Post Earnings Coverage as Royal Dutch Shell Q3 Bottomline Outperformed Expectations
Upcoming AWS Coverage on Chevron Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 9, 2016 / Active Wall St. announces its post-earnings coverage on Royal Dutch Shell PLC (NYSE: RDS-A) (NYSE: RDS-B). The company posted its financial results for the third quarter fiscal 2016 (Q3 FY16) on November 01, 2016. The Hague, Netherlands-based company's current cost of supplies (CCS) earnings attributable to shareholders excluding identified items grew 18% y-o-y. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Royal Dutch Shell's competitors within the Major Integrated Oil & Gas space, Chevron Corp. (NYSE: CVX), reported third quarter financial results on October 28th, 2016. AWS will be initiating a research report on Chevron in the coming days.
Today, AWS is promoting its earnings coverage on RDS-A and RDS-B; touching on stock like CVX. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=RDS-A
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Earnings Reviewed
During Q3 FY16, Royal Dutch Shell revenues came in at $61.86 billion, 6% lower than $68.71 billion recorded at the end of Q3 FY15. Furthermore, revenues for the reported quarter fell short of market expectations of $68.00 billion.
The oil company reported income attributable to Royal Dutch Shell's shareholders of $1.38 billion, or $0.17 per diluted share, compared to loss attributable to Royal Dutch Shell's shareholders $7.42 billion, or $1.16 loss per diluted share, in Q3 FY15. Royal Dutch Shell's Q3 FY16 CCS earnings attributable to shareholders were $1.45 billion compared to a loss of $6.12 billion in the year ago period.
The CCS earnings attributable to shareholders, excluding identified items, for Q3 FY16 came in at $2.79 billion, compared to $2.38 billion, in Q3 FY15. Furthermore, basic CCS earnings, excluding identified items, stood at $0.70 per ADS (American Depositary Share) compared to $0.76 per ADS in Q3 F15 2015. Market analysts had forecasted basic CCS earnings, excluding identified items, of $0.54 per ADS for Q3 FY16.
Segment Performance
During Q3 FY16, the company's Integrated Gas segment's revenues came in at $7.20 billion, up from $5.78 billion reported in Q3 FY15. The segment's earnings, excluding identified items, were $931 million in Q3 FY16 compared to $918 million in the prior year's quarter. The segment's Q3 FY16 results were boosted by improved LNG and liquids output, better operational performance, cost saving initiatives, and lower well write-offs; nonetheless was partially offset by lower LNG prices and higher BG-related expenses.
Royal Dutch Shell's Upstream segment reported revenues of $1.36 billion in Q3 FY16 compared to $1.931 billion in Q3 FY15. The segment's earnings, excluding identified items, came in at $4 million in Q3 FY16 compared to loss of $582 million in Q3 FY15.The improved earnings was primarily due to a rise in production with contribution from the BG assets along with reduced costs and lower taxation; yet partially offset by lower oil and gas prices and depreciation charges associated with the BG takeover.
In Q3 FY16, Royal Dutch Shell's Downstream segment contributed $53.28 billion to the company's total revenues compared to $60.98 billion in the year ago quarter. The segment reported Q3 FY16 earnings, excluding identified items, of $2.08 billion, 21% less than the $2.62 billion earned in the last year's comparable quarter. The fall in earnings was due to weaker results from refining operations, partially offset by lower costs.
Cash Matters and Balance Sheet
For the quarter ended on September 30, 2016, Royal Dutch Shell generated $9.45 billion in cash from operations compared to $12.47 billion in the prior year's quarter. The company's cash and cash equivalents balance stood at $19.98 billion, as on September 30, 2016, compared to $31.75 billion, at the close of books on December 31, 2015.
The Anglo-Dutch oil major's gearing at the end of Q3 FY16 stood at 29.2% versus 12.7% at close of Q3 FY15; reflecting the impact of the acquisition of BG. Furthermore, return on average capital employed stood at 2.8% as on September 30, 2016, compared to 6.1% as on September 30, 2015.
Dividend
In a separate press release on November 01, 2016, Royal Dutch Shell's Board of Directors announced interim dividend for Q3 FY16 of $0.47 per A ordinary share ("A Share") and B ordinary share ("B Share"). The dividend is payable on December 16, 2016, to all A Shareholder and B Shareholders of record as of November 11, 2016. Additionally, all ADS holders will receive dividend of $0.94 per ADS as each ADS represents two ordinary shares.
Stock Performance
On Tuesday, the company's class A stock closed the trading session at $50.51, slipping 1.65% from its previous closing price of $51.36. A total volume of 3.95 million shares have exchanged hands. Royal Dutch Shell's stock price advanced 3.21% in the past three months, 3.64% in the last six months, and 5.05% in the previous twelve months. The company's shares are trading at a PE ratio of 47.74 and have a dividend yield of 7.44%.
On the same day, the company's Class B shares were down 1.42%, closing the trading session at $53.40. A total volume of 1.57 million shares were traded. Royal Dutch Shell's B stock price advanced 3.99% in the last three months and 8.25% in the past six months. Moreover, since the start of the year, shares of the company have surged 22.83%.
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