Royal Dutch Shell plc released its third quarter results.
Key features of the Third quarter 2012
- Third quarter 2012 CCS earnings were $6,127 million, 15% lower than in the same quarter a year ago.
- Third quarter 2012 CCS earnings, excluding identified items, were $6,559 million compared with $7,001 million in the third quarter 2011, a decrease of 6%.
- Basic CCS earnings per share decreased by 16% versus the same quarter a year ago.
- 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, compared with $11.6 billion in the same quarter last year. Excluding movements in working capital, cash flow from operating activities in the third quarter 2012 was $11.7 billion, compared with $10.6 billion in the same quarter last year.
- Net capital investment 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 third quarter 2012 were $2.8 billion, of which some $0.8 billion were settled by issuing some 22.3 million Class A shares under the Scrip Dividend Programme for the second quarter 2012. Under the company’s share buyback programme some 4.3 million Class B shares were bought back for cancellation during the quarter for a consideration of some $0.1 billion.
- Return on average capital employed on a reported income basis was 12.9% at the end of the third quarter 2012.
- Gearing was 8.6% at the end of the third quarter 2012 versus 10.8% at the end of the third quarter 2011.
- Oil and gas production for the third quarter 2012 was 2,982 thousand boe/d. Excluding the impact of divestments, exits, PSC price effects and security impacts onshore Nigeria, third quarter 2012 production volumes were 1% higher compared with the same period last year.
- LNG sales volumes of 4.97 million tonnes in the third quarter 2012 were 4% higher than in the same quarter a year ago.
- Oil products sales volumes in the third quarter 2012 were 1% lower compared with the third quarter 2011.
- Chemicals product sales volumes in the third quarter 2012 decreased by 3% compared with the same quarter a year ago.
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.
“We continue to refresh our portfolio, launching new oil and gas developments, making new exploration discoveries, purchasing new liquids-rich shale acreage and increasing our positions in oil and gas fields where we can add value with our innovation and scale. We are also continuing with our capital efficiency drive, selling down positions where others can add more value. We have announced around $6 billion of acquisitions and new acreage and also around $6 billion of asset sales in 2012, which will better position Shell for growth.
“I am pleased with our progress in a difficult industry environment. There is more to come from Shell.”
LNG World News Staff, November 01, 2012; Image: Shell