Shell makes progress in difficult industry environment

06 Nov '12

3 min read

Royal Dutch Shell plc released its third quarter results and third quarter interim dividend announcement for 2012.

Highlights:

• Royal Dutch Shell’s third quarter 2012 earnings, on a current cost of supplies (CCS) basis, were $6.1 billion compared with $7.2 billion in the same quarter a year ago.

• Third quarter 2012 CCS earnings, excluding identified items (see page 6), were $6.6 billion compared with $7.0 billion in the third quarter 2011, a decrease of 6%. Basic CCS earnings per share excluding identified items decreased by 6% versus the same quarter a year ago.

• Cash flow from operating activities for the third quarter 2012 was $9.5 billion. Cash flow from operating activities excluding movements in working capital was $11.7 billion in the third quarter 2012.

• Net capital investment (see Note 1) for the third quarter 2012 was $8.0 billion. Capital investment for the third quarter 2012 was some $8.8 billion and proceeds from divestments were $0.8 billion.

• Total dividends distributed in the quarter were $2.8 billion, of which some $0.8 billion were settled under the Scrip Dividend Programme. During the third quarter 4.3 million shares were bought back for cancellation for a consideration of some $0.1 billion.

• Gearing at the end of the third quarter 2012 was 8.6%.

• A third quarter 2012 dividend has been announced of $0.43 per ordinary share and $0.86 per American Depository Share (ADS), an increase of 2.4% compared with the third quarter 2011.

Royal Dutch Shell Chief Executive Officer Peter Voser commented:

“Shell is driving a long-term and consistent strategy, against a backdrop of volatile energy markets. Our profits pay for substantial investments in new energy supplies, and they pay dividends for our shareholders.

“Our earnings were driven by lower oil and gas prices, and lower chemicals margins, which offset the benefits of our operating performance, underlying growth in oil and gas production, and higher results in Integrated Gas and Oil Products.

“We’ve made progress with our Alaska exploration programme, commencing drilling operations in the Beaufort and Chukchi seas, as the industry continues to assess offshore potential there. This will be a multi-year exploration programme, demonstrating Shell’s commitments to high standards on sustainable development and safety.”

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