Lees ik nu dat dividend gehandhaafd blijft bij goedkeuring BG group deal. LOL
Shell updates on fourth quarter 2015 and full year 2015 unaudited results
20-Jan-2016
As envisaged in the circular and prospectus published by Shell on 22 December 2015 relating to its recommended combination with BG Group plc, Royal Dutch Shell plc (“Shell”) today updates on its expected fourth quarter and full year 2015 results ahead of the Shell General Meeting on 27 January 2016. Fourth quarter 2015 and full year 2015 figures are expected to be published on 4 February 2016.
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When Shell announces its results on 4 February 2016, Shell’s fourth quarter 2015 earnings on a current cost of supplies (“CCS”) basis excluding identified items are expected to be in the region of $1.6 – 1.9 billion. This includes Upstream of $0.4 – 0.5 billion, of which Integrated Gas some $1.6 – 1.9 billion, and Downstream of $1.4 – 1.6 billion, of which Oil Products some $1.3 – 1.4 billion and Chemicals some $0.1 – 0.2 billion. Full year 2015 earnings on a CCS basis excluding identified items are expected to be in the region of $10.4 – 10.7 billion.
Identified items for the fourth quarter 2015 are expected to be in the range of a net charge of $0.2 billion to an immaterial gain, mainly reflecting gains on sale of assets and impairments; and for the full year 2015 are expected to be a net charge of some $6.8 – 7.0 billion.
Income attributable to Royal Dutch Shell plc shareholders is expected to be in the region of $0.6 – 1.0 billion for the fourth quarter 2015 and for the full year 2015 expected to be in the region of $1.6 – 2.0 billion.
Cash flow from operating activities for the fourth quarter 2015 is expected to be in the region of $4.8 – 6.0 billion and for the full year 2015 expected to be in the region of $29.2 – 30.4 billion.
Production for the fourth quarter 2015 was 3.0 million boe/d, and for the full year 2015 2.9 million boe/d.
Gearing is expected to be 14% at the end of 2015, including net debt of $27 billion, compared to 12.2% at the end of 2014, and 12.7% at the end of third quarter 2015.
Underscoring Shell's commitment to returns to shareholders, dividends declared for 2015 are expected to be $1.88/share or $12 billion, and for 2016 at least $1.88/share or, assuming successful completion of the combination, $15 billion in total.
Ben van Beurden
Commenting on the trading update, Royal Dutch Shell CEO Ben van Beurden said:
"I'm pleased with Shell's operating performance in 2015, and the momentum in the company to reduce costs and to improve competitiveness.
Bold, strategic moves shape our industry. The completion of the BG transaction, which we are expecting in a matter of weeks, will mark the start of a new chapter in Shell, to rejuvenate the company, and improve shareholder returns.
Shell's drive to improve competitive performance is delivering at the bottom line. Operating costs have reduced by $4 billion, or around 10% in 2015, and the company expects Shell’s costs to fall again in 2016, by a further $3 billion. Synergies from the BG combination will be in addition to that. Together, these actions will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies, as streamlining and integration of the two companies continue.
Shell is taking impactful steps to refocus and reduce capital spending. Shell's capital investment in 2015 is expected to be $29 billion, an $8 billion or over 20% reduction from 2014 levels. This has been delivered by efficiency improvements and more selectivity on new investments. Capital investment for Shell and BG combined in 2016 is currently expected to be $33 billion, around a 45% reduction from combined spending, which peaked in 2013. Flexibility for further reductions is available and will be utilised should conditions warrant that. As a result of the above actions we have retained a strong balance sheet position at around 14% gearing.
Asset sales for 2014 and 2015 now exceed $20 billion, well above the original plan of $15 billion set out in early 2014. Preparations are well advanced for $30 billion of asset sales in 2016-18, assuming the successful completion of the combination.
In addition to divestments, Shell has taken impactful decisions in 2015 to reduce longer term, low return upstream positions, such as the exit from Alaska exploration for the foreseeable future, cancellation of Carmon Creek heavy oil project, and exit from shales positions in multiple countries.”
Shell’s fourth quarter and full year 2015 results and fourth quarter 2015 dividend are scheduled to be announced on 4 February 2016. A Shell General Meeting in relation to the proposed combination is scheduled for 27 January 2016 in The Hague, The Netherlands.
The statements relating to expected “CCS earnings excluding identified items”, “Cash flow from operating activities” and “Income attributable to Royal Dutch Shell plc shareholders” represent profit estimates under the City Code on Takeovers and Mergers (the “City Code”). Please refer to the Appendix to this announcement for further detail on these estimates. These profit estimates have been reported on under the City Code by PricewaterhouseCoopers LLP, and by Shell’s financial adviser, Bank of America Merrill Lynch. Copies of their letters are included in Parts B and C of the Appendix. References in this announcement to those profit estimates should be read in conjunction with the Appendix.