Royal Dutch Shell - oil prices hit profits 2

Royal Dutch Shell – oil prices hit profits

[ad_1]

Royal Dutch Shell - oil prices hit profits

No recommendation

No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

Underlying profits fell 15% in the third quarter, to $4.9bn, as lower production and weaker prices, weighed on performance in the Upstream oil & gas business.

The scale of debt reduction and buyback plans remain unchanged, but the pace may be slower than previously expected given changing conditions. The quarterly dividend remains unchanged at 0.47 cents per share and the group announced the next $2.75bn tranche of its share buyback.

The shares fell 3.4% in early trading.

View the latest Shell share price and how to deal

Our View

HL view to follow.

Register for updates on Shell

Third Quarter Results

The Integrated Gas business saw underlying profits rise 17% to $2.7bn, driven by higher liquid natural gas (LNG) sales and LNG trading. Upstream profits fell 52% to $907m, as production declined 2% and oil and gas prices dropped substantially.

Profits rose 7% in the Downstream business to $2.2bn, with healthy growth in Oil Products, offset by a weaker Chemicals result – where the group contended with reduced production and lower margins.

Losses in the corporate centre hit $817m, up 106.8% year-on-year, as the group suffered from adverse currency movements and lower tax credits.

Quarterly cash flows from operations rose 1% to $12.3bn, with free cash flow of $10.1bn. Shell reported capital expenditure of $6.1bn in the quarter, up 3.3% on a year earlier.

Gearing, a measure of debt as a percentage of total capital, stood at 27.9% at the end of the quarter.

Find out more about Royal Dutch Shell B shares including how to invest

Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by Thomson Reuters. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.

[ad_2]

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *

×

Hello!

Click one of our representatives below to chat on WhatsApp or send us an email to [email protected]

 

× Order Via Whatsapp?