Royal dutch shell plc (adr) posts disappointing q1 earnings; expects same for q2
Royal Dutch Shell plc (ADR) ( NYSE:RDS.A) reported its first quarter of fiscal year 2016 (1QFY16) financial results after market close yesterday. Noodles number The energy company recorded huge decline in revenue and earnings as low oil prices weighed down its financial performance.
The world’s leading oil and gas major recorded adjusted net earnings of $1.55 billion ($0.44 per ordinary share) compared to the net earnings of $3.25 billion ($1.03 per ordinary share) in the first quarter a year ago and $1.825 billion ($0.58 per ordinary share) in the preceding quarter.
The earnings, albeit, lower year-on-year (YoY), were significantly higher than consensus estimate. Noodles restaurante Street had expected the energy giant to post adjusted net income of $1.18 billion ($0.31 per ordinary share) for the quarter, and Shell managed to beat it by a significant 31.8%. Noodles and company cost Cost control measures adopted by Shell seem to have paid dividends, as lower operating cost helped the oil giant cope with unfavorable market conditions. Noodles abd company Recall that the company had started a cost cutting drive, after the merger with BG Group.
CCS earnings attributable to investors for the first three months of 2016 (1QFY16) totaled $0.8 billion, down from $4.8 billion in the same period last year. Noodles and company catering The CCS earnings attributable to shareholders, excluding identified corporate and non-controlling interest, totaled $1.6 billion in 1QFY16, down by a massive 58% YoY. Noodles and company thai hot pot Such steep decline owes a lot to lower oil, gas, and LNG prices and shrinking refining spreads.
The company’s operating revenues clocked in at $48.55 billion for the first three months of 2016 (1QFY16), down from $65.71 billion in the same period a year ago. Noodles and company troy The company missed consensus revenue estimate of $56.05 billion by 13.39%. Noodles and company 76th street The operating revenues during the quarter were also 16% lower on sequential basis.
Needless to say, the cash flows took a big hit, as has been the case with all oil and gas majors this season. Can you get noodles and company to go Shell’s cash flow from operating activities stood at $661 million, remarkably down by a staggering ten times from $7106 million in the same period a year ago. Noodles and company wheaton The cash flows have worsened considerably even on sequential basis, showing just how tough was 1QFY16.
Kt noodles menu Excluding negative working capital movements worth $3.9 billion, the cash flow from operations for 1QFY16 stood at $0.7 billion.
The company’s total expenditure for the period totaled $50.37 billion, down from $63 billion in the same period a year earlier, and from $60,417 million in the preceding quarter. Noodles and company nashua Annual operating expenses are trending towards $40 billion. Noodles and company greeley co The figure does not take into account cost of integrated gas, upstream, non-controlling interest, and downstream. Ingredients for noodles For 1QFY16, operating expenses were up by $0.3 billion when compared to the same period a year earlier.
On the operational front, oil and gas production for 1QFY16 was 3,661 thousand barrels of oil equivalent per day (BOED), up by 16% YoY. Noodles and company evanston The impact of BG post the merger was also seen in the production flow, which contributed a handy 522 thousand BOED. Noodles and company university ave LNG volume totaled 7.04 million tonnes during the quarter, up 14% YoY. Noodles and company corporate BG’s in LNG production was over 20% at 1.58 million tonnes.
Shedding light on leveraging, the company had $18,949 million in debt as at March 31st. Noodles and company appleton wi At the same date, the company’s gearing was 26.1% up by 12.4% at the end of the first quarter last year. Noodles and company email The increase mainly came after the oil giant BG acquisition, relating to the recognition of finance leases.
The return on average capital employed was negative 0.4%, significantly down from 7.1% for the same period last year. Noodles menu prices On CCS basis, excluding identified items, the average capital employed was 3.8% at the end of 1QFY16 down from 8.9% at the end of the same period in 2015.
Ben van Beurden, the CEO, stated that Shell’s integrated operations set it apart from others especially the company’s downstream and integrated gas businesses that have executed stronger-than-expected performance in the first quarter despite low oil prices. Noodles and company restaurant The oil crisis that struck in 2014 had an immensely adverse toll on oil companies, especially the oil giants, including Shell. Noodles and company tampa With prices down at $60 per barrel a year ago from $115 per barrel in mid-2014, companies suffered huge financial strain.
Currently, the West Texas Intermediate trades at $43.87 per barrel, while the Brent crude trades at $45.18 per barrel. Noodles and company employment With such low prices, companies are taking austerity measures, such as asset divestment and headcount reductions to combat low oil prices. Noodles and company menu and prices Likewise, the company has plans to slash around 2800 jobs post the merger with BG. House of noodles menu Already grappling with low crude oil prices, the Anglo Dutch company faces cash constraints as the merger wiped out more than $10 billion off, of its cash. Noodles and company naperville Cost cutting is thus aimed at better managing liquidity, especially in times when oil prices show no signs of heading north anytime soon.
The oil giant last week said that it will shut down BG’s offices in London and Aberdeen by the end of 2016. Noodles and company okemos Apart from cutting jobs, the company also announced that it would cut its capital spending for the group to $30 billion from the originally planned $33 billion. Noodles and company bozeman Shell had cancelled many projects last year including exploration project in the Alaskan Arctic Sea.
Shell’s asset divestment in the first quarter totaled $0.5 billion. Noodles and company niles The company plans to take corrective steps in the second quarter as well, by reducing spending levels to capture cost opportunities aimed at managing its financial framework. Noodles and companu The CEO believes that earnings would continue to be under pressure in the second quarter, as oil prices remain depressed.
Viewing the closure of merger with BG as a strength for the company’s strategy and an opportunity to simplify the company, the CEO stated: “The combination with BG is off to a strong start, as a result of detailed forward planning before the completion of the transaction. Noodles and company frederick This will likely result in accelerated delivery of the synergies from the acquisition, and at a lower cost than we originally set out. Working at noodles and company We will continue to manage spend, through dynamic decision-making across the organisation, taking advantage of opportunities from both the deflating market and the two companies coming together.”
The company spent $59 billion in capital investments in 1QFY16 out of which, $52.9 billion were related to the acquisition of gas giant, BG. Noodles and company woodbury Organic capital investment for 2016, is expected to be around $30 billion, down from $47 billion in 2014.
Despite cash crunch and falling profits, the company aims to maintain shareholder confidence. Noodles and company headquarters While many other peers have slashed their dividends to conserve cash amid the tough market conditions, Shell has maintained its dividend payout policy for the longest time. Noodles and company hudson wi Total dividends distributed in the first quarter amounted to $3.7 billion. Noodles and company new berlin For the first quarter, the company has announced dividends of $0.47 per share on common stock.