Europe’s largest oil company Royal Dutch Shell plc reported third-quarter earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) of 24 cents. The Zacks Consensus Estimate was of a loss of 6 cents. The outperformance reflects strong retail gains.
However, the bottom line compared unfavorably with the year-ago profit of $1.18 per share. The underperformance mainly stemmed from the coronavirus-induced commodity price collapse and lower production.
The Hague-based Shell reported revenues of $44 billion, which were 49% below third-quarter 2019 sales of $86.6 billion.
On an encouraging note for investors, Royal Dutch Shell boosted its quarterly dividend by about 4% to 16.65 cents after cutting it by two-thirds earlier this year.
Financial Performance
As of Sep 30, 2020, the Zacks Rank #3 (Hold) company, which earlier trimmed its payout for the first time since World War II in April, had $35.7 billion in cash and $109.1 billion in debt (including short-term debt). Net debt-to-capitalization ratio was approximately 31.4%, up from 27.9% a year ago.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
During the quarter under review, Shell generated cash flow from operations of $10.4 billion, returned $1.2 billion to its shareholders through dividends and spent $3.7 billion cash on capital projects.
The company’s cash flow from operations fell 15% from the year-earlier level. Meanwhile, the group raked in $76.billion in free cash flow during the third quarter, decreasing from $10.1 billion a year ago.
Guidance
Shell expects fourth-quarter 2020 upstream volumes of 2,300-2,500 MBOE/d, while Integrated Gas production is expected between 830 MBOE/d and 870 MBOE/d.
Earnings Schedules of Other Oil Supermajors
Among the big integrated players, ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) are scheduled to release tomorrow, while continental rival BP plc (BP - Free Report) came up with better-than-expected bottom line numbers earlier this week.
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Europe’s largest oil company Royal Dutch Shell plc reported third-quarter earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) of 24 cents. The Zacks Consensus Estimate was of a loss of 6 cents. The outperformance reflects strong retail gains.
However, the bottom line compared unfavorably with the year-ago profit of $1.18 per share. The underperformance mainly stemmed from the coronavirus-induced commodity price collapse and lower production.
The Hague-based Shell reported revenues of $44 billion, which were 49% below third-quarter 2019 sales of $86.6 billion.
On an encouraging note for investors, Royal Dutch Shell boosted its quarterly dividend by about 4% to 16.65 cents after cutting it by two-thirds earlier this year.
Financial Performance
As of Sep 30, 2020, the Zacks Rank #3 (Hold) company, which earlier trimmed its payout for the first time since World War II in April, had $35.7 billion in cash and $109.1 billion in debt (including short-term debt). Net debt-to-capitalization ratio was approximately 31.4%, up from 27.9% a year ago.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
During the quarter under review, Shell generated cash flow from operations of $10.4 billion, returned $1.2 billion to its shareholders through dividends and spent $3.7 billion cash on capital projects.
The company’s cash flow from operations fell 15% from the year-earlier level. Meanwhile, the group raked in $76.billion in free cash flow during the third quarter, decreasing from $10.1 billion a year ago.
Guidance
Shell expects fourth-quarter 2020 upstream volumes of 2,300-2,500 MBOE/d, while Integrated Gas production is expected between 830 MBOE/d and 870 MBOE/d.
Earnings Schedules of Other Oil Supermajors
Among the big integrated players, ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) are scheduled to release tomorrow, while continental rival BP plc (BP - Free Report) came up with better-than-expected bottom line numbers earlier this week.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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