Have you been eager to see how Royal Dutch Shell plc (RDS.A - Free Report) – Europe’s largest oil company – performed in Q2 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 #5 (Strong Sell) but that could change following its second quarter 2017 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 beaten estimates in just one of the last four quarters.
Estimate Revision Trend: Investors should note that the earnings estimates for Royal Dutch Shell was unmoved prior to the earnings release. The Zacks Consensus Estimate remained the same over the last 7 days.
We have highlighted some of the key details from the just-released announcement below:
Profits Climb: Earnings per ADS (on a current cost of supplies basis, excluding items) came in at 46 cents, breezing past the year-ago profit of 6 cents.
Revenue Improves from Last Year: Revenues of $72,702 million were 21% above the second-quarter 2016 sales of $60,271 million.
Key Stats: Upstream segment recorded a profit of $339 million (excluding items) during the quarter, turning around from the $1,325 million (adjusted) loss in the year-ago period. Shell’s upstream volumes averaged 2,672 thousand oil-equivalent barrels per day (MBOE/d), 2% higher than the year-ago period. The group’s worldwide realized liquids prices were 16% above the year-earlier levels while natural gas prices were up 31%.
In the downstream segment, the Anglo-Dutch super-major reported adjusted income of $2,529 million, 39% more than the $1,816 million earned in the year-ago period.
The Integrated Gas unit reported adjusted income of $1,169 million as against $868 million in Apr-Jun quarter of 2016.
Share Performance: Royal Dutch Shell has gained 0.9% of its value during the second quarter versus the 3.1% decline of its industry.
Check back later for our full write up on this Royal Dutch Shell earnings report later!
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