Shell enhances quarterly
disclosures
The Hague, September 30, 2019 - Royal Dutch Shell plc (Shell) today introduces
the publication of a quarterly update, starting with the third
quarter 2019. We will additionally publish the quarterly consensus
collected for cash flow from operations (CFFO). Jessica Uhl, CFO of Royal Dutch Shell said: “In response to feedback
from our investor community we are introducing this new quarterly
process. This is a further step in Shell’s ongoing journey to
enhance disclosures and increase transparency”.
Third quarter 2019 update
This is an update to the third quarter 2019 outlook provided in
the second quarter results announcement on August 1, 2019. The impacts presented here may
vary from the actual results and are subject to finalisation of the
third quarter 2019 results which are scheduled to be released on
31 October 2019.
Presented earnings impacts relate to earnings on a current cost
of supplies basis, attributable to shareholders excluding
identified items unless stated otherwise.
Integrated Gas
- Production is expected to be between 930 and 960 thousand
barrels of oil equivalent per day
- LNG liquefaction volumes are expected to be between 9.00 and
9.30 million tonnes
- For the third quarter, we expect to deliver strong trading and
optimisation performance
- Note that more than 80% of our term contracts for LNG sales in
2018 were oil price linked with a price-lag of typically 3-6
months, as per previous disclosures
- Note that, as in previous quarters, CFFO in Integrated Gas can
be impacted by margining resulting from movements in the forward
commodity curves
Upstream
- Production is expected to be between 2,600 and 2,650 thousand
barrels of oil equivalent per day
- During the third quarter there have been additional well
write-offs in the range of $250-$350 million
compared to Q3 2018, for which no cash impact is expected
- Natural Gas Liquids and gas prices continue to be disconnected
from Brent compared to Q3 2018
- In July, we completed the divestment of the Caesar-Tonga asset and our Upstream interests in
Denmark
Downstream
- Refinery availability is expected to be between 90% and
92%
- Oil Products sales volumes are expected to be between 6,700 and
7,350 thousand barrels per day
- Chemicals manufacturing plant availability is expected to be
between 90% and 92%
- Chemicals sales volumes are expected to be between 3,900 and
4,000 thousand tonnes
- We expect chemicals cracker and intermediate margins to be
materially unchanged from Q2 2019
- In September, we completed the divestment of our interest in
the SASREF refining joint venture
Corporate
- Corporate earnings excluding identified items are expected to
be a net charge between $700 – 850
million, this excludes the impact of currency exchange rate
effects
- Currency exchange rate movements, including a weakening of the
Brazilian Real, is expected to have a negative earnings impact on
top of the provided range
Other
- As per previous disclosures, price sensitivity at Shell group
level is $6 billion per annum per
$10 per barrel Brent price movement
- Note that this price sensitivity is appropriate for smaller
price changes, and is best used for full-year numbers
Consensus
The consensus collection for quarterly earnings and CFFO,
managed by VARA research, is scheduled to be opened for submission
on 10 October 2019, close on
23 October 2019, and made public on
24 October 2019.
Royal Dutch
Shell plc
Enquiries:
Investor Relations:
Europe + 31 (0) 70 377 4540
North America +1 832 337 2034
Media:
International +44 (0) 207 934 5550
Americas +1 832 337 4355
Cautionary Note
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 U.S. 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; and (m) 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 Form 20-F for the year ended December 31, 2018 (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, September 30, 2019. 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 may contain 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. U.S. 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.
LEI number of Royal Dutch Shell
plc: 21380068P1DRHMJ8KU70