Have you been eager to see how Royal Dutch Shell plc – Europe’s largest oil company – performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Hague, Netherlands-based behemoth’s earnings release this morning:
About Royal Dutch Shell: Royal Dutch Shell owns one of the largest integrated oil and gas businesses in the world. The group has operations all over the world and is involved in various activities related to oil and natural gas, chemicals, power generation, renewable energy resources, and other energy related businesses. Royal Dutch Shell divides its operations into four major segments: Upstream, Downstream, Integrated Gas and Corporate.
In Feb 2016, Shell acquired UK’s third-largest energy player BG Group for a total consideration of $50 billion.
Zacks Rank & Surprise History: Currently, Royal Dutch Shell has a Zacks Rank #2 (Buy) but that could change following its third quarter 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Coming to earnings surprise history, the company has a dismal record: its missed estimates in each of the last four quarters resulting in an average negative surprise of 27.36%.
Estimate Revision Trend: Investors should note that the earnings estimate revisions for Royal Dutch Shell depicted pessimism prior to the earnings release. The Zacks Consensus Estimate fell 5% over the last 30 days.
We have highlighted some of the key details from the just-released announcement below:
A Higher-than-Expected Profit: Earnings per ADS (on a current cost of supplies basis, excluding items) came in at 70 cents, well above the Zacks Consensus Estimate of 54 cents.
Revenue Came in Lower than Expected: Revenues of $61,855 million were below the Zacks Consensus Estimate of $67,997 million.
Key Stats: Upstream segment recorded a profit of $4 million (excluding items) during the quarter, turning around from the $582 million (adjusted) loss in the year-ago period. Shell’s upstream volumes averaged 2,683 thousand oil-equivalent barrels per day (MBOE/d), 21% higher than the year-ago period. The group’s worldwide realized liquids prices were 11% below the year-earlier levels, while natural gas prices were down 31%.
In the downstream segment, the Anglo-Dutch super-major reported adjusted income of $2,078 million, 21% less than the $2,617 million earned in the year-ago period.
The Integrated Gas unit reported adjusted income of $931 million as against $918 million in Jul-Sep quarter of 2015.
2017 Capital Expenditure: Next year, Royal Dutch Shell expects to spend $25 billion on capital investments – at the bottom of its previously stated range.
Check back later for our full write up on this Royal Dutch Shell earnings report later!
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Royal Dutch Shell (RDS.A) Beats Q3 Earnings on Higher Output
Have you been eager to see how Royal Dutch Shell plc – Europe’s largest oil company – performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Hague, Netherlands-based behemoth’s earnings release this morning:
About Royal Dutch Shell: Royal Dutch Shell owns one of the largest integrated oil and gas businesses in the world. The group has operations all over the world and is involved in various activities related to oil and natural gas, chemicals, power generation, renewable energy resources, and other energy related businesses. Royal Dutch Shell divides its operations into four major segments: Upstream, Downstream, Integrated Gas and Corporate.
In Feb 2016, Shell acquired UK’s third-largest energy player BG Group for a total consideration of $50 billion.
Zacks Rank & Surprise History: Currently, Royal Dutch Shell has a Zacks Rank #2 (Buy) but that could change following its third quarter 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Coming to earnings surprise history, the company has a dismal record: its missed estimates in each of the last four quarters resulting in an average negative surprise of 27.36%.
ROYAL DTCH SH-A Price and EPS Surprise
ROYAL DTCH SH-A Price and EPS Surprise | ROYAL DTCH SH-A Quote
Estimate Revision Trend: Investors should note that the earnings estimate revisions for Royal Dutch Shell depicted pessimism prior to the earnings release. The Zacks Consensus Estimate fell 5% over the last 30 days.
We have highlighted some of the key details from the just-released announcement below:
A Higher-than-Expected Profit: Earnings per ADS (on a current cost of supplies basis, excluding items) came in at 70 cents, well above the Zacks Consensus Estimate of 54 cents.
Revenue Came in Lower than Expected: Revenues of $61,855 million were below the Zacks Consensus Estimate of $67,997 million.
Key Stats: Upstream segment recorded a profit of $4 million (excluding items) during the quarter, turning around from the $582 million (adjusted) loss in the year-ago period. Shell’s upstream volumes averaged 2,683 thousand oil-equivalent barrels per day (MBOE/d), 21% higher than the year-ago period. The group’s worldwide realized liquids prices were 11% below the year-earlier levels, while natural gas prices were down 31%.
In the downstream segment, the Anglo-Dutch super-major reported adjusted income of $2,078 million, 21% less than the $2,617 million earned in the year-ago period.
The Integrated Gas unit reported adjusted income of $931 million as against $918 million in Jul-Sep quarter of 2015.
2017 Capital Expenditure: Next year, Royal Dutch Shell expects to spend $25 billion on capital investments – at the bottom of its previously stated range.
Check back later for our full write up on this Royal Dutch Shell earnings report later!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>