Shell Swings to Loss, Raises Dividend -- Commodity Comment
04 Febrero 2021 - 5:23AM
Noticias Dow Jones
By David Hodari
Royal Dutch Shell PLC, one of the world's largest oil-and-gas
companies, released its fourth quarter 2020 results Thursday, which
revealed an 87% drop in earnings. The company blamed the economic
impact of the coronavirus pandemic, which hammered oil demand and
with it oil prices and refining margins.
While the company raised its dividend, its shares were last down
1.4% at GBP13.18. Here are some more remarks from Shell's
report:
On Gas:
"Compared with the fourth quarter 2019, Integrated Gas Adjusted
Earnings of $1,109 million primarily reflected lower realised
prices for LNG, oil and gas and lower contributions from trading
and optimisation, partly offset by lower operating expenses...
Compared with the full year 2019, total oil and gas production
decreased by 1% mainly due to more maintenance activities and lower
wells performance"
On Upstream:
"Compared with the fourth quarter 2019, Upstream Adjusted
Earnings were a loss of $748 million, reflecting lower oil and gas
prices, lower production volumes mainly driven by hurricanes
affecting US Gulf of Mexico production and OPEC+ restrictions, and
unfavourable deferred tax movements... total production decreased
by 10%, mainly due to the impact of divestments, lower production
in the NAM joint venture, OPEC+ restrictions and higher
maintenance. New fields and ramp-ups, mainly in Brazil, offset the
impact of field declines."
On Refined Products:
"Compared with the full year 2019, Oil Products Adjusted
Earnings of $5,995 million reflected lower realised refining
margins and lower marketing sales volumes due to the weak
macroeconomic environment and the COVID-19 pandemic. These were
partly offset by lower operating expenses, contributions from crude
and oil products trading and optimisation, and favourable deferred
tax movements."
On 1Q 2021:
"As a result of the COVID-19 pandemic, there continues to be
significant uncertainty in the macroeconomic conditions with an
expected negative impact on demand for oil, gas and related
products... 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."
On Debt:
"Net debt was $75.4 billion at the end of the fourth quarter
2020, compared with $73.5 billion at the end of the third quarter
2020, mainly driven by lower free cash flow generation and by lease
additions, partly offset by favourable foreign currency exchange
translation differences."
Shell CEO Ben van Beurden on 2020:
"2020 was an extraordinary year. We have taken tough but
decisive actions and demonstrated highly resilient operational
delivery... We are coming out of 2020 with a stronger balance
sheet, ready to accelerate our strategy and make the future of
energy. We are committed to our progressive dividend policy and
expect to grow our US dollar dividend per share by around 4% as of
the first quarter 2021."
Write to David Hodari at david.hodari@wsj.com.
(END) Dow Jones Newswires
February 04, 2021 06:08 ET (11:08 GMT)
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