capital movements. 
 
   With effect from January 1, 2020, Shell discloses utilisation instead of 
availability to improve transparency on chemicals production volumes. 
Utilisation is defined as the actual usage of the plants as a percentage 
of the rated capacity. Chemicals manufacturing plant utilisation was 80% 
compared with 78% in the third quarter 2019, mainly due to a higher 
level of maintenance activities in 2019. 
 
   Nine Months segment earnings were $441 million, which reflected lower 
realised margins due to a weak price environment compounded by the 
COVID-19 pandemic compared with the first nine months of 2019. Segment 
earnings included a charge of $104 million due to a legal provision and 
redundancy and restructuring costs of $28 million. These net charges are 
part of identified items (see Reference A). 
 
   Compared with the first nine months of 2019, Chemicals Adjusted Earnings 
of $581 million reflected lower realised margins due to a weak price 
environment compounded by the COVID-19 pandemic. 
 
   Cash flow from operating activities for the first nine months of 2020 
was an inflow of $891 million, primarily driven by Adjusted Earnings 
before depreciation. This was partly offset by cost-of-sales adjustments 
for the first nine months of 2020. 
 
   With effect from January 1, 2020, Shell discloses utilisation instead of 
availability to improve transparency on chemicals production volumes. 
Utilisation is defined as the actual usage of the plants as a percentage 
of the rated capacity. Chemicals manufacturing plant utilisation was 81% 
compared with 78% in the first nine months of 2019, mainly due to higher 
maintenance activities in Asia and Europe in 2019, including the impact 
of strike actions in the Netherlands last year. 
 
   Page 10 
 
 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
 
 
 
 
 
CORPORATE 
           Quarters                                       $ million                                 Nine Months 
  Q3 2020    Q2 2020    Q3 2019                                                                      2020         2019 
  (739)      (805)      (663)      Segment earnings                                             (1,998)      (2,122) 
     52        (9)        154       Of which: Identified items (Reference A)                        578          185 
  (792)      (100%)      (817)      Adjusted Earnings                                            (2,576)      (2,307) 
    514      (791)        375      Cash flow from operating activities                              282        (276) 
   (33)        390       (80)      Cash flow from operating activities excluding working            118        (265) 
                                   capital movements (Reference H) 
-------    -------    -------    -----------------------------------------------------------  ---------    --------- 
 
 
   Third quarter segment earnings were an expense of $739 million. This 
included a gain of $48 million from the impact of the weakening 
Brazilian real on financing positions, which is part of identified items 
(see Reference A). 
 
   Adjusted Earnings were an expense of $792 million, reflecting higher 
operating expenses, largely offset by favourable currency exchange rate 
effects and higher tax credits, compared with the third quarter 2019. 
 
   Nine Months segment earnings were an expense of $1,998 million. This 
included a gain of $578 million from the impact of the weakening 
Brazilian real on financing positions, which is part of identified items 
(see Reference A). 
 
   Adjusted Earnings were an expense of $2,576 million, reflecting adverse 
currency exchange rate effects and lower interest expenses, compared 
with the first nine months of 2019. 
 
   OUTLOOK FOR THE FOURTH QUARTER 2020 
 
   As a result of COVID-19, there continues to be significant uncertainty 
in the macroeconomic conditions with an expected negative impact on 
demand for oil, gas and related products. Furthermore, global 
developments and uncertainty in oil supply have caused volatility in 
2020 in commodity markets. The fourth 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. Such measures will likely have a variety of impacts 
on our operational and financial metrics. 
 
   Integrated Gas production is expected to be approximately 830 - 870 
thousand boe/d. LNG liquefaction volumes are expected to be 
approximately 7.9 - 8.5 million tonnes. 
 
   Upstream production is expected to be approximately 2,300 - 2,500 
thousand boe/d. 
 
   Refinery utilisation is expected to be approximately 69% - 77%. 
 
   Oil Products sales volumes are expected to be approximately 4,000 - 
5,000 thousand b/d. 
 
   Chemicals manufacturing plant utilisation is expected to be 
approximately 77% - 85%. 
 
   Chemicals sales volumes are expected to be approximately 3,500 - 3,900 
thousand tonnes. 
 
   Corporate Adjusted Earnings are expected to be a net expense of 
approximately $800 - $875 million in the fourth quarter 2020 and a net 
expense of approximately $3,200 - $3,500 million for the full year 2020. 
This excludes the impact of currency exchange rate effects. 
 
   Page 11 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   FORTHCOMING EVENTS 
 
   Fourth quarter 2020 and full year results and dividends are scheduled to 
be announced on February 4, 2021. First quarter 2021 results and 
dividends are scheduled to be announced on April 29, 2021. Second 
quarter 2021 and half year results and dividends are scheduled to be 
announced on July 29, 2021. Third quarter 2021 results and dividends are 
scheduled to be announced on October 28, 2021. 
 
   The Shell Strategy Day is scheduled to take place on February 11, 2021. 
 
   Page 12 
 
 
 
 
 
 
ROYAL DUTCH SHELL PLC 3RD QUARTER 2020 
UNAUDITED RESULTS 
--------------------------------------- 
 
 
 
   UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF INCOME 
              Quarters                                       $ million                                Nine Months 
   Q3 2020       Q2 2020     Q3 2019                                                                   2020         2019 
  44,021        32,504      86,592    Revenue(1)                                                  136,554      260,871 
     461         (161)         769    Share of profit of joint ventures and associates              1,154        2,885 
     234           148       2,180    Interest and other income                                       458        3,285 
  44,717        32,491      89,541    Total revenue and other income                              138,167      267,041 
  27,276        18,093      63,900    Purchases                                                    88,582      192,413 
   5,496         5,822       6,002    Production and manufacturing expenses                        17,299       19,191 
   2,366         2,370       2,429    Selling, distribution and administrative expenses             7,130        7,662 
     233           232         219    Research and development                                        708          656 
     222           723         644    Exploration                                                   1,239        1,389 
   7,689        28,089       6,815    Depreciation, depletion and amortisation(2)                  42,871       19,464 
     992         1,070       1,161    Interest expense                                              3,181        3,572 
  44,275        56,398      81,169    Total expenditure                                           161,009      244,346 
     442      (23,907)       8,372    Income/(loss) before taxation                              (22,842)       22,695 
   (104)       (5,806)       2,348    Taxation charge/(credit)                                    (5,265)        7,351 
     546      (18,101)       6,024    Income/(loss) for the period(1)                            (17,578)       15,344 
      57            30         145    Income/(loss) attributable to non-controlling interest           88          466 
                                      Income/(loss) attributable to Royal Dutch Shell plc 
     489      (18,131)       5,879     shareholders                                              (17,666)       14,878 
    0.06        (2.33)        0.73    Basic earnings per share ($)(3)                              (2.27)         1.84 

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10-29-20 0315ET

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