Unic Press UK: Royal Dutch Shell says its 2016 second quarter profit illustrates a decline of circa seventy-two [72] per cent – due to lower oil prices – when compared to the 2015 second quarter.
Shell publishes Q2 2016 results – clean CCS earnings $1.045bn, down 72% from $3.7bn in Q2 2015. #ShellResults
— Shell (@Shell) July 28, 2016
CEO Ben van Beurden: “Lower oil prices are still a significant challenge across the business, particularly in the Upstream.” #ShellResults
— Shell (@Shell) July 28, 2016
Shell: Second quarter 2016 summary of unaudited results
- Following the acquisition on February 15, 2016, BG Group plc (“BG”) has been consolidated within Royal Dutch Shell’s results.
- Royal Dutch Shell’s second quarter 2016 CCS earnings attributable to shareholders were $0.2 billion compared with $3.4 billion for the same quarter a year ago.
- Second quarter 2016 CCS earnings attributable to shareholders excluding identified items were $1.0 billion compared with $3.8 billion for the second quarter 2015, a decrease of 72%.
- Compared with the second quarter 2015, CCS earnings attributable to shareholders excluding identified items were impacted by the decline in oil, gas and LNG prices, the depreciation step-up resulting from the BG acquisition, weaker refining industry conditions, and increased taxation. Earnings benefited from increased production volumes from BG assets.
- Second quarter 2016 basic CCS earnings per share excluding identified items decreased by 78% versus the second quarter 2015.
- Cash flow from operating activities for the second quarter 2016 was $2.3 billion, which included negative working capital movements of $2.5 billion.
- Total dividends distributed to shareholders in the quarter were $3.7 billion, of which $1.2 billion were settled by issuing 50.5 million A shares under the Scrip Dividend Programme.
- Gearing at the end of the second quarter 2016 was 28.1% versus 12.7% at the end of the second quarter 2015. This increase mainly reflects the impact of the acquisition of BG.
- A second quarter 2016 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (“ADS”).
