An Earnings Beat: Europe’s largest oil company Royal Dutch Shell (LON:RDSa) plc RDS.A reported earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) — of 82 cents, above the Zacks Consensus Estimate of 79 cents.
Estimate Revision Trend & Surprise History: The Zacks Consensus Estimate for first-quarter bottom line remained the same in the last seven days.
As far as earnings surprises are concerned, Royal Dutch Shell beat the Zacks Consensus Estimate in three of the last four quarters and missed in the other, delivering an earnings surprise of 163.88%, on average. This is depicted in the graph below:
Revenue Falls: Revenues of $59.1 billion were 3% below the first-quarter 2020 sales of $61 billion.
Key Stats: Upstream segment recorded a profit of $963 million (excluding items) during the quarter, surging from $291 million (adjusted) achieved in the year-ago period. Shell’s upstream volumes averaged 2,462 thousand oil-equivalent barrels per day (MBOE/d), down 9.2% from the year-ago period. At $55.17 per barrel, the group’s worldwide realized liquids prices were 17.7% above the year-earlier levels while natural gas prices were up 12.7%.
In the Oil Products segment, the Anglo-Dutch super-major reported adjusted income of $877 million, 35.7% lower than the year-ago period.
The Integrated Gas unit reported adjusted income of $1.4 billion, down 34% from the $2.1 billion in January-March quarter of 2020.
Meanwhile, the Chemicals segment recorded a profit of $730 million (excluding items) during the quarter, soaring from the year-ago earnings of $148 million.
The oil major’s operating cash flow fell 44.2% from the year-earlier level to $8.3 billion.
Dividend Update: As per its February announcement, Royal Dutch Shell boosted its quarterly dividend by about 4% to 17.35 cents per share.
Zacks Rank: Currently, Royal Dutch Shell carries a Zacks Rank #1 (Strong Buy).
(You can see the complete list of today’s Zacks #1 Rank stocks here.)
Check back later for our full write up on this Royal Dutch Shell earnings report later!
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Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report
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