Reports Earnings: Europe’s largest oil company Royal Dutch Shell plc (RDS-A - Free Report) reported earnings per ADS (on a current cost of supplies basis, excluding items – the market’s preferred measure) of 24 cents. This compares with the Zacks Consensus Estimate of a loss of 6 cents.
Estimate Revision Trend & Surprise History: The Zacks Consensus Estimate for third-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 52.41%, on average. This is depicted in the graph below:
Royal Dutch Shell PLC Price and EPS Surprise
Revenue Plunges: Revenues of $44 billion were 49% below the third-quarter 2019 sales of $86.6 billion.
Key Stats: Upstream segment recorded a loss of $884 million (excluding items) during the quarter, compared to the profit of $833 million (adjusted) achieved in the year-ago period. Shell’s upstream volumes averaged 2,203 thousand oil-equivalent barrels per day (MBOE/d), down 14% from the year-ago period. At $37.92 per barrel, the group’s worldwide realized liquids prices were 32% below the year-earlier levels while natural gas prices were down 37%.
In the Oil Products segment, the Anglo-Dutch super-major reported an adjusted income of $1.7 billion, 16% lower than the year-ago period.
The Integrated Gas unit reported adjusted income of $768 million, down 71% from the $2.7 billion in July-September quarter of 2019.
Meanwhile, the Chemicals segment recorded a profit of $227 million (excluding items) during the quarter, edging up 1% from the year-ago period.
The oil major’s operating cash flow fell 15% from the year-earlier level to $10.4 billion.
Dividend Update: Royal Dutch Shell boosted its quarterly dividend by about 4% to 16.65 cents after cutting it by two-thirds earlier this year.
Zacks Rank: Currently, Royal Dutch Shell carries a Zacks Rank #3 (Hold).
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