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An Earnings Beat: Europe’s largest oil company Shell plc (SHEL - Free Report) reported earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) — of $1.66, above the Zacks Consensus Estimate of $1.40.
Estimate Revision Trend & Surprise History: The Zacks Consensus Estimate for fourth-quarter bottom line has been revised 0.7% upward in the last seven days.
Shell beat the Zacks Consensus Estimate for earnings in two of the last four quarters but missed twice, which resulted in a negative earnings surprise of 13.5%, on average. This is depicted in the graph below:
Revenue Soars: Revenues of $90.2 billion essentially doubled from the fourth-quarter 2020 sales of $45 billion.
Key Stats: Upstream segment recorded a profit of $2.8 billion (excluding items) during the quarter, turning around from a loss of $748 million (adjusted) reported in the year-ago period. Shell’s upstream volumes averaged 2,161 thousand oil-equivalent barrels per day (MBOE/d), down 8.9% from the year-ago period. At $73.49 per barrel, the group’s worldwide realized liquids prices were 80.3% above the year-earlier levels while natural gas prices more than tripled.
In the Oil Products segment, the London-headquartered super-major reported adjusted income of $555 million, 2.8% higher than the year-ago period.
The Integrated Gas unit reported adjusted income of $4.1 billion, jumping from the $1.1 billion in October-December quarter of 2020.
Meanwhile, the Chemicals segment recorded a loss of $42 million (excluding items) during the quarter, compared to the year-ago earnings of $381 million.
The oil major’s operating cash flow increased 30% from the year-earlier level to $8.2 billion.
Share Buyback & Dividend: Shell repurchased $1.7 billion of shares in the fourth quarter. The energy group also announced plans to buy back $8.5 billion worth of shares in the first half of this year that includes the recent pledge to return $5.5 billion from the Permian sale proceeds.
Shell declared fourth-quarter dividend of 24 cents per share and expects to hike it by approximately 4% in the next quarter.
Zacks Rank: Currently, Shell carries a Zacks Rank #2 (Buy).
Image: Bigstock
Shell (SHEL) Q4 Earnings Beat Estimates, Boosts Buyback
An Earnings Beat: Europe’s largest oil company Shell plc (SHEL - Free Report) reported earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) — of $1.66, above the Zacks Consensus Estimate of $1.40.
Estimate Revision Trend & Surprise History: The Zacks Consensus Estimate for fourth-quarter bottom line has been revised 0.7% upward in the last seven days.
Shell beat the Zacks Consensus Estimate for earnings in two of the last four quarters but missed twice, which resulted in a negative earnings surprise of 13.5%, on average. This is depicted in the graph below:
Royal Dutch Shell PLC Price and EPS Surprise
Royal Dutch Shell PLC price-eps-surprise | Royal Dutch Shell PLC Quote
Revenue Soars: Revenues of $90.2 billion essentially doubled from the fourth-quarter 2020 sales of $45 billion.
Key Stats: Upstream segment recorded a profit of $2.8 billion (excluding items) during the quarter, turning around from a loss of $748 million (adjusted) reported in the year-ago period. Shell’s upstream volumes averaged 2,161 thousand oil-equivalent barrels per day (MBOE/d), down 8.9% from the year-ago period. At $73.49 per barrel, the group’s worldwide realized liquids prices were 80.3% above the year-earlier levels while natural gas prices more than tripled.
In the Oil Products segment, the London-headquartered super-major reported adjusted income of $555 million, 2.8% higher than the year-ago period.
The Integrated Gas unit reported adjusted income of $4.1 billion, jumping from the $1.1 billion in October-December quarter of 2020.
Meanwhile, the Chemicals segment recorded a loss of $42 million (excluding items) during the quarter, compared to the year-ago earnings of $381 million.
The oil major’s operating cash flow increased 30% from the year-earlier level to $8.2 billion.
Share Buyback & Dividend: Shell repurchased $1.7 billion of shares in the fourth quarter. The energy group also announced plans to buy back $8.5 billion worth of shares in the first half of this year that includes the recent pledge to return $5.5 billion from the Permian sale proceeds.
Shell declared fourth-quarter dividend of 24 cents per share and expects to hike it by approximately 4% in the next quarter.
Zacks Rank: Currently, Shell carries a Zacks Rank #2 (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 Shell earnings report later!