Royal Dutch Shell announces 4th Quarter full year 2010 results

Royal Dutch Shell announces 4th Quarter and full year 2010 results

3:44 PM, 9th June 2011
Royal Dutch Shell announces 4th Quarter and full year 2010 results
Peter Voser, Chief Executive Officer, Royal Dutch Shell.

LONDON, UK: Royal Dutch Shell’s fourth quarter 2010 earnings, on a current cost of supplies (CCS) basis, were $ 5.7 billion compared to $1.2 billion a year ago. Basic CCS earnings per share increased to $0.93 from $0.19 in the fourth quarter 2009. The 4th quarter 2010 CCS earnings, were $4.1billion compared to $2.8 billion in the fourth quarter 2009. Further, the full year 2010 earnings, on a current cost of supplies (CCS) basis, were $18.6 billion compared to $9.8 billion a year ago. Basic CCS earnings per share increased by 90 per cent versus a year ago. Shell’s cash flow from operating activities, excluding net working capital movements, for the 4th quarter 2010 was $6.2 billion, compared to $4.4 billion in the same quarter last year.


On the same basis, full year 2010 cash flow from operating activities was $33.3 billion compared to $23.8 billion in 2009. The net capital investment for the quarter was $1.5 billion. Total cash dividends paid to shareholders during the fourth quarter 2010 were $2.0 billion. Some 18.3 million class A ordinary shares, equivalent to $0.6 billion, were issued under the scrip dividend programme for the third quarter 2010. A fourth quarter 2010 dividend has been announced of $0.42 per ordinary share, unchanged from the US dollar dividend per share for the same period in 2009. The first quarter 2011 dividend is expected to be declared at $0.42 per share.


Royal Dutch Shell Chief Executive Officer Peter Voser commented: “Our 2010 earnings increased substantially from 2009 levels, driven by improving industry fundamentals, and Shell’s production growth and cost performance. Our 2010 oil and natural gas production volumes were 3.3 million boe/d, an increase of 5 per cent. LNG sales volumes increased by 25 per cent, with continued growth in Downstream. Fourth quarter and full year 2010 earnings were supported by higher oil prices and chemicals margins. However, our earnings were impacted by weak refining margins, pressure on certain regional natural gas prices, and volatility in Downstream marketing margins as a result of rising oil prices. In 2010 Shell made good progress on implementing strategy, improving near-term performance, delivering a new wave of production growth, and maturing the next generation of growth options for shareholders.”


Turning to growth delivery, Voser commented: “Shell’s industry-leading investment programme is laying down firm foundations for our shareholders and our customers in the future. In 2010 we started up 6 key projects in Upstream and Downstream. In Qatar, in early 2011, we achieved first offshore gas production at the Qatargas 4 LNG facility. Major construction is complete, on schedule, at the Pearl Gas-to-Liquids (GTL) plant, and commissioning for start-up is underway as planned. These projects underpin Shell’s targets for an 11 per cent increase from 2009 to 2012 oil and natural gas production, and enhancement of the Downstream portfolio. This growth will drive a 50-80 per cent increase in cashflow from operations from 2009 to 2012, measured at $60-$80 oil prices. These are ambitious targets, but we are on track.”


Voser added: “Shell has made good progress on generating longer-term growth during 2010. Shell took two final investment decisions in 2010 for deepwater projects, the Mars B project in the Gulf of Mexico, USA and BC-10 Phase 2 project in Brazil. Shell made $7 billion of acquisitions, and invested $3 billion in exploration activities in 2010. The acquisition of East Resources takes our resources potential in North America tight gas to some 40 tcfe. In partnership with PetroChina, we purchased Arrow Energy, an Australian coal bed methane and LNG player, and entered into new tight gas and coal bed methane acreage in China. Shell and its partners signed contracts to develop the giant Majnoon and West Qurna fields in Iraq. Shell’s explorers made 8 discoveries in 2010, in particular the Appomatox discovery in the Gulf of Mexico, with more than 250 million boe resources potential. In Downstream, we progressed a marketing and biofuels joint venture with Cosan in Brazil, and a new 2 million tonnes per year petrochemicals project in Qatar.”


Voser commented: “We continue to invest for medium-term growth to create value for our shareholders. I expect 2011 net capital investment of some $25-27 billion, including a $1.6 billion investment for the Cosan joint venture. Dividend will be $0.42 per share for the fourth quarter 2010 and is expected to be $0.42 per share for the first quarter 2011. In 2010 Shell declared dividends of $10.2 billion, the largest in our sector, underlining our commitment to shareholder returns.”

(C) WOC News



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