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Shell (RDS.A) Q3 Earnings Beat on Downstream, Gas Strength

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An Earnings Beat: Europe’s largest oil company Royal Dutch Shell plc (RDS.A - Free Report) reported earnings per ADS (on a current cost of supplies basis, excluding items – the market’s preferred measure) of $1.18, above the Zacks Consensus Estimate of 98 cents.

Estimate Revision Trend & Surprise History: The stock had seen the Zacks Consensus Estimate for third-quarter earnings being revised 6.5% upward over the last 30 days.

Coming to earnings surprise history, the blue-chip company has a mixed record: its beaten estimates in two of the last four quarters, as shown in the chart below:

Royal Dutch Shell PLC Price and EPS Surprise


Royal Dutch Shell PLC Price and EPS Surprise

Royal Dutch Shell PLC price-eps-surprise | Royal Dutch Shell PLC Quote

Revenues: Revenues of $89.5 billion were 11.8% below the third-quarter 2018 sales of $101.5 billion.

Key Stats: Upstream segment recorded a profit of $907 million (excluding items) during the quarter, down 51.9% from the $1.9 billion (adjusted) achieved in the year-ago period. Shell’s upstream volumes averaged 2,606 thousand oil-equivalent barrels per day (MBOE/d), 2.5% lower than the year-ago period. At $55.99 per barrel, the group’s worldwide realized liquids prices were 17.9% below the year-earlier levels while natural gas prices were down 14.8%.

In the downstream segment – that focuses on refining, marketing and retailing – the Anglo-Dutch super-major reported adjusted income of $2.2 billion, 7.1% more than the year-ago period.

The Integrated Gas unit reported adjusted income of $2.7 billion, up 16.7% from the $2.3 billion in July-September quarter of 2018.

The oil major’s operating cash flow edged up 1.3% from the year-earlier level to $12.3 billion.

Buyback Plans: As part of the company’s $25 billion buyback program during the period 2018-2020, Shell will repurchase $2.75 billion worth of shares up to Jan 27 in the sixth installment.

Zacks Rank: Currently, Royal Dutch Shell carries a Zacks Rank #3 (Hold).

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this Royal Dutch Shell earnings report later!

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