• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 9 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 17 hours "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 3 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 3 days What China is Learning from Russia's War in Ukraine and its Consequences
  • 2 hours Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 5 days Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65

Shell To Sell Another $5B In Assets, Misses Profit Expectations

Royal Dutch Shell (NYSE:RDS.A) is making “significant progress” on selling another US$5 billion worth of assets, chief financial officer Simon Henry said on Thursday after the oil supermajor reported 2016 profits below analyst expectations.

Shell’s current cost of supplies (CCS) – a key measure comparable with net income – came in at US$1.8 billion, excluding identified items, compared with US$1.6 billion for the fourth quarter 2015, the company said today. Full-year 2016 CCS earnings attributable to shareholders excluding identified items dropped to US$7.2 billion from US$11.4 billion in 2015.

The fourth-quarter profit fell short of analyst estimates by around US$1 billion, according to Bloomberg.

Shell was the third oil major in as many profit releases this earnings season so far that have missed analyst expectations, following Chevron and Exxon.

Shell, however, had two brighter points in its earnings report: lowered debt and increased cash flow. The company cut its net debt to US$73.346 billion at end-December from US$77.845 billion as of end-September 2016. Gearing – net debt as percentage of total capital – also dropped, to 28 percent from 29.2 percent at end-September 2016.

“Debt has been reduced and, for the second consecutive quarter, free cash flow more than covered our cash dividend,” CEO Ben van Beurden said in the company statement.

Related: The Oil War Is Only Just Getting Started

Speaking to Bloomberg, the manager said that there is a US$5-billion divestment “almost announced”.

Just two days ago, Shell announced it had agreed to sell a package of UK North Sea assets to Chrysaor for a total of up to US$3.8 billion and a stake in a field offshore Thailand for US$900 million.

In Shell’s earnings release, van Beurden said:

“We are gaining momentum on divestments, with some $15 billion completed in 2016, announced, or in progress, and we are on track to complete our overall $30 billion divestment program as planned.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News