Europe’s largest oil company Royal Dutch Shell plc reported second-quarter earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) — of $1.42. The bottom line came in ahead of the Zacks Consensus Estimate of $1.31 and dwarfed the year-ago profit of 16 cents per ADS.
The Hague-based Shell reported revenues of $$61.8 billion that surged 90.1% from the second-quarter 2020 sales of $32.5 billion.
The outperformances were mainly backed by stronger commodity prices.
Royal Dutch Shell hiked its quarterly dividend by 38.3% to 24 cents per share and launched a $2 billion stock repurchase program to be completed by the end of 2021. The company’s earnings and cash flows have been steadily improving on the back of higher crude realizations and a recovery in consumption.
Financial Performance
As of Jun 30, 2021, the Zacks Rank #3 (Hold) company, which trimmed its payout for the first time since World War II in April last year, had $34.1 billion in cash and $100.1 billion in debt (including short-term debt). Net debt-to-capitalization was approximately 27.7%, down from 32.7% a year ago.
You can see the complete list of today’s Zacks #1 Rank stocks here.
During the quarter under review, Shell generated cash flow from operations of $12.6 billion, returned $1.3 billion to its shareholders through dividends and spent $4.4 billion cash on capital projects.
The company’s cash flow from operations rocketed 392.3% from the year-earlier level. Meanwhile, the group raked in $9.7 billion in free cash flow during the second quarter, up significantly from a mere $243 million a year ago.
Guidance
Shell expects third-quarter 2021 upstream volumes of 2,100-2,250 MBOE/d, while Integrated Gas production is expected between 870 MBOE/d and 920 MBOE/d. The company also foresees Oil Products sales volumes of 4,300-5,300 thousand barrels per day, Chemicals sales volumes of 3,600-3,900 thousand tons and refinery utilization in the range of 73-81%.
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) will come up with quarterly numbers early next week.
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Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Europe’s largest oil company Royal Dutch Shell plc reported second-quarter earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) — of $1.42. The bottom line came in ahead of the Zacks Consensus Estimate of $1.31 and dwarfed the year-ago profit of 16 cents per ADS.
The Hague-based Shell reported revenues of $$61.8 billion that surged 90.1% from the second-quarter 2020 sales of $32.5 billion.
The outperformances were mainly backed by stronger commodity prices.
Royal Dutch Shell hiked its quarterly dividend by 38.3% to 24 cents per share and launched a $2 billion stock repurchase program to be completed by the end of 2021. The company’s earnings and cash flows have been steadily improving on the back of higher crude realizations and a recovery in consumption.
Financial Performance
As of Jun 30, 2021, the Zacks Rank #3 (Hold) company, which trimmed its payout for the first time since World War II in April last year, had $34.1 billion in cash and $100.1 billion in debt (including short-term debt). Net debt-to-capitalization was approximately 27.7%, down from 32.7% a year ago.
You can see the complete list of today’s Zacks #1 Rank stocks here.
During the quarter under review, Shell generated cash flow from operations of $12.6 billion, returned $1.3 billion to its shareholders through dividends and spent $4.4 billion cash on capital projects.
The company’s cash flow from operations rocketed 392.3% from the year-earlier level. Meanwhile, the group raked in $9.7 billion in free cash flow during the second quarter, up significantly from a mere $243 million a year ago.
Guidance
Shell expects third-quarter 2021 upstream volumes of 2,100-2,250 MBOE/d, while Integrated Gas production is expected between 870 MBOE/d and 920 MBOE/d. The company also foresees Oil Products sales volumes of 4,300-5,300 thousand barrels per day, Chemicals sales volumes of 3,600-3,900 thousand tons and refinery utilization in the range of 73-81%.
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) will come up with quarterly numbers early next week.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
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