ROYAL DUTCH SHELL PLC 2ND QUARTER 2020 AND HALF YEAR UNAUDITED
RESULTS
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
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SUMMARY OF UNAUDITED RESULTS |
|
Quarters |
$ million |
|
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
%¹ |
|
Reference |
2020 |
|
2019 |
|
% |
(18,131 |
) |
(24 |
) |
2,998 |
|
-705 |
Income/(loss) attributable to shareholders |
|
(18,155 |
) |
8,999 |
|
-302 |
(18,377 |
) |
2,756 |
|
3,025 |
|
-707 |
CCS earnings attributable to shareholders |
Note 2 |
(15,620 |
) |
8,318 |
|
-288 |
638 |
|
2,860 |
|
3,462 |
|
-82 |
Adjusted Earnings² |
A |
3,498 |
|
8,763 |
|
-60 |
2,563 |
|
14,851 |
|
11,031 |
|
-77 |
Cash flow from operating activities |
|
17,415 |
|
19,661 |
|
-11 |
(2,320 |
) |
(2,718 |
) |
(4,166 |
) |
|
Cash flow from investing activities |
|
(5,039 |
) |
(8,788 |
) |
|
243 |
|
12,133 |
|
6,865 |
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Free cash flow |
G |
12,376 |
|
10,873 |
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|
3,617 |
|
4,970 |
|
5,337 |
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Cash capital expenditure |
C |
8,587 |
|
10,938 |
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|
7,504 |
|
8,600 |
|
9,477 |
|
-21 |
Underlying operating expenses |
F |
16,105 |
|
18,343 |
|
-12 |
(2.9)% |
|
4.6% |
|
8.4% |
|
|
ROACE (Net income basis) |
D |
(2.9)% |
|
8.4% |
|
|
5.3% |
|
6.1% |
|
8.2% |
|
|
ROACE (CCS basis excluding identified items) |
D |
5.3% |
|
8.2% |
|
|
32.7% |
|
28.9% |
|
27.6% |
|
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Gearing |
E |
32.7% |
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27.6% |
|
|
3,379 |
|
3,719 |
|
3,583 |
|
-6 |
Total production available for sale (thousand boe/d) |
|
3,549 |
|
3,667 |
|
-3 |
(2.33 |
) |
0.00 |
|
0.37 |
|
-730 |
Basic earnings per share ($) |
|
(2.33 |
) |
1.11 |
|
-310 |
0.16 |
|
0.16 |
|
0.47 |
|
-66 |
Dividend per share ($) |
|
0.32 |
|
0.94 |
|
-66 |
|
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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). |
Income attributable to Royal Dutch Shell plc shareholders
was a loss of $18.1 billion for the second quarter 2020, which
included an impairment charge of $16.8 billion post-tax ($22.3
billion pre-tax), as a result of revised medium- and long-term
price and refining margin outlook assumptions in response to the
COVID-19 pandemic and macroeconomic conditions as well as energy
market demand and supply fundamentals. Second quarter 2020 results
reflected lower realised prices for oil, LNG and gas, lower
realised refining margins, Oil Products sales volumes and higher
well write-offs, compared with the second quarter 2019. This was
partly offset by very strong crude and oil products trading and
optimisation results as well as lower operating expenses.
Adjusted Earnings were $0.6 billion for the second quarter
2020, reflecting lower realised prices for oil, LNG and gas, lower
realised refining margins, Oil Products sales volumes and higher
well write-offs, compared with the second quarter 2019. This was
partly offset by very strong crude and oil products trading and
optimisation results as well as lower operating expenses.
Cash flow from operating activities for the second quarter
2020 was $2.6 billion, which included negative working capital
movements of $4 billion. Cash flow from investing activities for
the quarter was an outflow of $2.3 billion, driven mainly by
capital expenditure, partly offset by proceeds from divestments.
Gearing was 32.7% at the end of the second quarter 2020,
compared with 28.9% at the end of the first quarter 2020, mainly
driven by the impact of impairments and pension remeasurement, due
to actuarial assumption changes mainly caused by falling credit
spreads and increasing market estimates of future inflation, as
well as a net debt increase in the quarter. Total dividends
distributed to Royal Dutch Shell plc shareholders in the quarter
were $1.2 billion. Supplementary financial and operational
disclosure and a separate press release for this quarter are
available at
www.shell.com/investor1. 1. Not
incorporated by reference. Page 2
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
SECOND QUARTER 2020 PORTFOLIO
DEVELOPMENTS Integrated GasDuring
the quarter, all conditions were met for the Final Investment
Decision (FID) and contracts were awarded on a new LNG processing
unit, known as Train 7, at Nigeria LNG (Shell interest 25.6%),
which will add 8 million tonnes per annum (mtpa) of capacity to the
Bonny Island facility. Upstream During the
quarter, Shell reached an agreement to sell its Appalachia shale
gas position for $541 million, subject to closing adjustments, with
an effective date of January 1, 2020, and expected to close in the
third quarter 2020. Page 3
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
PERFORMANCE BY SEGMENT
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INTEGRATED GAS |
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Quarters |
$ million |
Half year |
Q2 2020 |
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Q1 2020 |
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Q2 2019 |
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%¹ |
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2020 |
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2019 |
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% |
(7,959 |
) |
1,812 |
|
1,340 |
|
-694 |
Segment earnings |
(6,147 |
) |
4,134 |
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-249 |
(8,321 |
) |
(331 |
) |
(386 |
) |
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Of which: Identified items (Reference A) |
(8,652 |
) |
(160 |
) |
|
362 |
|
2,143 |
|
1,726 |
|
-79 |
Adjusted Earnings |
2,506 |
|
4,294 |
|
-42 |
2,663 |
|
3,986 |
|
3,403 |
|
-22 |
Cash flow from operating activities |
6,649 |
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7,630 |
|
-13 |
2,871 |
|
3,352 |
|
2,824 |
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+2 |
Cash flow from operating activities excluding working capital
movements (Reference H) |
6,224 |
|
6,540 |
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-5 |
736 |
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882 |
|
738 |
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Cash capital expenditure (Reference C) |
1,618 |
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2,081 |
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|
151 |
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162 |
|
159 |
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-5 |
Liquids production available for sale (thousand b/d) |
157 |
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148 |
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+6 |
4,369 |
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4,596 |
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4,456 |
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-2 |
Natural gas production available for sale (million scf/d) |
4,482 |
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4,300 |
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+4 |
904 |
|
955 |
|
927 |
|
-2 |
Total production available for sale (thousand boe/d) |
930 |
|
889 |
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+5 |
8.36 |
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8.88 |
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8.66 |
|
-3 |
LNG liquefaction volumes (million tonnes) |
17.23 |
|
17.39 |
|
-1 |
16.65 |
|
19.00 |
|
17.95 |
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-7 |
LNG sales volumes (million tonnes) |
35.65 |
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35.46 |
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+1 |
Second quarter segment earnings were a loss of $7,959
million. This included a post-tax impairment charge of $8,151
million mainly related to the Queensland Curtis LNG and Prelude
floating LNG operations in Australia. Also included was a net
charge of $265 million due to the fair value accounting of
commodity derivatives. These net charges are part of identified
items (see Reference A). Compared with the second quarter 2019,
Integrated Gas Adjusted Earnings of $362 million primarily
reflected lower realised prices for oil, LNG and gas, unfavourable
movements in deferred tax positions and a charge of $403 million
reflecting well write-offs for the second quarter, partly offset by
lower operating expenses and higher contributions from trading and
optimisation. Cash flow from operating activities for the
quarter was $2,663 million, primarily driven by Adjusted Earnings
before non-cash expenses including depreciation, well write-offs
and deferred tax charges. Compared with the second quarter
2019, total production decreased by 2% mainly due to more
maintenance activities in Australia and lower demand, partly offset
by the transfer of the Rashpetco operations in Egypt from the
Upstream segment. LNG liquefaction volumes decreased mainly as a
result of cargo timing. Half year segment earnings were a
loss of $6,147 million. This included a post-tax impairment charge
of $8,210 million mainly related to the Queensland Curtis LNG and
Prelude floating LNG operations in Australia. Also included was a
net charge of $419 million due to the fair value accounting of
commodity derivatives. These net charges are part of identified
items (see Reference A). Compared with the first half 2019,
Integrated Gas Adjusted Earnings of $2,506 million primarily
reflected lower realised prices for oil, LNG and gas, higher well
write-offs and higher depreciation, partly offset by higher volumes
and lower operating expenses. Cash flow from operating
activities for the first half 2020 was $6,649 million, primarily
driven by Adjusted Earnings before non-cash expenses including
depreciation and well write-offs. Compared with the first
half 2019, total production increased by 5% mainly due to less
maintenance activities, new fields and field ramp-ups, as well as
the transfer of the Rashpetco operations in Egypt from the Upstream
segment. LNG liquefaction volumes decreased mainly as a result of
cargo timing and lower feedgas availability, partly offset by less
maintenance activities and new capacity. Page
4
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
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UPSTREAM |
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Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
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Q2 2019 |
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%¹ |
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2020 |
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2019 |
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% |
(6,721 |
) |
(863 |
) |
1,435 |
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-568 |
Segment earnings |
(7,584 |
) |
3,059 |
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-348 |
(5,209 |
) |
(1,154 |
) |
172 |
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Of which: Identified items (Reference A) |
(6,364 |
) |
149 |
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(1,512 |
) |
291 |
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1,263 |
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-220 |
Adjusted Earnings |
(1,220 |
) |
2,910 |
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-142 |
319 |
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5,607 |
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5,478 |
|
-94 |
Cash flow from operating activities |
5,926 |
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10,756 |
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-45 |
548 |
|
3,718 |
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5,251 |
|
-90 |
Cash flow from operating activities excluding working capital
movements (Reference H) |
4,265 |
|
10,515 |
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-59 |
1,876 |
|
2,521 |
|
2,321 |
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Cash capital expenditure (Reference C) |
4,397 |
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4,812 |
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1,609 |
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1,730 |
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1,636 |
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-2 |
Liquids production available for sale (thousand b/d) |
1,670 |
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1,651 |
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+1 |
4,673 |
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5,680 |
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5,640 |
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-17 |
Natural gas production available for sale (million scf/d) |
5,176 |
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6,249 |
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-17 |
2,415 |
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2,710 |
|
2,609 |
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-7 |
Total production available for sale (thousand boe/d) |
2,562 |
|
2,729 |
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-6 |
Second quarter segment earnings were a loss of $6,721
million. This included a post-tax impairment charge of $4,658
million mainly related to unconventional assets in North America,
assets offshore in Brazil and Europe, a project in Nigeria
(OPL245), and an asset in the US Gulf of Mexico. Also included were
a net charge of $187 million mainly related to a reduction in
discount rate used for provisions, as well as redundancy and
restructuring costs of $183 million. These net charges are part of
identified items (see Reference A).Compared with the second quarter
2019, Upstream Adjusted Earnings were a loss of $1,512 million
primarily reflecting lower realised oil and gas prices. Cash
flow from operating activities for the second quarter 2020 was $319
million, primarily driven by Adjusted Earnings before non-cash
expenses including depreciation, as well as the cash impact of the
settlement for the Lula unitisation in Brazil and cash effect of
tax. Compared with the second quarter 2019, total production
decreased by 7%, mainly due to the challenging macroeconomic
environment (which included OPEC+ restrictions and COVID-19-related
restrictions), the impact of divestments and lower production in
the NAM joint venture. Field ramp-ups in the Santos Basin, Brazil,
the US Gulf of Mexico and Permian, USA more than offset field
decline. Lower production volumes were offset by favourable timing
of entitlement liftings. Half year segment earnings were a
loss of $7,584 million. This included a post-tax impairment charge
of $5,074 million mainly related to unconventional assets in North
America, assets offshore in Brazil and Europe, a project in Nigeria
(OPL245), and an asset in the US Gulf of Mexico. Also included were
a net charge of $916 million related to the impact of the weakening
Brazilian real on a deferred tax position, and redundancy and
restructuring costs of $191 million. These net charges are part of
identified items (see Reference A).Compared with the first half
2019, Upstream Adjusted Earnings were a loss of $1,220 million
primarily reflecting lower realised oil and gas prices and lower
gas volumes. Cash flow from operating activities for the
first half 2020 was $5,926 million, primarily driven by Adjusted
Earnings before non-cash expenses including depreciation, as well
as positive working capital movements, cash effect of tax and the
settlement for the Lula unitisation in Brazil. Compared with
the first half 2019, total production decreased by 6%, mainly due
to the impact of divestments, lower production in the NAM joint
venture and the challenging macroeconomic environment (which
included OPEC+ restrictions and COVID-19-related restrictions).
Field ramp-ups in the Santos Basin, Brazil, the US Gulf of Mexico
and Permian, USA, more than offset field decline. Page
5
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
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OIL PRODUCTS |
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Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
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%¹ |
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2020 |
|
2019 |
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% |
(3,023 |
) |
2,211 |
|
1,299 |
|
-333 |
Segment earnings² |
(811 |
) |
2,523 |
|
-132 |
(5,433 |
) |
849 |
|
20 |
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Of which: Identified items (Reference A) |
(4,585 |
) |
(205 |
) |
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2,411 |
|
1,363 |
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1,278 |
|
+89 |
Adjusted Earnings² |
3,774 |
|
2,727 |
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+38 |
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Of which: |
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1,500 |
|
158 |
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52 |
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+2,763 |
Refining & Trading |
1,658 |
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473 |
|
+251 |
911 |
|
1,205 |
|
1,225 |
|
-26 |
Marketing |
2,116 |
|
2,254 |
|
-6 |
(362 |
) |
4,878 |
|
1,268 |
|
-129 |
Cash flow from operating activities |
4,516 |
|
670 |
|
+574 |
2,430 |
|
353 |
|
2,081 |
|
+17 |
Cash flow from operating activities excluding working capital
movements (Reference H) |
2,783 |
|
4,670 |
|
-40 |
606 |
|
580 |
|
1,118 |
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Cash capital expenditure (Reference C) |
1,186 |
|
1,971 |
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|
1,944 |
|
2,397 |
|
2,632 |
|
-26 |
Refinery processing intake (thousand b/d) |
2,170 |
|
2,649 |
|
-18 |
4,041 |
³ |
5,278 |
³ |
6,608 |
|
-39 |
Oil Products sales volumes (thousand b/d) |
4,659 |
³ |
6,538 |
|
-29 |
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2. |
Earnings are presented on a CCS
basis (See Note 2). |
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3. |
With effect from the first
quarter 2020, the reporting of Oil Products sales volumes has
changed (See Note 2). Sales volumes would be 4,742 thousand b/d in
the second quarter 2020 on a comparable basis with 2019. |
Second quarter segment earnings were a loss of $3,023
million. This included a post-tax impairment charge of $4,027
million, as a result of revised medium- and long-term price outlook
assumptions in response to the energy market demand and supply
fundamentals as well as the COVID-19 pandemic and macroeconomic
conditions. Also included were a net charge of $1,257 million due
to the fair value accounting of commodity derivatives, and
redundancy and restructuring costs of $118 million. These net
charges are part of identified items (see Reference A). Compared
with the second quarter 2019, Oil Products Adjusted Earnings of
$2,411 million for the quarter reflected very strong contributions
from crude and oil products trading and optimisation as well as
lower operating expenses. This was partly offset by lower realised
refining margins and lower marketing sales volumes due to the weak
macroeconomic environment and COVID-19 pandemic. Cash flow
from operating activities for the second quarter 2020 was an
outflow of $362 million, primarily driven by Adjusted Earnings
before depreciation, as well as negative working capital movements
and cash outflows from commodity derivatives. With effect
from the first quarter 2020, certain Oil Products contracts are no
longer included in sales volumes (see Note 2). Excluding this
impact, Oil Products sales volumes decreased due to lower refining
& trading and marketing sales volumes, compared with the second
quarter 2019.
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▪ |
Refining & Trading Adjusted
Earnings reflected very strong contributions from crude and oil
products trading and optimisation as well as lower operating
expenses. This was partly offset by lower realised refining
margins, compared with the second quarter 2019. |
With effect from the first quarter 2020, Shell discloses
utilisation instead of availability to improve transparency on
refinery production volumes. Utilisation is defined as the actual
usage of the plants as a percentage of the rated capacity. Refinery
utilisation was 70% compared with 76% in the second quarter 2019,
mainly due to lower demand and economic optimisation.
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▪ |
Marketing Adjusted Earnings
reflected lower sales volumes, partly offset by lower operating
expenses, compared with the second quarter 2019. |
Half year segment earnings were a loss of $811 million.
This included a post-tax impairment charge of $4,088 million, as a
result of revised medium- and long-term price outlook assumptions
in response to the energy market demand and supply fundamentals as
well as the COVID-19 pandemic and macroeconomic conditions. Also
included were a net charge of $291 million due to the fair value
accounting of commodity derivatives, and redundancy and
restructuring costs of $117 million. These net charges are part of
identified items (see Reference A). Page 6
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
Compared with the first half 2019, Oil Products Adjusted
Earnings of $3,774 million reflected very strong contributions from
crude and oil products trading and optimisation as well as lower
operating expenses. This was partly offset by lower realised
refining margins and lower marketing sales volumes due to the weak
macroeconomic environment and COVID-19 pandemic. Cash flow
from operating activities for the first half 2020 was $4,516
million, primarily driven by Adjusted Earnings before depreciation,
and positive working capital movements. This was partly offset by
cost-of-sales adjustments for the first half 2020. With
effect from the first quarter 2020, certain Oil Products contracts
are no longer included in sales volumes (see Note 2). Excluding
this impact, Oil Products sales volumes decreased due to lower
refining & trading and marketing sales volumes, compared with
the first half 2019.
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▪ |
Refining & Trading Adjusted
Earnings reflected very strong contributions from crude and oil
products trading and optimisation as well as lower operating
expenses. This was partly offset by lower realised refining
margins, compared with the first half 2019. |
With effect from the first quarter 2020, Shell discloses
utilisation instead of availability to improve transparency on
refinery production volumes. Utilisation is defined as the actual
usage of the plants as a percentage of the rated capacity. Refinery
utilisation was 75% compared with 78% in the first half 2019,
mainly due to lower demand and economic optimisation.
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▪ |
Marketing Adjusted Earnings
reflected lower sales volumes, partly offset by lower operating
expenses and higher realised global commercial and retail margins,
compared with the first half 2019. |
Page 7
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
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CHEMICALS |
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|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
%¹ |
|
2020 |
|
2019 |
|
% |
164 |
|
146 |
|
(107 |
) |
+253 |
Segment earnings² |
311 |
|
345 |
|
-10 |
(41 |
) |
(2 |
) |
(239 |
) |
|
Of which: Identified items (Reference A) |
(43 |
) |
(237 |
) |
|
206 |
|
148 |
|
132 |
|
+56 |
Adjusted Earnings² |
354 |
|
582 |
|
-39 |
734 |
|
(178 |
) |
1,268 |
|
-42 |
Cash flow from operating activities |
556 |
|
1,257 |
|
-56 |
304 |
|
189 |
|
508 |
|
-40 |
Cash flow from operating activities excluding working capital
movements (Reference H) |
492 |
|
1,037 |
|
-52 |
369 |
|
846 |
|
1,079 |
|
|
Cash capital expenditure (Reference C) |
1,215 |
|
1,907 |
|
|
3,623 |
|
3,871 |
|
3,787 |
|
-4 |
Chemicals sales volumes (thousand tonnes) |
7,494 |
|
7,924 |
|
-5 |
|
|
2. |
Earnings are presented on a CCS
basis (See Note 2). |
Second quarter segment earnings were $164 million. This
included redundancy and restructuring costs of $30 million, which
are part of identified items (see Reference A). Compared with the
second quarter 2019, Chemicals Adjusted Earnings of $206 million
reflected lower operating expenses, partly offset by lower realised
margins due to chemicals downcycle conditions compounded by
COVID-19 pandemic. Cash flow from operating activities for the
quarter was $734 million, primarily driven by Adjusted Earnings
before depreciation, as well as positive working capital movements
due to positive movements in receivables and payables. This was
partly offset by higher cost-of-sales adjustments for the quarter.
With effect from the first quarter 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 78% compared with 73%
in the second quarter 2019, mainly due to higher maintenance
activities in Asia and Europe in 2019, as well as the impact of
strike actions in the Netherlands last year. Half year
segment earnings were $311 million. This included redundancy and
restructuring costs of $31 million, which are part of identified
items (see Reference A). Compared with the first half 2019,
Chemicals Adjusted Earnings of $354 million reflected lower
realised margins due to chemicals downcycle conditions compounded
by COVID-19. Cash flow from operating activities was an
inflow of $556 million, primarily driven by Adjusted Earnings
before depreciation. This is partly offset by cost-of-sales
adjustments for the first half 2020. With effect from the
first quarter 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 half 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 8
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
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|
|
|
|
|
|
|
CORPORATE |
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
(805 |
) |
(453 |
) |
(789 |
) |
Segment earnings |
(1,258 |
) |
(1,460 |
) |
(9 |
) |
535 |
|
18 |
|
Of which: Identified items (Reference A) |
526 |
|
31 |
|
(796 |
) |
(989 |
) |
(806 |
) |
Adjusted Earnings |
(1,784 |
) |
(1,490 |
) |
(791 |
) |
559 |
|
(385 |
) |
Cash flow from operating activities |
(232 |
) |
(651 |
) |
390 |
|
(239 |
) |
(202 |
) |
Cash flow from operating activities excluding working capital
movements (Reference H) |
151 |
|
(185 |
) |
Second quarter segment earnings were an expense of $805 million.
This included a post-tax impairment charge of $5 million, as a
result of macroeconomic conditions. This net charge is part of
identified items (see Reference A). Adjusted Earnings were an
expense of $796 million, reflecting lower net interest expense,
largely offset by adverse currency exchange rate effects and
reduced tax credits, compared with the second quarter 2019.
Half year segment earnings were an expense of $1,258 million.
This included a gain of $530 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 $1,784 million, reflecting adverse currency exchange
rate effects, compared with the first half
2019. OUTLOOK FOR THE THIRD 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, recent global developments and uncertainty
in oil supply have caused further volatility in commodity markets.
The third 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 820
- 880 thousand boe/d. LNG liquefaction volumes are expected to be
approximately 7.6 - 8.2 million tonnes. Due to price-lag in
oil-linked LNG term contracts, the impact of low oil prices is
expected to become more significant in the third quarter.
Upstream production is expected to be approximately 2,100 -
2,400 thousand boe/d. Refinery utilisation is expected to be
approximately 68% - 76%. 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 78%
- 88%. Chemicals sales volumes are expected to be approximately
3,600 - 3,900 thousand tonnes. Corporate Adjusted Earnings
are expected to be a net expense of approximately $800 - 875
million in the third 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
9
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL
STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF INCOME |
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
32,504 |
|
60,029 |
|
90,544 |
|
Revenue¹ |
92,533 |
|
174,278 |
|
(161 |
) |
854 |
|
632 |
|
Share of profit of joint ventures and associates |
693 |
|
2,116 |
|
148 |
|
76 |
|
662 |
|
Interest and other income |
224 |
|
1,105 |
|
32,491 |
|
60,959 |
|
91,838 |
|
Total revenue and other income |
93,450 |
|
177,499 |
|
18,093 |
|
43,213 |
|
68,590 |
|
Purchases |
61,306 |
|
128,513 |
|
5,822 |
|
5,982 |
|
6,835 |
|
Production and manufacturing expenses |
11,803 |
|
13,189 |
|
2,370 |
|
2,393 |
|
2,881 |
|
Selling, distribution and administrative expenses |
4,763 |
|
5,233 |
|
232 |
|
243 |
|
225 |
|
Research and development |
475 |
|
437 |
|
723 |
|
294 |
|
439 |
|
Exploration |
1,018 |
|
745 |
|
28,089 |
|
7,093 |
|
6,699 |
|
Depreciation, depletion and amortisation² |
35,182 |
|
12,649 |
|
1,070 |
|
1,118 |
|
1,252 |
|
Interest expense |
2,188 |
|
2,411 |
|
56,398 |
|
60,336 |
|
86,920 |
|
Total expenditure |
116,735 |
|
163,176 |
|
(23,907 |
) |
623 |
|
4,917 |
|
Income/(loss) before taxation |
(23,284 |
) |
14,323 |
|
(5,806 |
) |
646 |
|
1,755 |
|
Taxation charge/(credit) |
(5,160 |
) |
5,003 |
|
(18,101 |
) |
(23 |
) |
3,162 |
|
Income/(loss) for the period¹ |
(18,124 |
) |
9,319 |
|
30 |
|
1 |
|
164 |
|
Income/(loss) attributable to non-controlling interest |
31 |
|
320 |
|
(18,131 |
) |
(24 |
) |
2,998 |
|
Income/(loss) attributable to Royal Dutch Shell plc
shareholders |
(18,155 |
) |
8,999 |
|
(2.33 |
) |
0.00 |
|
0.37 |
|
Basic earnings per share ($)³ |
(2.33 |
) |
1.11 |
|
(2.33 |
) |
0.00 |
|
0.37 |
|
Diluted earnings per share ($)³ |
(2.33 |
) |
1.10 |
|
|
|
1. |
See Note 2 “Segment
information”. |
|
|
2. |
Includes impairment charges of
$21,780 million (Q1 2020: $749 million; half year 2020: $22,529
million) mainly triggered by revision of Shell's mid- and long-term
commodity price and refining margin outlook. See Notes 1 and
7. |
|
|
3. |
See Note 3 “Earnings per share”. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME |
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
(18,101 |
) |
(23 |
) |
3,162 |
|
Income/(loss) for the period |
(18,124 |
) |
9,319 |
|
|
|
|
Other comprehensive income/(loss) net of tax: |
|
|
|
|
|
|
|
Items that may be reclassified to income in later periods: |
|
|
|
|
1,588 |
|
(3,935 |
) |
215 |
|
– Currency translation differences |
(2,347 |
) |
391 |
|
43 |
|
(28 |
) |
18 |
|
– Debt instruments remeasurements |
15 |
|
29 |
|
(137 |
) |
(152 |
) |
109 |
|
– Cash flow hedging gains/(losses) |
(289 |
) |
(348 |
) |
(99 |
) |
— |
|
(8 |
) |
– Net investment hedging gains/(losses) |
(99 |
) |
2 |
|
55 |
|
101 |
|
79 |
|
– Deferred cost of hedging |
156 |
|
105 |
|
30 |
|
(60 |
) |
(1 |
) |
– Share of other comprehensive income/(loss) of joint ventures and
associates |
(30 |
) |
(56 |
) |
1,481 |
|
(4,074 |
) |
413 |
|
Total |
(2,593 |
) |
125 |
|
|
|
|
Items that are not reclassified to income in later periods: |
|
|
|
|
(4,924 |
) |
1,756 |
|
(1,172 |
) |
– Retirement benefits remeasurements |
(3,167 |
) |
(2,646 |
) |
77 |
|
(137 |
) |
(73 |
) |
– Equity instruments remeasurements |
(60 |
) |
30 |
|
19 |
|
48 |
|
(6 |
) |
– Share of other comprehensive income/(loss) of joint ventures and
associates |
67 |
|
(5 |
) |
(4,828 |
) |
1,667 |
|
(1,251 |
) |
Total |
(3,160 |
) |
(2,621 |
) |
(3,347 |
) |
(2,407 |
) |
(839 |
) |
Other comprehensive income/(loss) for the period |
(5,753 |
) |
(2,496 |
) |
(21,448 |
) |
(2,430 |
) |
2,323 |
|
Comprehensive income/(loss) for the period |
(23,877 |
) |
6,823 |
|
43 |
|
(123 |
) |
180 |
|
Comprehensive income/(loss) attributable to non-controlling
interest |
(80 |
) |
358 |
|
(21,490 |
) |
(2,307 |
) |
2,143 |
|
Comprehensive income/(loss) attributable to Royal Dutch Shell plc
shareholders |
(23,797 |
) |
6,465 |
|
Page 10
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET |
$ million |
|
|
|
June 30, 2020 |
|
December 31, 2019 |
|
Assets |
|
|
Non-current assets |
|
|
Intangible assets |
23,163 |
|
23,486 |
|
Property, plant and equipment |
213,100 |
|
238,349 |
|
Joint ventures and associates |
21,771 |
|
22,808 |
|
Investments in securities |
3,144 |
|
2,989 |
|
Deferred tax |
15,573 |
|
10,524 |
|
Retirement benefits¹ |
3,135 |
|
4,717 |
|
Trade and other receivables |
7,681 |
|
8,085 |
|
Derivative financial instruments² |
1,331 |
|
689 |
|
|
288,898 |
|
311,647 |
|
Current assets |
|
|
Inventories |
17,726 |
|
24,071 |
|
Trade and other receivables |
32,375 |
|
43,414 |
|
Derivative financial instruments² |
8,161 |
|
7,149 |
|
Cash and cash equivalents |
27,939 |
|
18,055 |
|
|
86,201 |
|
92,689 |
|
Total assets |
375,098 |
|
404,336 |
|
Liabilities |
|
|
Non-current liabilities |
|
|
Debt |
87,460 |
|
81,360 |
|
Trade and other payables |
2,731 |
|
2,342 |
|
Derivative financial instruments² |
1,452 |
|
1,209 |
|
Deferred tax |
11,743 |
|
14,522 |
|
Retirement benefits¹ |
15,881 |
|
13,017 |
|
Decommissioning and other provisions³ |
25,993 |
|
21,799 |
|
|
145,260 |
|
134,249 |
|
Current liabilities |
|
|
Debt |
17,530 |
|
15,064 |
|
Trade and other payables |
34,615 |
|
49,208 |
|
Derivative financial instruments² |
7,217 |
|
5,429 |
|
Taxes payable |
6,479 |
|
6,693 |
|
Retirement benefits |
391 |
|
419 |
|
Decommissioning and other provisions |
3,160 |
|
2,811 |
|
|
69,393 |
|
79,624 |
|
Total liabilities |
214,653 |
|
213,873 |
|
Equity attributable to Royal Dutch Shell plc shareholders |
157,156 |
|
186,476 |
|
Non-controlling interest⁴ |
3,289 |
|
3,987 |
|
Total equity |
160,445 |
|
190,463 |
|
Total liabilities and equity |
375,098 |
|
404,336 |
|
|
|
1. |
The change is mainly driven by a
decrease in the weighted average discount rate applied caused by
falling credit spreads and increasing market estimates of future
inflation. See Note 1. |
|
|
2. |
See Note 6 “Derivative financial
instruments and debt excluding lease liabilities”. |
|
|
3. |
The discount rate applied at
June 30, 2020 was 1.75% (December 31, 2019: 3.0%).
Compared with December 31, 2019, non-current decommissioning and
restoration provisions increased by $3,999 million as a result of
the change in the discount rate, to $25,993 million at June 30,
2020. |
|
|
4. |
The change is mainly related to
the non-controlling interest in Shell Midstream Partners, L.P.
(“SHLX”) following the completion of the sale of Shell's 79%
interest in the Mattox Pipeline Company LLC and certain logistics
assets at the Shell Norco Manufacturing Complex to SHLX. |
Page 11
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
|
Equity attributable to Royal Dutch Shell plc
shareholders |
|
|
$ million |
Share capital¹ |
Shares held in trust |
Other reserves² |
Retained earnings |
Total |
Non-controlling interest |
Total equity |
At January 1, 2020 |
657 |
|
(1,063 |
) |
14,451 |
|
172,431 |
|
186,476 |
|
3,987 |
|
190,463 |
|
Comprehensive income/(loss) for the period |
— |
|
— |
|
(5,642 |
) |
(18,155 |
) |
(23,797 |
) |
(80 |
) |
(23,877 |
) |
Transfer from other comprehensive income |
— |
|
— |
|
17 |
|
(17 |
) |
— |
|
— |
|
— |
|
Dividends³ |
— |
|
— |
|
— |
|
(4,718 |
) |
(4,718 |
) |
(178 |
) |
(4,896 |
) |
Repurchases of shares |
(6 |
) |
— |
|
6 |
|
(1,214 |
) |
(1,214 |
) |
— |
|
(1,214 |
) |
Share-based compensation |
— |
|
539 |
|
(324 |
) |
(231 |
) |
(16 |
) |
— |
|
(16 |
) |
Other changes in non-controlling interest |
— |
|
— |
|
— |
|
426 |
|
426 |
|
(440 |
) |
(14 |
) |
At June 30, 2020 |
651 |
|
(524 |
) |
8,508 |
|
148,521 |
|
157,156 |
|
3,289 |
|
160,445 |
|
At January 1, 2019 |
685 |
|
(1,260 |
) |
16,615 |
|
182,610 |
|
198,650 |
|
3,888 |
|
202,538 |
|
Comprehensive income/(loss) for the period |
— |
|
— |
|
(2,534 |
) |
8,999 |
|
6,465 |
|
358 |
|
6,823 |
|
Transfer from other comprehensive income |
— |
|
— |
|
(102 |
) |
102 |
|
— |
|
— |
|
— |
|
Dividends |
— |
|
— |
|
— |
|
(7,699 |
) |
(7,699 |
) |
(270 |
) |
(7,969 |
) |
Repurchases of shares |
(12 |
) |
— |
|
12 |
|
(5,021 |
) |
(5,021 |
) |
— |
|
(5,021 |
) |
Share-based compensation |
— |
|
842 |
|
(276 |
) |
(683 |
) |
(118 |
) |
— |
|
(118 |
) |
Other changes in non-controlling interest |
— |
|
— |
|
— |
|
1 |
|
1 |
|
1 |
|
2 |
|
At June 30, 2019 |
674 |
|
(419 |
) |
13,715 |
|
178,308 |
|
192,278 |
|
3,977 |
|
196,254 |
|
|
|
1. |
See Note 4 “Share capital”. |
|
|
2. |
See Note 5 “Other reserves”. |
|
|
3. |
The amount charged to retained
earnings is based on prevailing exchange rates on payment date.
|
Page 12
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS |
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
(23,907 |
) |
623 |
|
4,917 |
|
Income before taxation for the period |
(23,284 |
) |
14,323 |
|
|
|
|
Adjustment for: |
|
|
|
|
889 |
|
897 |
|
1,030 |
|
- Interest expense (net) |
1,786 |
|
1,926 |
|
28,089 |
|
7,093 |
|
6,699 |
|
- Depreciation, depletion and amortisation |
35,182 |
|
12,649 |
|
518 |
|
83 |
|
202 |
|
- Exploration well write-offs |
601 |
|
321 |
|
(128 |
) |
106 |
|
(379 |
) |
- Net (gains)/losses on sale and revaluation of non-current assets
and businesses |
(21 |
) |
(444 |
) |
161 |
|
(854 |
) |
(632 |
) |
- Share of (profit)/loss of joint ventures and associates |
(693 |
) |
(2,116 |
) |
610 |
|
531 |
|
1,217 |
|
- Dividends received from joint ventures and associates |
1,141 |
|
1,961 |
|
(3,713 |
) |
9,594 |
|
(61 |
) |
- (Increase)/decrease in inventories |
5,881 |
|
(2,902 |
) |
3,959 |
|
6,314 |
|
308 |
|
- (Increase)/decrease in current receivables |
10,273 |
|
(1,117 |
) |
(4,226 |
) |
(8,430 |
) |
321 |
|
- Increase/(decrease) in current payables |
(12,655 |
) |
1,104 |
|
837 |
|
(171 |
) |
(480 |
) |
- Derivative financial instruments |
665 |
|
(1,589 |
) |
293 |
|
(91 |
) |
30 |
|
- Retirement benefits |
203 |
|
52 |
|
392 |
|
(102 |
) |
8 |
|
- Decommissioning and other provisions |
290 |
|
(294 |
) |
(480 |
) |
579 |
|
(39 |
) |
- Other |
98 |
|
(13 |
) |
(730 |
) |
(1,321 |
) |
(2,110 |
) |
Tax paid |
(2,051 |
) |
(4,199 |
) |
2,563 |
|
14,851 |
|
11,031 |
|
Cash flow from operating activities |
17,415 |
|
19,661 |
|
(3,436 |
) |
(4,263 |
) |
(5,150 |
) |
Capital expenditure |
(7,699 |
) |
(10,272 |
) |
(161 |
) |
(559 |
) |
(160 |
) |
Investments in joint ventures and associates |
(720 |
) |
(601 |
) |
(20 |
) |
(147 |
) |
(26 |
) |
Investments in equity securities |
(167 |
) |
(65 |
) |
211 |
|
1,613 |
|
644 |
|
Proceeds from sale of property, plant and equipment and
businesses |
1,824 |
|
822 |
|
423 |
|
547 |
|
102 |
|
Proceeds from sale of joint ventures and associates |
970 |
|
646 |
|
62 |
|
73 |
|
17 |
|
Proceeds from sale of equity securities |
135 |
|
288 |
|
118 |
|
192 |
|
220 |
|
Interest received |
310 |
|
457 |
|
1,174 |
|
855 |
|
592 |
|
Other investing cash inflows |
2,029 |
|
1,272 |
|
(691 |
) |
(1,028 |
) |
(404 |
) |
Other investing cash outflows |
(1,719 |
) |
(1,335 |
) |
(2,320 |
) |
(2,718 |
) |
(4,166 |
) |
Cash flow from investing activities |
(5,039 |
) |
(8,788 |
) |
90 |
|
321 |
|
145 |
|
Net increase/(decrease) in debt with maturity period within three
months |
412 |
|
55 |
|
|
|
|
Other debt: |
|
|
|
|
15,238 |
|
1,003 |
|
180 |
|
- New borrowings |
16,241 |
|
320 |
|
(7,113 |
) |
(2,723 |
) |
(2,848 |
) |
- Repayments |
(9,836 |
) |
(4,381 |
) |
(1,088 |
) |
(1,033 |
) |
(1,214 |
) |
Interest paid |
(2,121 |
) |
(2,329 |
) |
324 |
|
(81 |
) |
45 |
|
Derivative financial instruments |
243 |
|
— |
|
(32 |
) |
(8 |
) |
— |
|
Change in non-controlling interest |
(40 |
) |
(2 |
) |
|
|
|
Cash dividends paid to: |
|
|
|
|
(1,397 |
) |
(3,483 |
) |
(3,825 |
) |
– Royal Dutch Shell plc shareholders¹ |
(4,880 |
) |
(7,700 |
) |
(68 |
) |
(110 |
) |
(203 |
) |
– Non-controlling interest |
(178 |
) |
(271 |
) |
(216 |
) |
(1,486 |
) |
(2,142 |
) |
Repurchases of shares |
(1,702 |
) |
(4,396 |
) |
(18 |
) |
(182 |
) |
(7 |
) |
Shares held in trust: net sales/(purchases) and dividends
received |
(199 |
) |
(463 |
) |
5,721 |
|
(7,781 |
) |
(9,868 |
) |
Cash flow from financing activities |
(2,060 |
) |
(19,168 |
) |
164 |
|
(595 |
) |
4 |
|
Currency translation differences relating to cash and cash
equivalents |
(431 |
) |
24 |
|
6,128 |
|
3,756 |
|
(3,000 |
) |
Increase/(decrease) in cash and cash
equivalents |
9,884 |
|
(8,271 |
) |
21,811 |
|
18,055 |
|
21,470 |
|
Cash and cash equivalents at beginning of
period |
18,055 |
|
26,741 |
|
27,939 |
|
21,811 |
|
18,470 |
|
Cash and cash equivalents at end of period |
27,939 |
|
18,470 |
|
|
|
1. |
Cash dividends paid represents
the payment of net dividends (after deduction of withholding taxes
where applicable) and payment of withholding taxes on dividends
paid in the previous quarter. Cash dividends paid during the second
quarter 2020 is the total of the net dividend paid relating to the
first quarter 2020 gross dividend and withholding taxes paid in
relation to the fourth quarter 2019 gross dividend. |
Page 13
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS 1. Basis of
preparation These unaudited Condensed Consolidated Interim
Financial Statements ("Interim Statements") of Royal Dutch Shell
plc (“the Company”) and its subsidiaries (collectively referred to
as “Shell”) have been prepared in accordance with IAS 34 Interim
Financial Reporting as issued by the International Accounting
Standards Board (IASB) and as adopted by the European Union, and on
the basis of the same accounting principles as those used in the
Annual Report and Accounts (pages 190 to 238) and Form 20-F (pages
142 to 189) for the year ended December 31, 2019 as filed with
the Registrar for Companies for England and Wales and the US
Securities and Exchange Commission, respectively, and should be
read in conjunction with these filings. Going concern These
unaudited Interim Statements have been prepared on the going
concern basis of accounting. In assessing the appropriateness of
the going concern assumption, management have stressed Shell’s most
recent financial projections to incorporate a range of potential
future outcomes by considering Shell’s principal risks, further
potential downside pressures on commodity prices and cash
preservation measures, including reduced future operating costs,
capital expenditure and dividend distributions. This assessment
confirmed that Shell has adequate resources to continue its
operations for at least 12 months from the approval of the
unaudited Condensed Consolidated Interim Financial Statements.
Therefore, the Directors consider it appropriate to continue to
adopt the going concern basis of accounting in preparing these
unaudited Condensed Consolidated Interim Financial Statements. The
financial information presented in the unaudited Interim Statements
does not constitute statutory accounts within the meaning of
section 434(3) of the Companies Act 2006 (“the Act”). Statutory
accounts for the year ended December 31, 2019 were published
in Shell’s Annual Report and Accounts, a copy of which was
delivered to the Registrar of Companies for England and Wales, and
in Shell's Form 20-F. The auditor’s report on those accounts was
unqualified, did not include a reference to any matters to which
the auditor drew attention by way of emphasis without qualifying
the report and did not contain a statement under sections 498(2) or
498(3) of the Act.Key accounting considerations related to COVID-19
and the macroeconomic environment. Significant estimatesFuture
commodity price assumptions and management's view on the future
development of refining margins represent a significant estimate
and both were subject to change in the second quarter 2020,
resulting in the recognition of impairments. The tax impact of
impairments in the second quarter 2020 has been fully recognised in
deferred tax positions as of June 30, 2020. See Note 7. After
finalisation of the operating plan later in 2020 the overall
deferred tax position will be reviewed. The retirement
benefits remeasurements, recognised in the Consolidated Statement
of Comprehensive Income, reflect the decrease in the weighted
average discount rate applied caused by falling credit spreads and
increasing market estimates of future inflation. The discount
rate applied to provisions is reviewed on a regular basis.
Following the significant decrease in capital markets rates in 2020
the discount rate was reviewed and adjusted in the second quarter
2020. See footnote 3 to the Condensed Consolidated Balance
Sheet. 2. Segment information With
effect from 2020, Shell's reporting segments consist of Integrated
Gas, Upstream, Oil Products, Chemicals and Corporate, reflecting
the way Shell reviews and assesses its performance. Oil Products
and Chemicals businesses were previously reported under the
Downstream segment. Oil sands mining activities, previously
included in the Upstream segment, are reported under Oil Products.
Comparative information has been reclassified. Segment earnings are
presented on a current cost of supplies basis (CCS earnings), which
is the earnings measure used by the Chief Executive Officer for the
purposes of making decisions about allocating resources and
assessing performance. On this basis, the purchase price of volumes
sold during the period is based on the current cost of supplies
during the same period after making allowance for the tax effect.
CCS earnings therefore exclude the effect of changes in the oil
price on inventory carrying amounts. Sales between segments are
based on prices generally equivalent to commercially available
prices. Page 14
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
With effect from January 1, 2020, additional contracts are
classified as held for trading purposes and consequently revenue is
reported on a net rather than gross basis. The effect on revenue
for the second quarter 2020 is a reduction of $8,028 million (Q1
2020: $16,313 million).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INFORMATION BY SEGMENT |
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
|
|
|
Third-party revenue |
|
|
|
|
7,436 |
|
10,157 |
|
8,942 |
|
Integrated Gas |
17,593 |
|
20,582 |
|
1,177 |
|
2,344 |
|
2,346 |
|
Upstream |
3,521 |
|
4,647 |
|
21,596 |
|
44,297 |
|
75,837 |
|
Oil Products |
65,893 |
|
141,888 |
|
2,283 |
|
3,221 |
|
3,406 |
|
Chemicals |
5,504 |
|
7,138 |
|
12 |
|
11 |
|
13 |
|
Corporate |
22 |
|
24 |
|
32,504 |
|
60,029 |
|
90,544 |
|
Total third-party revenue¹ |
92,533 |
|
174,278 |
|
|
|
|
Inter-segment revenue² |
|
|
|
|
558 |
|
891 |
|
1,045 |
|
Integrated Gas |
1,449 |
|
2,137 |
|
4,117 |
|
6,476 |
|
8,827 |
|
Upstream |
10,592 |
|
18,359 |
|
1,082 |
|
1,851 |
|
1,950 |
|
Oil Products |
2,933 |
|
4,130 |
|
475 |
|
875 |
|
1,088 |
|
Chemicals |
1,350 |
|
2,054 |
|
— |
|
— |
|
— |
|
Corporate |
— |
|
— |
|
|
|
|
CCS earnings |
|
|
|
|
(7,959 |
) |
1,812 |
|
1,340 |
|
Integrated Gas |
(6,147 |
) |
4,134 |
|
(6,721 |
) |
(863 |
) |
1,435 |
|
Upstream |
(7,584 |
) |
3,059 |
|
(3,023 |
) |
2,211 |
|
1,299 |
|
Oil Products |
(811 |
) |
2,523 |
|
164 |
|
146 |
|
(107 |
) |
Chemicals |
311 |
|
345 |
|
(805 |
) |
(453 |
) |
(789 |
) |
Corporate |
(1,258 |
) |
(1,460 |
) |
(18,343 |
) |
2,854 |
|
3,177 |
|
Total |
(15,490 |
) |
8,601 |
|
|
|
1. |
Includes revenue from sources
other than from contracts with customers, which mainly comprises
the impact of fair value accounting of commodity derivatives.
Second quarter 2020 included income of $1,405 million (Q1 2020:
$6,686 million income; half year 2020: $8,091 million income). This
amount includes both the reversal of prior gains of $686 million
(Q1 2020: $317 million) related to sales contracts and prior losses
of $507 million (Q1 2020: $76 million) related to purchase
contracts that were previously recognised and where physical
settlement has taken place in the second quarter 2020. |
|
|
2. |
Comparative information for
inter-segment revenue for Upstream, Oil Products and Chemicals has
been revised to conform with reporting segment changes applicable
from 2020. Inter-segment revenue for Integrated Gas for the half
year 2019 has been revised from $1,989 million to amend for certain
intra-segment transactions previously reported as inter-segment
revenue. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME FOR THE PERIOD TO CCS
EARNINGS |
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
(18,131 |
) |
(24 |
) |
2,998 |
|
Income/(loss) attributable to Royal Dutch Shell plc
shareholders |
(18,155 |
) |
8,999 |
|
30 |
|
1 |
|
164 |
|
Income/(loss) attributable to non-controlling interest |
31 |
|
320 |
|
(18,101 |
) |
(23 |
) |
3,162 |
|
Income/(loss) for the period |
(18,124 |
) |
9,319 |
|
|
|
|
Current cost of supplies adjustment: |
|
|
|
|
(432 |
) |
3,774 |
|
30 |
|
Purchases |
3,342 |
|
(955 |
) |
98 |
|
(916 |
) |
1 |
|
Taxation |
(819 |
) |
237 |
|
92 |
|
19 |
|
(16 |
) |
Share of profit/(loss) of joint ventures and associates |
111 |
|
— |
|
(242 |
) |
2,876 |
|
15 |
|
Current cost of supplies adjustment |
2,634 |
|
(719 |
) |
|
|
|
of which: |
|
|
(246 |
) |
2,780 |
|
27 |
|
Attributable to Royal Dutch Shell plc shareholders |
2,535 |
|
(681) |
|
4 |
|
96 |
|
(12) |
|
Attributable to non-controlling interest |
100 |
|
(38) |
|
(18,343 |
) |
2,854 |
|
3,177 |
|
CCS earnings |
(15,490 |
) |
8,601 |
|
|
|
|
of which: |
|
|
|
|
(18,377 |
) |
2,756 |
|
3,025 |
|
CCS earnings attributable to Royal Dutch Shell plc
shareholders |
(15,620 |
) |
8,318 |
|
34 |
|
97 |
|
152 |
|
CCS earnings attributable to non-controlling interest |
131 |
|
282 |
|
Page 15
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
3. Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
Quarters |
|
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
(18,131 |
) |
(24 |
) |
2,998 |
|
Income/(loss) attributable to Royal Dutch Shell plc shareholders ($
million) |
(18,155 |
) |
8,999 |
|
|
|
|
Weighted average number of shares used as the basis for
determining: |
|
|
|
|
7,789.8 |
|
7,819.8 |
|
8,100.8 |
|
Basic earnings per share (million) |
7,804.8 |
|
8,126.3 |
|
7,789.8 |
|
7,819.8 |
|
8,153.7 |
|
Diluted earnings per share (million) |
7,804.8 |
|
8,182.1 |
|
4. Share capital
|
|
|
|
|
|
|
|
|
|
ISSUED AND FULLY PAID ORDINARY SHARES OF €0.07
EACH1 |
|
Number of shares |
Nominal value ($ million) |
|
A |
B |
A |
B |
Total |
At January 1, 2020 |
4,151,787,517 |
|
3,729,407,107 |
|
349 |
308 |
657 |
Repurchases of shares |
(50,548,018) |
|
(23,223,271) |
|
(4) |
(2) |
(6) |
At June 30, 2020 |
4,101,239,499 |
|
3,706,183,836 |
|
345 |
306 |
651 |
At January 1, 2019 |
4,471,889,296 |
|
3,745,486,731 |
|
376 |
309 |
685 |
Repurchases of shares |
(139,414,447) |
|
— |
|
(12) |
— |
(12) |
At June 30, 2019 |
4,332,474,849 |
|
3,745,486,731 |
|
365 |
309 |
674 |
|
|
1. |
Share capital at June 30,
2020 also included 50,000 issued and fully paid sterling deferred
shares of £1 each. |
At Royal Dutch Shell plc’s Annual General Meeting on
May 19, 2020 the Board was authorised to allot ordinary shares
in Royal Dutch Shell plc, and to grant rights to subscribe for, or
to convert, any security into ordinary shares in Royal Dutch Shell
plc, up to an aggregate nominal amount of €182.7 million
(representing 2,611 million ordinary shares of €0.07 each), and to
list such shares or rights on any stock exchange. This authority
expires at the earlier of the close of business on August 19,
2021, and the end of the Annual General Meeting to be held in 2021,
unless previously renewed, revoked or varied by Royal Dutch Shell
plc in a general meeting. 5. Other
reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER RESERVES |
$ million |
Merger reserve |
Share premium reserve |
Capital redemption reserve |
Share plan reserve |
Accumulated other comprehensive income |
Total |
At January 1, 2020 |
37,298 |
|
154 |
|
123 |
|
1,049 |
|
(24,173 |
) |
14,451 |
|
Other comprehensive income/(loss) attributable to Royal Dutch Shell
plc shareholders |
— |
|
— |
|
— |
|
— |
|
(5,642 |
) |
(5,642 |
) |
Transfer from other comprehensive income |
— |
|
— |
|
— |
|
— |
|
17 |
|
17 |
|
Repurchases of shares |
— |
|
— |
|
6 |
|
— |
|
— |
|
6 |
|
Share-based compensation |
— |
|
— |
|
— |
|
(324 |
) |
— |
|
(324 |
) |
At June 30, 2020 |
37,298 |
|
154 |
|
129 |
|
725 |
|
(29,798 |
) |
8,508 |
|
At January 1, 2019 |
37,298 |
|
154 |
|
95 |
|
1,098 |
|
(22,030 |
) |
16,615 |
|
Other comprehensive income/(loss) attributable to Royal Dutch Shell
plc shareholders |
— |
|
— |
|
— |
|
— |
|
(2,534 |
) |
(2,534 |
) |
Transfer from other comprehensive income |
— |
|
— |
|
— |
|
— |
|
(102 |
) |
(102 |
) |
Repurchases of shares |
— |
|
— |
|
12 |
|
— |
|
— |
|
12 |
|
Share-based compensation |
— |
|
— |
|
— |
|
(276 |
) |
— |
|
(276 |
) |
At June 30, 2019 |
37,298 |
|
154 |
|
107 |
|
821 |
|
(24,664 |
) |
13,715 |
|
Page 16
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
The merger reserve and share premium reserve were
established as a consequence of Royal Dutch Shell plc becoming the
single parent company of Royal Dutch Petroleum Company and The
“Shell” Transport and Trading Company, p.l.c., now The Shell
Transport and Trading Company Limited, in 2005. The merger reserve
increased in 2016 following the issuance of shares for the
acquisition of BG Group plc. The capital redemption reserve was
established in connection with repurchases of shares of Royal Dutch
Shell plc. The share plan reserve is in respect of equity-settled
share-based compensation plans. 6. Derivative
financial instruments and debt excluding lease liabilities
As disclosed in the Consolidated Financial Statements for the year
ended December 31, 2019, presented in the Annual Report and
Accounts and Form 20-F for that year, Shell is exposed to the risks
of changes in fair value of its financial assets and liabilities.
The fair values of the financial assets and liabilities are defined
as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market
participants at the measurement date. Methods and assumptions used
to estimate the fair values at June 30, 2020, are consistent with
those used in the year ended December 31, 2019, though the
carrying amounts of derivative financial instruments measured using
predominantly unobservable inputs have changed since that date. The
table below provides the comparison of the fair value with the
carrying amount of debt excluding lease liabilities, disclosed in
accordance with IFRS 7 Financial Instruments: Disclosures.
|
|
|
|
|
|
|
DEBT EXCLUDING LEASE LIABILITIES |
$ million |
June 30, 2020 |
|
December 31, 2019 |
|
Carrying amount |
75,918 |
|
65,887 |
|
Fair value¹ |
82,369 |
|
71,163 |
|
|
|
1. |
Mainly determined from the prices
quoted for these securities. |
Page 17
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
7. Impairments The impairment loss
in the second quarter 2020 was mainly triggered by revision of
Shell's mid- and long-term commodity price and refining margin
outlook reflecting the expected effects of the COVID-19 pandemic
and related macroeconomic as well as energy market demand and
supply fundamentals. Impairments losses of $16,842 million
post-tax ($22,332 million pre-tax, of which $21,780 million
recognised in depreciation, depletion and amortisation and $552
million recognised in share of profit of joint ventures and
associates) mainly related to Integrated Gas for $8,151 million
post-tax ($11,191 million pre-tax), mainly relating to the QGC
Integrated Gas asset and Prelude floating LNG both in Australia, to
Upstream for $4,658 million post-tax ($6,281 million pre-tax)
mainly related to two unconventional assets in North America, a
project in Nigeria (OPL245), two offshore projects in Brazil, four
offshore projects in Europe and an asset in the US Gulf of Mexico,
to Oil Products for $4,027 million post-tax ($4,851 million
pre-tax) mainly relating to three refineries in Europe and North
America, and to Corporate for $5 million post-tax ($9 million
pre-tax). For impairment testing purposes, the respective
carrying amounts of property, plant and equipment and intangible
assets were compared with their value in use. Cash flow projections
used in the determination of value in use were made using
management’s forecasts of commodity prices, market supply and
demand, potential costs associated with operational GHG emissions,
product margins including forecast refining margins and expected
production volumes. These cash flows were adjusted for the risks
specific to the assets, and therefore these risks were not included
in the determination of the discount rate applied. The nominal
pre-tax rate applied in the second quarter 2020 was 6% (2019: 6%).
Oil and gas price assumptions applied for impairment testing
in Integrated Gas and Upstream are reviewed and, where necessary,
adjusted on a periodic basis. Reviews include comparison with
available market data and forecasts that reflect developments in
demand such as global economic growth, technology efficiency,
policy measures. Factors impacting supply include consideration of
investment and resource potential, cost of development of new
supply, and behaviour of major resource holders. The near-term
commodity price assumptions applied in impairment testing in the
second quarter 2020 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commodity price assumptions [A] |
2020 |
|
2021 |
|
2022 |
|
2023 |
|
Brent crude oil ($/b) |
35 |
|
40 |
|
50 |
|
60 |
|
Henry Hub natural gas ($/MMBtu) |
1.75 |
|
2.50 |
|
2.50 |
|
2.75 |
|
[A] Money of the day. The long-term price assumptions
applied were $60 per barrel (/b) for Brent crude oil and $3.00 per
million British thermal units (/MMBtu) for Henry Hub natural gas,
both at real term 2020. Until 2019 management’s estimate of
longer-term refining margins in Oil Products was based on the
reversion to mean methodology, unless a fundamental shift in
markets had been identified, over the life of the refineries. Under
this approach, it is assumed that refining margins would revert to
historical averages over time. As from second quarter 2020, a
different price methodology has been applied, based on Shell
management's understanding and interpretation of demand and supply
fundamentals in the near term and taking into account various other
factors such as industry rationalisation and energy transition in
the long term. This resulted in a downward revision of average
long-term refining margins by around 30% from previous assumptions
applied. Approximately 50% of the combined “Property, Plant
and Equipment, Joint Ventures and Associates as well as Intangible
Assets” carrying amount was tested for impairment in the second
quarter 2020. The main sensitivity in the impairment test is the
long term Brent price assumption. For sensitivity purposes, a
decrease from 2024 of the long-term Brent price assumption to $55/b
(real term 2020), would ceteris paribus result in some additional
$6 - $7 billion pre-tax impairment at June 30,
2020. Page 18
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
ALTERNATIVE PERFORMANCE (NON-GAAP)
MEASURES
The “Adjusted Earnings” measure aims to facilitate a comparative
understanding of Shell’s financial performance from period to
period by removing the effects of oil price changes on inventory
carrying amounts and removing the effects of identified items.
These items are in some cases driven by external factors and may,
either individually or collectively, hinder the comparative
understanding of Shell’s financial results from period to period.
This measure excludes earnings attributable to non-controlling
interest. This measure was previously referred to as “CCS earnings
attributable to shareholders excluding identified items” and was
renamed for simplicity with effect from the second quarter
2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS |
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
(18,131 |
) |
(24 |
) |
2,998 |
|
Income/(loss) attributable to Royal Dutch Shell plc
shareholders |
(18,155 |
) |
8,999 |
|
(246 |
) |
2,780 |
|
27 |
|
Add: Current cost of supplies adjustment attributable to Royal
Dutch Shell plc shareholders (Note 2) |
2,535 |
|
(681 |
) |
(19,015 |
) |
(104 |
) |
(437 |
) |
Less: Identified items attributable to Royal Dutch Shell plc
shareholders |
(19,118 |
) |
(445 |
) |
638 |
|
2,860 |
|
3,462 |
|
Adjusted Earnings |
3,498 |
|
8,763 |
|
Identified itemsIdentified items
comprise: divestment gains and losses, impairments, fair value
accounting of commodity derivatives and certain gas contracts,
redundancy and restructuring, the impact of exchange rate movements
on certain deferred tax balances, and other items.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IDENTIFIED ITEMS |
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
|
|
|
Identified items before tax |
|
|
128 |
|
(76 |
) |
379 |
|
Divestment gains/(losses) |
51 |
|
444 |
|
(22,332 |
) |
(749 |
) |
(672 |
) |
Impairments |
(23,082 |
) |
(706 |
) |
(1,884 |
) |
968 |
|
12 |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(916 |
) |
(61 |
) |
(518 |
) |
(18 |
) |
(27 |
) |
Redundancy and restructuring |
(536 |
) |
(80 |
) |
(427 |
) |
— |
|
(437 |
) |
Other |
(427 |
) |
(437 |
) |
(25,033 |
) |
125 |
|
(746 |
) |
Total identified items before tax |
(24,908 |
) |
(839 |
) |
6,018 |
|
(228 |
) |
331 |
|
Total tax impact of identified items |
5,790 |
|
416 |
|
|
|
|
Identified items after tax |
|
|
10 |
|
(32 |
) |
256 |
|
Divestment gains/(losses) |
(22 |
) |
302 |
|
(16,842 |
) |
(536 |
) |
(446 |
) |
Impairments |
(17,378 |
) |
(491 |
) |
(1,540 |
) |
838 |
|
1 |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(702 |
) |
33 |
|
(375 |
) |
(7 |
) |
(13 |
) |
Redundancy and restructuring |
(382 |
) |
(46 |
) |
(44 |
) |
(366 |
) |
16 |
|
Impact of exchange rate movements on tax balances |
(410 |
) |
8 |
|
(224 |
) |
— |
|
(229 |
) |
Other |
(224 |
) |
(229 |
) |
(19,015 |
) |
(104 |
) |
(415 |
) |
Impact on CCS earnings |
(19,118 |
) |
(423 |
) |
|
|
|
Of which: |
|
|
(8,321 |
) |
(331 |
) |
(386 |
) |
Integrated Gas |
(8,652 |
) |
(160 |
) |
(5,209 |
) |
(1,154 |
) |
172 |
|
Upstream |
(6,364 |
) |
149 |
|
(5,433 |
) |
849 |
|
20 |
|
Oil Products |
(4,585 |
) |
(205 |
) |
(41 |
) |
(2 |
) |
(239 |
) |
Chemicals |
(43 |
) |
(237 |
) |
(9 |
) |
535 |
|
18 |
|
Corporate |
526 |
|
31 |
|
(19,015 |
) |
(104 |
) |
(437 |
) |
Impact on CCS earnings attributable to shareholders |
(19,118 |
) |
(445 |
) |
— |
|
— |
|
22 |
|
Impact on CCS earnings attributable to non-controlling
interest |
— |
|
22 |
|
Page 19
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
The identified items categories above may include
after-tax impacts of identified items of joint ventures and
associates which are fully reported within "Share of profit of
joint ventures and associates" in the Consolidated Statement of
Income, and fully reported as identified items before tax in the
table above. Identified items related to subsidiaries are
consolidated and reported across appropriate lines of the
Consolidated Statement of Income. Only pre-tax identified items
reported by subsidiaries are taken into account in the calculation
of underlying operating expenses (Reference F). Fair value
accounting of commodity derivatives and certain gas
contracts: In the ordinary course of business, Shell
enters into contracts to supply or purchase oil and gas products,
as well as power and environmental products. Shell also enters into
contracts for tolling, pipeline and storage capacity. Derivative
contracts are entered into for mitigation of resulting economic
exposures (generally price exposure) and these derivative contracts
are carried at period-end market price (fair value), with movements
in fair value recognised in income for the period. Supply and
purchase contracts entered into for operational purposes, as well
as contracts for tolling, pipeline and storage capacity, are, by
contrast, recognised when the transaction occurs; furthermore,
inventory is carried at historical cost or net realisable value,
whichever is lower. As a consequence, accounting mismatches occur
because: (a) the supply or purchase transaction is recognised in a
different period, or (b) the inventory is measured on a different
basis. In addition, certain contracts are, due to pricing or
delivery conditions, deemed to contain embedded derivatives or
written options and are also required to be carried at fair value
even though they are entered into for operational purposes. The
accounting impacts are reported as identified items.
Impacts of exchange rate movements on tax balances
represent the impact on tax balances of exchange rate movements
arising on (a) the conversion to dollars of the local currency tax
base of non-monetary assets and liabilities, as well as losses
(this primarily impacts the Upstream and Integrated Gas segments)
and (b) the conversion of dollar-denominated inter-segment loans to
local currency, leading to taxable exchange rate gains or losses
(this primarily impacts the Corporate segment). Other
identified items represent other credits or charges that
based on Shell management's assessment hinder the comparative
understanding of Shell's financial results from period to period,
such as the impact arising from changes in tax legislation and
certain provisions for onerous contracts or litigation. The second
quarter 2020 reflects the impact of a reduction in the discount
rate used for provisions.
B. Basic CCS
earnings per share Basic CCS earnings per share is
calculated as CCS earnings attributable to Royal Dutch Shell plc
shareholders (see Note 2), divided by the weighted average number
of shares used as the basis for basic earnings per share (see Note
3). C. Cash capital
expenditure Cash capital expenditure represents cash spent
on maintaining and developing assets as well as on investments in
the period. Management regularly monitors this measure as a key
lever to delivering sustainable cash flows. Cash capital
expenditure is the sum of the following lines from the Consolidated
Statement of Cash flows: Capital expenditure, Investments in joint
ventures and associates and Investments in equity securities.With
effect from the first quarter 2020, “Capital investment” is no
longer presented in this announcement since Cash capital
expenditure is considered to be more closely aligned with
management’s focus on free cash flow generation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
3,436 |
|
4,263 |
|
5,150 |
|
Capital expenditure |
7,699 |
|
10,272 |
|
161 |
|
559 |
|
160 |
|
Investments in joint ventures and associates |
720 |
|
601 |
|
20 |
|
147 |
|
26 |
|
Investments in equity securities |
167 |
|
65 |
|
3,617 |
|
4,970 |
|
5,337 |
|
Cash capital expenditure |
8,587 |
|
10,938 |
|
|
|
|
Of which: |
|
|
736 |
|
882 |
|
738 |
|
Integrated Gas |
1,618 |
|
2,081 |
|
1,876 |
|
2,521 |
|
2,321 |
|
Upstream |
4,397 |
|
4,812 |
|
606 |
|
580 |
|
1,118 |
|
Oil Products |
1,186 |
|
1,971 |
|
369 |
|
846 |
|
1,079 |
|
Chemicals |
1,215 |
|
1,907 |
|
30 |
|
141 |
|
81 |
|
Corporate |
171 |
|
166 |
|
D. Return on
average capital employed Return on average capital
employed (ROACE) measures the efficiency of Shell’s utilisation of
the capital that it employs. Shell uses two ROACE measures: ROACE
on a Net income basis and ROACE on a CCS basis excluding identified
items, Page 20
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
both adjusted for after-tax interest expense. With effect
from the second quarter 2020, the after-tax interest expense
adjustment is calculated using an applicable blended statutory tax
rate. This change is implemented to eliminate the distorting
volatility effects of the effective tax rate. There is no
significant impact on prior periods comparatives, which therefore
have not been revised.Both measures refer to Capital employed which
consists of total equity, current debt and non-current debt.
ROACE on a Net income basis In this calculation,
the sum of income for the current and previous three quarters,
adjusted for after-tax interest expense, is expressed as a
percentage of the average capital employed for the same period.
|
|
|
|
|
|
|
|
$ million |
Quarters |
|
Q2 2020 |
Q1 2020 |
|
Q2 2019 |
|
Income - current and previous three quarters |
(11,011) |
10,252 |
|
21,006 |
|
Interest expense after tax - current and previous three
quarters |
3,014 |
2,854 |
|
2,819 |
|
Income before interest expense - current and previous three
quarters |
(7,997) |
13,106 |
|
23,825 |
|
Capital employed – opening |
288,900 |
292,797 |
|
281,711 |
|
Capital employed – closing |
265,435 |
278,444 |
|
288,900 |
|
Capital employed – average |
277,168 |
285,620 |
|
285,306 |
|
ROACE on a Net income basis |
(2.9)% |
4.6 |
% |
8.4 |
% |
ROACE on a CCS basis excluding identified items
In this calculation, the sum of CCS earnings excluding identified
items for the current and previous three quarters, adjusted for
after-tax interest expense, is expressed as a percentage of the
average capital employed for the same period.
|
|
|
|
|
|
|
|
|
$ million |
Quarters |
|
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
CCS earnings - current and previous three quarters |
(8,264) |
|
13,256 |
|
21,794 |
|
Identified items - current and previous three quarters |
(19,865) |
|
(1,266 |
) |
1,169 |
|
Interest expense after tax – current and previous three
quarters |
3,014 |
|
2,854 |
|
2,819 |
|
CCS earnings excluding identified items before interest
expense - current and previous three quarters |
14,616 |
|
17,376 |
|
23,444 |
|
Capital employed – average |
277,168 |
|
285,620 |
|
285,306 |
|
ROACE on a CCS basis excluding identified
items |
5.3 |
% |
6.1 |
% |
8.2 |
% |
E. Gearing
Gearing is a key measure of Shell’s capital structure and is
defined as net debt as a percentage of total capital. Net debt is
defined as the sum of current and non-current debt, less cash and
cash equivalents, adjusted for the fair value of derivative
financial instruments used to hedge foreign exchange and interest
rate risks relating to debt, and associated collateral balances.
Management considers this adjustment useful because it reduces the
volatility of net debt caused by fluctuations in foreign exchange
and interest rates, and eliminates the potential impact of related
collateral payments or receipts. Debt-related derivative financial
instruments are a subset of the derivative financial instrument
assets and liabilities presented on the balance sheet. Collateral
balances are reported under “Trade and other receivables” or “Trade
and other payables” as appropriate. Page 21
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
$ million |
Quarters |
|
June 30, 2020 |
|
March 31, 2020 |
|
June 30, 2019 |
|
Current debt |
17,530 |
|
15,767 |
|
16,617 |
|
Non-current debt |
87,460 |
|
79,298 |
|
76,029 |
|
Total debt¹ |
104,990 |
|
95,065 |
|
92,646 |
|
Add: Debt-related derivative financial instruments: net
liability/(asset) |
525 |
|
1,218 |
|
634 |
|
Add: Collateral on debt-related derivatives: net
liability/(asset) |
266 |
|
(58) |
|
78 |
|
Less: Cash and cash equivalents |
(27,939) |
|
(21,811) |
|
(18,470) |
|
Net debt |
77,843 |
|
74,413 |
|
74,887 |
|
Add: Total equity |
160,445 |
|
183,379 |
|
196,254 |
|
Total capital |
238,288 |
|
257,792 |
|
271,142 |
|
Gearing |
32.7 |
% |
28.9 |
% |
27.6 |
% |
|
|
1. |
Includes lease liabilities of
$29,073 million at June 30, 2020 and $29,290 million at March
31, 2020, and $30,758 million at June 30, 2019. |
F. Operating
expenses Operating expenses is a measure of Shell’s cost
management performance, comprising the following items from the
Consolidated Statement of Income: production and manufacturing
expenses; selling, distribution and administrative expenses; and
research and development expenses. Underlying operating expenses is
a measure aimed at facilitating a comparative understanding of
performance from period to period by removing the effects of
identified items, which either individually or collectively, can
cause volatility, in some cases driven by external factors.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
5,822 |
|
5,982 |
|
6,835 |
|
Production and manufacturing expenses |
11,803 |
|
13,189 |
|
2,370 |
|
2,393 |
|
2,881 |
|
Selling, distribution and administrative expenses |
4,763 |
|
5,233 |
|
232 |
|
243 |
|
225 |
|
Research and development |
475 |
|
437 |
|
8,423 |
|
8,618 |
|
9,941 |
|
Operating expenses |
17,042 |
|
18,859 |
|
|
|
|
Of which identified items: |
|
|
(508 |
) |
(18 |
) |
(27 |
) |
Redundancy and restructuring (charges)/reversal |
(526 |
) |
(79 |
) |
(411 |
) |
— |
|
(306 |
) |
(Provisions)/reversal |
(411 |
) |
(306 |
) |
— |
|
— |
|
(131 |
) |
Other |
— |
|
(131 |
) |
(919 |
) |
(18 |
) |
(464 |
) |
|
(937 |
) |
(516 |
) |
7,504 |
|
8,600 |
|
9,477 |
|
Underlying operating expenses |
16,105 |
|
18,343 |
|
G. Free cash
flow Free cash flow is used to evaluate cash available for
financing activities, including dividend payments and debt
servicing, after investment in maintaining and growing the
business. It is defined as the sum of “Cash flow from operating
activities” and “Cash flow from investing activities”. Cash flows
from acquisition and divestment activities are removed from Free
cash flow to arrive at the Organic free cash flow, a measure used
by management to evaluate the generation of free cash flow without
these activities. Page 22
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
2,563 |
|
14,851 |
|
11,031 |
|
Cash flow from operating activities |
17,415 |
|
19,661 |
|
(2,320 |
) |
(2,718 |
) |
(4,166 |
) |
Cash flow from investing activities |
(5,039 |
) |
(8,788 |
) |
243 |
|
12,133 |
|
6,865 |
|
Free cash flow |
12,376 |
|
10,873 |
|
696 |
|
2,233 |
|
763 |
|
Less: Divestment proceeds (Reference I) |
2,929 |
|
1,756 |
|
— |
|
— |
|
77 |
|
Add: Tax paid on divestments (reported under "Other investing cash
outflows") |
— |
|
77 |
|
199 |
|
404 |
|
7 |
|
Add: Cash outflows related to inorganic capital expenditure1 |
602 |
|
365 |
|
(254 |
) |
10,304 |
|
6,186 |
|
Organic free cash
flow2 |
10,050 |
|
9,559 |
|
|
|
1. |
Cash outflows related to
inorganic capital expenditure includes portfolio actions which
expand Shell's activities through acquisitions and restructuring
activities as reported in capital expenditure lines in the
Consolidated Statement of Cash Flows. |
|
|
2. |
Free cash flow less divestment
proceeds, adding back outflows related to inorganic
expenditure. |
H. Cash flow
from operating activities excluding working capital
movements Working capital movements are defined as the sum
of the following items in the Consolidated Statement of Cash Flows:
(i) (increase)/decrease in inventories, (ii) (increase)/decrease in
current receivables, and (iii) increase/(decrease) in current
payables. Cash flow from operating activities excluding working
capital movements is a measure used by Shell to analyse its
operating cash generation over time excluding the timing effects of
changes in inventories and operating receivables and payables from
period to period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
|
Q2 2019 |
|
|
2020 |
|
2019 |
|
2,563 |
|
14,851 |
|
11,031 |
|
Cash flow from operating activities |
17,415 |
|
19,661 |
|
(3,713 |
) |
9,594 |
|
(61 |
) |
(Increase)/decrease in inventories |
5,881 |
|
(2,902 |
) |
3,959 |
|
6,314 |
|
308 |
|
(Increase)/decrease in current receivables |
10,273 |
|
(1,117 |
) |
(4,226 |
) |
(8,430 |
) |
321 |
|
Increase/(decrease) in current payables |
(12,655 |
) |
1,104 |
|
(3,980 |
) |
7,478 |
|
569 |
|
(Increase)/decrease in working capital |
3,499 |
|
(2,914 |
) |
6,543 |
|
7,373 |
|
10,462 |
|
Cash flow from operating activities excluding
working capital movements |
13,916 |
|
22,575 |
|
|
|
|
Of which: |
|
|
2,871 |
|
3,352 |
|
2,824 |
|
Integrated Gas |
6,224 |
|
6,540 |
|
548 |
|
3,718 |
|
5,251 |
|
Upstream |
4,265 |
|
10,515 |
|
2,430 |
|
353 |
|
2,081 |
|
Oil Products |
2,783 |
|
4,670 |
|
304 |
|
189 |
|
508 |
|
Chemicals |
492 |
|
1,037 |
|
390 |
|
(239 |
) |
(202 |
) |
Corporate |
151 |
|
(185 |
) |
I. Divestment
proceedsDivestment proceeds represent cash received from
divestment activities in the period. Management regularly monitors
this measure as a key lever to deliver sustainable cash flow.
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
Half year |
Q2 2020 |
|
Q1 2020 |
Q2 2019 |
|
2020 |
2019 |
211 |
|
1,613 |
644 |
Proceeds from sale of property, plant and equipment and
businesses |
1,824 |
822 |
423 |
|
547 |
102 |
Proceeds from sale of joint ventures and associates |
970 |
646 |
62 |
|
73 |
17 |
Proceeds from sale of equity securities |
135 |
288 |
696 |
|
2,233 |
763 |
Divestment proceeds |
2,929 |
1,756 |
Page 23
|
|
|
ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
PRINCIPAL RISKS AND UNCERTAINTIES The
principal risks and uncertainties affecting Shell are described in
the Risk Factors section of the Annual Report and Accounts (pages
27 to 36) and Form 20-F (pages 11 to 15) for the year ended
December 31, 2019 and are summarised below. There are no
material changes in those Risk Factors for the remaining 6 months
of the financial year.
|
|
▪ |
We are exposed to macroeconomic risks including fluctuating prices
of crude oil, natural gas, oil products and chemicals. |
|
|
▪ |
Our ability to deliver competitive returns and pursue commercial
opportunities depends in part on the accuracy of our price
assumptions. |
|
|
▪ |
Our ability to achieve strategic objectives depends on how we react
to competitive forces. |
|
|
▪ |
We seek to execute divestments in the pursuit of our strategy. We
may not be able to successfully divest these assets in line with
our strategy. |
|
|
▪ |
Our future hydrocarbon production depends on the delivery of large
and integrated projects, as well as on our ability to replace
proved oil and gas reserves. |
|
|
▪ |
The estimation of proved oil and gas reserves involves subjective
judgements based on available information and the application of
complex rules; therefore, subsequent downward adjustments are
possible. |
|
|
▪ |
Rising climate change concerns have led and could lead to
additional legal and/or regulatory measures which could result in
project delays or cancellations, a decrease in demand for fossil
fuels, potential litigation and additional compliance
obligations. |
|
|
▪ |
Our business exposes us to risks of social instability,
criminality, civil unrest, terrorism, piracy, cyber-disruption,
acts of war and pandemic diseases, such as the COVID-19
(coronavirus) outbreak, that could have a material adverse effect
on our operations. |
|
|
▪ |
We operate in more than 70 countries that have differing degrees of
political, legal and fiscal stability. This exposes us to a wide
range of political developments that could result in changes to
contractual terms, laws and regulations. In addition, we and our
joint arrangements and associates face the risk of litigation and
disputes worldwide. |
|
|
▪ |
The nature of our operations exposes us, and the communities in
which we work, to a wide range of health, safety, security and
environment risks. |
|
|
▪ |
A further erosion of the business and operating environment in
Nigeria could have a material adverse effect on us. |
|
|
▪ |
Production from the Groningen field in the Netherlands causes
earthquakes that affect local communities. |
|
|
▪ |
Our future performance depends on the successful development and
deployment of new technologies and new products. |
|
|
▪ |
We are exposed to treasury and trading risks, including liquidity
risk, interest rate risk, foreign exchange risk and credit risk. We
are affected by the global macroeconomic environment as well as
financial and commodity market conditions. |
|
|
▪ |
We are exposed to commodity trading risks, including market and
operational risks. |
|
|
▪ |
We have substantial pension commitments, funding of which is
subject to capital market risks and other factors. |
|
|
▪ |
We mainly self-insure our risk exposure. We could incur significant
losses from different types of risks that are not covered by
insurance from third-party insurers. |
|
|
▪ |
An erosion of our business reputation could have a material adverse
effect on our brand, our ability to secure new resources or access
capital markets, and on our licence to operate. |
|
|
▪ |
Many of our major projects and operations are conducted in joint
arrangements or associates. This could reduce our degree of
control, as well as our ability to identify and manage risks. |
|
|
▪ |
We rely heavily on information technology systems for our
operations. |
|
|
▪ |
Violations of antitrust and competition laws carry fines and expose
us and/or our employees to criminal sanctions and civil suits. |
|
|
▪ |
Violations of anti-bribery, tax evasion and anti-money laundering
laws carry fines and expose us and/or our employees to criminal
sanctions, civil suits and ancillary consequences (such as
debarment and the revocation of licences). |
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Violations of data protection laws carry fines and expose us and/or
our employees to criminal sanctions and civil suits. |
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Violations of trade compliance laws and regulations, including
sanctions, carry fines and expose us and our employees to criminal
sanctions and civil suits. |
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The Company’s Articles of Association determine the jurisdiction
for shareholder disputes. This could limit shareholder
remedies. |
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
FIRST QUARTER 2020 PORTFOLIO
DEVELOPMENTS Integrated Gas During the quarter, Shell
announced that it will not proceed with the proposed Lake Charles
LNG project due to the current market conditions. Accordingly,
Energy Transfer will take over as the project developer. In April,
Shell took the Final Investment Decision to develop the first phase
of Arrow Energy's (Shell interest 50%) Surat Gas Project in
Queensland, Australia, which will bring up to 90 billion cubic feet
per year of new gas to market at peak production. Oil
Products During the quarter, Shell completed the sale of the
Martinez refinery in the USA to PBF Energy for $1.2 billion, which
includes the refinery and inventory. RESPONSIBILITY
STATEMENTIt is confirmed that to the best of our knowledge: (a) the
Condensed Consolidated Interim Financial Statements have been
prepared in accordance with IAS 34 Interim Financial Reporting as
adopted by the European Union; (b) the interim management report
includes a fair review of the information required by Disclosure
Guidance and Transparency Rule (DTR) 4.2.7R (indication of
important events during the first six months of the financial year,
and their impact on the Condensed Consolidated Interim Financial
Statements, and description of principal risks and uncertainties
for the remaining six months of the financial year); and (c) the
interim management report includes a fair review of the information
required by DTR 4.2.8R (disclosure of related parties transactions
and changes thereto).The Directors of Royal Dutch Shell plc are
shown on pages 104-110 in the Annual Report and Accounts and on
pages 68 to 73 in the Form 20-F for the year ended
December 31, 2019 save for the following changes: Dick Boer:
appointed Non-executive Director with effect from May 20,
2020.Martina Hund-Mejean: appointed Non-executive Director with
effect from May 20, 2020.Gerard Kleisterlee: stepped down with
effect from May 19, 2020.Roberto Setubal: stepped down with effect
from May 19, 2020.Linda G. Stuntz: stepped down with effect from
May 19, 2020. On behalf of the
Board
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Ben van Beurden |
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Jessica Uhl |
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Chief Executive Officer |
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Chief Financial Officer |
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July 30, 2020 |
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July 30, 2020 |
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
INDEPENDENT REVIEW REPORT TO ROYAL DUTCH SHELL
PLCIntroductionWe have been engaged by Royal Dutch Shell plc to
review the Condensed Consolidated Interim Financial Statements in
the half-yearly financial report for the six months ended
June 30, 2020, which comprise the Consolidated Statement of
Income, the Consolidated Statement of Comprehensive Income, the
Condensed Consolidated Balance Sheet, the Consolidated Statement of
Changes in Equity, the Condensed Consolidated Statement of Cash
Flows and Notes 1 to 7. We have read the other information
contained in the half-yearly financial report and considered
whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of
financial statements.This report is made solely to Royal Dutch
Shell plc in accordance with guidance contained in the
International Standard on Review Engagements 2410 (UK and Ireland)
“Review of Interim Financial Information Performed by the
Independent Auditor of the Entity” issued by the Auditing Practices
Board. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than Royal Dutch Shell plc,
for our work, for this report, or for the conclusions we have
formed.Directors’ responsibilitiesThe half-yearly financial report
is the responsibility of, and has been approved by, the Directors.
The Directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom’s Financial Conduct
Authority.The annual Consolidated Financial Statements of Royal
Dutch Shell plc and its subsidiaries are prepared in accordance
with International Financial Reporting Standards as issued by the
International Accounting Standards Board (IASB) and as adopted by
the European Union (EU). The condensed set of financial statements
included in the half-yearly financial report has been prepared in
accordance with International Accounting Standard 34 Interim
Financial Reporting, as issued by the IASB and as adopted by the
EU.Our responsibilityOur responsibility is to express to Royal
Dutch Shell plc a conclusion on the Condensed Consolidated Interim
Financial Statements in the half-yearly financial report based on
our review. Scope of reviewWe conducted our review in accordance
with International Standard on Review Engagements 2410 (UK and
Ireland), “Review of Interim Financial Information Performed by the
Independent Auditor of the Entity” issued by the Auditing Practices
Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying
analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with
International Standards on Auditing (UK) and consequently does not
enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.ConclusionBased on
our review, nothing has come to our attention that causes us to
believe that the Condensed Consolidated Interim Financial
Statements in the half-yearly financial report for the six months
ended June 30, 2020 are not prepared, in all material
respects, in accordance with International Accounting Standard 34
as issued by the IASB and as adopted by the EU and the Disclosure
Guidance and Transparency Rules of the United Kingdom’s Financial
Conduct Authority. Ernst & Young LLPLondonJuly 30,
2020 Page 26
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
The maintenance and integrity of the Royal Dutch Shell plc
website (www.shell.com) are the responsibility of the Directors;
the work carried out by the auditors does not involve consideration
of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the
Condensed Consolidated Interim Financial Statements since they were
initially presented on the website.Legislation in the United
Kingdom governing the preparation and dissemination of financial
statements may differ from legislation in other
jurisdictions. Page 27
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ROYAL DUTCH SHELL PLC2ND QUARTER 2020 AND
HALF YEAR UNAUDITED RESULTS |
CAUTIONARY STATEMENT All amounts shown
throughout this announcement are unaudited. All peak production
figures in Portfolio Developments are quoted at 100% expected
production. The numbers presented throughout this announcement may
not sum precisely to the totals provided and percentages may not
precisely reflect the absolute figures, due to rounding.The
companies in which Royal Dutch Shell plc directly and indirectly
owns investments are separate legal entities. In this announcement
“Shell”, “Shell Group” and “Royal Dutch Shell” are sometimes used
for convenience where references are made to Royal Dutch Shell plc
and its subsidiaries in general. Likewise, the words “we”, “us” and
“our” are also used to refer to Royal Dutch Shell plc and its
subsidiaries in general or to those who work for them. These terms
are also used where no useful purpose is served by identifying the
particular entity or entities. “Subsidiaries”, “Shell subsidiaries”
and “Shell companies” as used in this announcement refer to
entities over which Royal Dutch Shell plc either directly or
indirectly has control. Entities and unincorporated arrangements
over which Shell has joint control are generally referred to as
“joint ventures” and “joint operations”, respectively. Entities
over which Shell has significant influence but neither control nor
joint control are referred to as “associates”. The term “Shell
interest” is used for convenience to indicate the direct and/or
indirect ownership interest held by Shell in an entity or
unincorporated joint arrangement, after exclusion of all
third-party interest. This announcement contains forward-looking
statements (within the meaning of the US Private Securities
Litigation Reform Act of 1995) concerning the financial condition,
results of operations and businesses of Royal Dutch Shell. All
statements other than statements of historical fact are, or may be
deemed to be, forward-looking statements. Forward-looking
statements are statements of future expectations that are based on
management’s current expectations and assumptions and involve known
and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those
expressed or implied in these statements. Forward-looking
statements include, among other things, statements concerning the
potential exposure of Royal Dutch Shell to market risks and
statements expressing management’s expectations, beliefs,
estimates, forecasts, projections and assumptions. These
forward-looking statements are identified by their use of terms and
phrases such as “aim”, “ambition”, “anticipate”, “believe”,
“could”, “estimate”, “expect”, “goals”, “intend”, “may”,
“objectives”, “outlook”, “plan”, “probably”, “project”, “risks”,
“schedule”, “seek”, “should”, “target”, “will” and similar terms
and phrases. There are a number of factors that could affect the
future operations of Royal Dutch Shell and could cause those
results to differ materially from those expressed in the
forward-looking statements included in this announcement, including
(without limitation): (a) price fluctuations in crude oil and
natural gas; (b) changes in demand for Shell’s products; (c)
currency fluctuations; (d) drilling and production results; (e)
reserves estimates; (f) loss of market share and industry
competition; (g) environmental and physical risks; (h) risks
associated with the identification of suitable potential
acquisition properties and targets, and successful negotiation and
completion of such transactions; (i) the risk of doing business in
developing countries and countries subject to international
sanctions; (j) legislative, fiscal and regulatory developments
including regulatory measures addressing climate change; (k)
economic and financial market conditions in various countries and
regions; (l) political risks, including the risks of expropriation
and renegotiation of the terms of contracts with governmental
entities, delays or advancements in the approval of projects and
delays in the reimbursement for shared costs; (m) risks associated
with the impact of pandemics, such as the COVID-19 (coronavirus)
outbreak; and (n) changes in trading conditions. No assurance is
provided that future dividend payments will match or exceed
previous dividend payments. All forward-looking statements
contained in this announcement are expressly qualified in their
entirety by the cautionary statements contained or referred to in
this section. Readers should not place undue reliance on
forward-looking statements. Additional risk factors that may affect
future results are contained in Royal Dutch Shell’s Annual Report
and Accounts and Form 20-F for the year ended December 31,
2019 (available at www.shell.com/investor and www.sec.gov). These
risk factors also expressly qualify all forward-looking statements
contained in this announcement and should be considered by the
reader. Each forward-looking statement speaks only as of the date
of this announcement, July 30, 2020. Neither Royal Dutch Shell plc
nor any of its subsidiaries undertake any obligation to publicly
update or revise any forward-looking statement as a result of new
information, future events or other information. In light of these
risks, results could differ materially from those stated, implied
or inferred from the forward-looking statements contained in this
announcement. This announcement contains references to Shell’s
website. These references are for the readers’ convenience only.
Shell is not incorporating by reference any information posted on
www.shell.com. We may have used certain terms, such as resources,
in this announcement that the United States Securities and Exchange
Commission (SEC) strictly prohibits us from including in our
filings with the SEC. Investors are urged to consider closely the
disclosure in our Form 20-F, File No 1-32575, available on the SEC
website www.sec.gov. This announcement contains inside information.
July 30, 2020
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The information in this announcement reflects the unaudited
consolidated financial position and results of Royal Dutch Shell
plc. Company No. 4366849, Registered Office: Shell Centre, London,
SE1 7NA, England, UK. |
Contacts: - Linda M. Coulter, Company Secretary -
Media: International +44 (0) 207 934 5550; USA +1 832 337 4355
LEI number of Royal Dutch Shell plc: 21380068P1DRHMJ8KU70
Classification: Inside Information Page
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