{"id":18736,"date":"2021-07-29T11:34:35","date_gmt":"2021-07-29T06:34:35","guid":{"rendered":"https:\/\/pr.asianetpakistan.com\/?p=76966"},"modified":"2021-07-29T11:34:35","modified_gmt":"2021-07-29T06:34:35","slug":"royal-dutch-shell-plc-publishes-second-quarter-2021-press-release","status":"publish","type":"post","link":"https:\/\/myanmarnewsgazette.com\/royal-dutch-shell-plc-publishes-second-quarter-2021-press-release\/","title":{"rendered":"ROYAL DUTCH SHELL PLC PUBLISHES SECOND QUARTER 2021 PRESS RELEASE"},"content":{"rendered":"
\n
The Hague, July 29, 2021 <\/strong><\/p>\n
“We are stepping up our shareholder distributions today, increasing dividends and starting share buybacks, while we continue to invest for the future of energy. The quality of Shell\u2019s operational and financial delivery and strengthened balance sheet have given the Board confidence to rebase the dividend per share from Q2 2021 onwards to 24 US cents. We are also launching $2 billion of share buybacks, which is targeted to be completed by the end of this year.<\/p>\n
Total shareholder distributions for 2021 are expected to be around the middle of the 20-30% range of CFFO from the previous four quarters. Our progressive dividend policy to grow dividends per share by 4% annually, subject to Board approval, remains unchanged.”<\/p>\n
Royal Dutch Shell Chief Executive Officer, Ben van Beurden<\/strong><\/p>\n
STEPPING UP DISTRIBUTIONS TO OUR SHAREHOLDERS<\/strong><\/p>\n
\n
Another quarter of strong operational and financial delivery, with $14.2 billion CFFO excl. WC and $5.5 billion Adj. Earnings.<\/li>\n
Shell moves to the next phase of the capital allocation framework, consistent with our Powering Progress strategy:\n
\n
Dividend rebased to 24 US cents per share, an increase of over 38% from Q1 2021; maintaining ~4% annual growth<\/li>\n
Share buybacks targeted at $2 billion in the second half of 2021<\/li>\n
Targeting AA credit metrics through the cycle; $65 billion net debt milestone retired<\/li>\n<\/ul>\n<\/li>\n
Disciplined cash capex: remains below $22 billion in 2021.<\/li>\n<\/ul>\n
\n\n
\n
$ million<\/strong><\/td>\n
Adj. Earnings1<\/sup><\/strong><\/td>\n
Adj. EBITDA (CCS)<\/strong><\/td>\n
CFFO ex. WC<\/strong><\/td>\n
CFFO<\/strong><\/td>\n
Cash capex<\/strong><\/td>\n<\/tr>\n
\n
Integrated Gas<\/td>\n
1,609<\/td>\n
3,364<\/td>\n
4,350<\/td>\n
3,761<\/td>\n
880<\/td>\n<\/tr>\n
\n
Upstream<\/td>\n
2,469<\/td>\n
6,714<\/td>\n
5,444<\/td>\n
5,056<\/td>\n
1,696<\/td>\n<\/tr>\n
\n
Oil Products<\/td>\n
1,299<\/td>\n
2,608<\/td>\n
3,365<\/td>\n
2,213<\/td>\n
882<\/td>\n<\/tr>\n
\n
Refining & Trading<\/i><\/em><\/td>\n
112<\/i><\/td>\n
676<\/i><\/td>\n
<\/td>\n
<\/td>\n
<\/td>\n<\/tr>\n
\n
Marketing<\/i><\/em><\/td>\n
1,187<\/i><\/td>\n
1,932<\/i><\/td>\n
<\/td>\n
<\/td>\n
<\/td>\n<\/tr>\n
\n
Chemicals<\/td>\n
670<\/td>\n
1,036<\/td>\n
1,225<\/td>\n
1,133<\/td>\n
895<\/td>\n<\/tr>\n
\n
Corporate<\/td>\n
(399)<\/td>\n
(101)<\/td>\n
(208)<\/td>\n
454<\/td>\n
30<\/td>\n<\/tr>\n
\n
Less: Non-controlling interest<\/td>\n
115<\/td>\n
115<\/td>\n
<\/td>\n
<\/td>\n
<\/td>\n<\/tr>\n
\n
RDS<\/td>\n
Q2 2021<\/strong><\/td>\n
5,534<\/td>\n
13,507<\/td>\n
14,176<\/td>\n
12,617<\/td>\n
4,383<\/td>\n<\/tr>\n
\n
Q1 2021<\/strong><\/td>\n
3,234<\/td>\n
11,490<\/td>\n
12,683<\/td>\n
8,294<\/td>\n
3,974<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
1 <\/sup><\/em>Income\/(loss) attributable to shareholders for Q2 2021 is $3.4 billion. Reconciliation of non-GAAP measures can be found in the unaudited results, available on www.shell.com\/investors<\/a>.<\/em><\/p>\n
INTEGRATED GAS, RENEWABLES AND ENERGY SOLUTIONS<\/strong><\/p>\n
\n\n
\n
Key data<\/strong><\/td>\n
Q1 2021<\/strong><\/td>\n
Q2 2021<\/strong><\/td>\n
Q3 2021 outlook<\/strong><\/td>\n<\/tr>\n
\n
Realised liquids price ($\/bbl)<\/td>\n
55.74<\/td>\n
58.97<\/td>\n
\u2014<\/td>\n<\/tr>\n
\n
Realised gas price ($\/mscf)<\/td>\n
5.41<\/td>\n
6.32<\/td>\n
\u2014<\/td>\n<\/tr>\n
\n
Production (kboe\/d)<\/td>\n
967<\/td>\n
938<\/td>\n
870 – 920<\/td>\n<\/tr>\n
\n
LNG liquefaction volumes (MT)<\/td>\n
8.16<\/td>\n
7.49<\/td>\n
7.4 – 8.0<\/td>\n<\/tr>\n
\n
LNG sales volumes (MT)<\/td>\n
16.38<\/td>\n
15.92<\/td>\n
\u2014<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n
Adjusted Earnings and CFFO benefited from higher realised prices, partly offset by lower trading and optimisation margins.<\/li>\n
Trading and optimisation contributions to earnings were significantly below average, mainly due to supply disruptions.<\/li>\n
Strong cash conversion, with CFFO excluding working capital of $4.3 billion, benefiting from variation margin inflows in gas and power trading.<\/li>\n
Q3 2021 production and LNG liquefaction volumes outlook is impacted by maintenance activities.<\/li>\n<\/ul>\n
Higher Adjusted Earnings than in Q1 2021, driven by higher prices and a one-off release of a non-cash tax provision of approximately $600 million.<\/li>\n
Continued strong cash conversion, with CFFO excluding working capital of $5.4 billion.<\/li>\n
Production 8% below Q1 2021, driven by gas demand seasonality and increased maintenance.<\/li>\n
Q3 2021 total production is expected to be impacted by lower seasonal gas demand.<\/li>\n<\/ul>\n
Global indicative refining margin ($\/bbl)<\/td>\n
2.69<\/td>\n
4.17<\/td>\n
\u2014<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n
Strong Marketing earnings driven by improved retail unit margins and volumes.<\/li>\n
Improved refining margins as well as higher intake and utilisation than in Q1 2021.<\/li>\n
Trading and optimisation contributions to earnings were average.<\/li>\n
Marginally higher operating expenses than in Q1 2021, driven by recovery in volumes.<\/li>\n
Strong cash conversion with CFFO excluding working capital of $3.4 billion.<\/li>\n<\/ul>\n
CHEMICALS<\/strong><\/p>\n
\n\n
\n
Key data<\/strong><\/td>\n
Q1 2021<\/strong><\/td>\n
Q2 2021<\/strong><\/td>\n
Q3 2021 outlook<\/strong><\/td>\n<\/tr>\n
\n
Sales volumes (kT)<\/td>\n
3,583<\/td>\n
3,609<\/td>\n
3,600 – 3,900<\/td>\n<\/tr>\n
\n
Manufacturing plant utilisation (%)<\/td>\n
79<\/td>\n
82<\/td>\n
77 – 85<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n
Higher base chemicals margins due to higher utilisation, partly offset by lower intermediate margins resulting from lower spreads in key value chains.<\/li>\n
Marginally higher operating expenses than in Q1 2021, driven by maintenance catch-up.<\/li>\n
Strong cash conversion including timing impact of dividends from joint ventures and associates.<\/li>\n<\/ul>\n
Corporate segment Adjusted Earnings were a net expense of around $400 million, impacted by favourable movements in deferred tax positions.<\/li>\n
The latest full year estimate for Corporate Adjusted Earnings is lowered to a net expense of $2,300 – 2,600 million. This excludes the impact of currency exchange rate effects.<\/li>\n
Net debt decreased by $5.5 billion to $65.7 billion in Q2 2021 driven by higher cash flow from operations partly offset by a working capital outflow.<\/li>\n<\/ul>\n
UPCOMING INVESTOR EVENTS <\/strong><\/p>\n
\n\n
\n
28 October 2021<\/strong><\/td>\n
Third quarter 2021 results and dividends<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n