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Shell 2nd Quarter 2019 and Half Year Unaudited Results

Practical discussions about equity High-Yield Portfolios (HYP) for income
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idpickering
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Shell 2nd Quarter 2019 and Half Year Unaudited Results

#240951

Postby idpickering » August 1st, 2019, 7:09 am

Compared with the second quarter 2018, CCS earnings attributable to shareholders excluding identified items were $3.5 billion, reflecting lower realised oil, gas and LNG prices, weaker realised chemicals and refining margins as well as higher provisions, partly offset by improved production. Earnings also included a negative impact of $63 million related to the implementation of IFRS 16.

Cash flow from operating activities for the second quarter 2019 was $11.0 billion and included positive working capital movements of $0.6 billion. Compared with the second quarter 2018, cash flow from operating activities excluding working capital movements mainly reflected lower earnings, partly offset by reduced cash margining outflows on commodity derivatives. This also included a positive impact of $1.0 billion related to the implementation of IFRS 16.

Total dividends distributed to shareholders in the quarter were $3.8 billion. Today, Shell launches the next tranche of the share buyback programme, with a maximum aggregate consideration of $2.75 billion in the period up to and including October 28, 2019. In aggregate, since the launch of the share buyback programme, almost 294 million A ordinary shares have been bought back for cancellation for a consideration of $9.25 billion.

Royal Dutch Shell Chief Executive Officer Ben van Beurden commented: “We have delivered good cash flow performance, despite earnings volatility, in a quarter that has seen challenging macroeconomic conditions in refining and chemicals as well as lower gas prices. This quarter we achieved some key milestones, such as the start-up of Appomattox and the first LNG cargo from Prelude. These add to our competitive portfolio, which is expected to generate additional cash in the coming quarters.



Ex div 15 Aug, paid 23 Sep.

https://www.investegate.co.uk/royal-dut ... 0000PE266/

Also;

Royal Dutch Shell Second Quarter 2019 Interim Dividend

The Board of Royal Dutch Shell plc (“RDS” or the “Company”) today announced an interim dividend in respect of the second quarter of 2019 of US$0.47 per A ordinary share (“A Share”) and B ordinary share (“B Share”), equal to the US dollar dividend for the same quarter last year.


https://www.investegate.co.uk/royal-dut ... 0100P7A0A/

funduffer
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Re: Shell 2nd Quarter 2019 and Half Year Unaudited Results

#240985

Postby funduffer » August 1st, 2019, 9:08 am

Thanks for posting, Ian - I do appreciate your efforts in sharing these results/dividend announcements.

Another $0.47 dividend. Seems like RDSB dividends have been frozen for years.

Still, with the falling pound it will probably be worth a little bit more (in £'s) than the last one.

FD

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Re: Shell 2nd Quarter 2019 and Half Year Unaudited Results

#240988

Postby funduffer » August 1st, 2019, 9:15 am

Just checking my records, it was June 2014 when the quarterly dividend last increased (from $0.45 to $0.47).

A full five years of frozen dividends (in $ of course, not in £)!

A lot of questions for the LTBH investor about the decline of oil:

Will oil prices go up or down?
Will supply reduce faster or slower than demand?
How will big oil monoliths like Shell adapt?

Probably the wrong board for these questions, but though provoking nonetheless.

FD

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Re: Shell 2nd Quarter 2019 and Half Year Unaudited Results

#241000

Postby pyad » August 1st, 2019, 10:53 am

funduffer wrote:Just checking my records, it was June 2014 when the quarterly dividend last increased (from $0.45 to $0.47).

A full five years of frozen dividends (in $ of course, not in £)!

A lot of questions for the LTBH investor about the decline of oil:

Will oil prices go up or down?
Will supply reduce faster or slower than demand?
How will big oil monoliths like Shell adapt?

Probably the wrong board for these questions, but though provoking nonetheless.

FD

As you suggest with your last sentence, I doubt that your questions, which in any case have no reliable answer, will concern HYPers. A large proportion, if not all, HYPable shares could have long term questions raised about them.

On the matter of dividend increases, the company said this at the "Management Day" meeting in early June:

"Shell expects to increase the dividend per share when there is line of sight to the completion of the $25 billion share buyback programme."

I presume you aware that the buybacks themselves constitute a valuable return to shareholders from which we HYPers will benefit handsomely. ;)

Dod101
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Re: Shell 2nd Quarter 2019 and Half Year Unaudited Results

#241002

Postby Dod101 » August 1st, 2019, 11:04 am

pyad wrote:I presume you aware that the buybacks themselves constitute a valuable return to shareholders from which we HYPers will benefit handsomely. ;)


HYPers, like all shareholders, will benefit indirectly at least from this large share buyback programme. It will considerably reduce the number of shares in issue and thus reduce the total cost of the dividend. That should make future increases more likely and is of course basically what Shell said in the quote from June.

Share buybacks also give all continuing shareholders a slightly bigger share of the value of the Royal Dutch Shell enterprise.

Dod

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Re: Shell 2nd Quarter 2019 and Half Year Unaudited Results

#241004

Postby monabri » August 1st, 2019, 11:10 am

Just to set into context when this might be:-

https://www.londonstockexchange.com/exc ... 71599.html

"The company’s intention is to buy back at least $25 billion of its shares by the end of 2020, subject to further progress with debt reduction and oil price conditions."

(my bold & underlining).

mike
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Re: Shell 2nd Quarter 2019 and Half Year Unaudited Results

#241008

Postby mike » August 1st, 2019, 11:19 am

monabri wrote:Just to set into context when this might be:-

https://www.londonstockexchange.com/exc ... 71599.html

"The company’s intention is to buy back at least $25 billion of its shares by the end of 2020, subject to further progress with debt reduction and oil price conditions."

(my bold & underlining).


Still a trifling sum of $15.75 billion to go then !
Today, Shell launches the next tranche of the share buyback programme, with a maximum aggregate consideration of $2.75 billion in the period up to and including October 28, 2019. In aggregate, since the launch of the share buyback programme, almost 294 million A ordinary shares have been bought back for cancellation for a consideration of $9.25 billion.

https://www.investegate.co.uk/royal-dutch-shell--rdsa-/prn/2nd-quarter-2019-and-half-year-unaudited-results/20190801070000PE266/

funduffer
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Re: Shell 2nd Quarter 2019 and Half Year Unaudited Results

#241074

Postby funduffer » August 1st, 2019, 3:29 pm

pyad wrote:
On the matter of dividend increases, the company said this at the "Management Day" meeting in early June:

"Shell expects to increase the dividend per share when there is line of sight to the completion of the $25 billion share buyback programme."

I presume you aware that the buybacks themselves constitute a valuable return to shareholders from which we HYPers will benefit handsomely. ;)


Thanks for pointing this out, I had forgotten there was a share buyback going on.

I am not a big fan of share buybacks, even if they theoretically offer a return to investors. They are too full of smoke and mirrors and at the end of the buyback it is often impossible to tell if there has been any real positive effect on the share price. Whereas specials and/or rising dividends are very obvious to the investor!

Still if it is all over in 2020 and dividends start to rise again afterwards then I do not have too much longer to wait!

FD

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Re: Shell 2nd Quarter 2019 and Half Year Unaudited Results

#241096

Postby Arborbridge » August 1st, 2019, 5:23 pm

funduffer wrote:
pyad wrote:
On the matter of dividend increases, the company said this at the "Management Day" meeting in early June:

"Shell expects to increase the dividend per share when there is line of sight to the completion of the $25 billion share buyback programme."

I presume you aware that the buybacks themselves constitute a valuable return to shareholders from which we HYPers will benefit handsomely. ;)


Thanks for pointing this out, I had forgotten there was a share buyback going on.

I am not a big fan of share buybacks, even if they theoretically offer a return to investors. They are too full of smoke and mirrors and at the end of the buyback it is often impossible to tell if there has been any real positive effect on the share price. Whereas specials and/or rising dividends are very obvious to the investor!

Still if it is all over in 2020 and dividends start to rise again afterwards then I do not have too much longer to wait!

FD


Give me the money!! Then I can decide what I want to do with it.


Arb.

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Re: Shell 2nd Quarter 2019 and Half Year Unaudited Results

#241112

Postby Dod101 » August 1st, 2019, 5:55 pm

Shell are only doing what they promised at the time of the BG buyout. They issued a large number of new shares then to help fund it and said that they would in due course buy those back again. That is what they are doing so good on them I'd say. You can look on this $25 billion buy in as paying for that takeover.

Dod


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