Shell Announce fourth quarter 2020 Result and interim dividend
Royal Dutch Shell plc released its fourth quarter results and fourth interim dividend announcement for 2020.
Income attributable to Royal Dutch Shell plc shareholders amounted to a loss of $4.0 billion for the fourth quarter 2020, which included post-tax impairment charges of $2.7 billion and charges of $1.1 billion mainly due to onerous contract provisions. Fourth quarter 2020 results reflected lower realised prices for oil and LNG as well as lower production volumes and realised refining margins compared with the fourth quarter 2019. This was partly offset by lower operating expenses and higher chemicals margins.
Cost of supplies adjustment attributable to Royal Dutch Shell plc shareholders for the fourth quarter 2020 was negative $0.5 billion.
Adjusted Earnings were $0.4 billion for the fourth quarter 2020, reflecting lower realised prices for oil and LNG as well as lower production volumes and realised refining margins compared with the fourth quarter 2019. This was partly offset by lower operating expenses and higher chemicals margins.
Cash flow from operating activities for the fourth quarter 2020 was $6.3 billion, which included cash outflows from commodity derivatives of $0.9 billion and negative working capital movements of $0.3 billion. Cash flow from investing activities for the quarter was an outflow of $5.4 billion, driven mainly by capital expenditure.
Net debt was $75.4 billion at the end of the fourth quarter 2020, compared with $73.5 billion at the end of the third quarter 2020, mainly driven by lower free cash flow generation and by lease additions, partly offset by favourable foreign currency exchange translation differences.
Gearing was 32.2% at the end of the fourth quarter 2020, compared with 31.4% at the end of the third quarter 2020, mainly driven by increased net debt and reduced earnings, partly offset by favourable foreign currency exchange translation differences and a reduction in pensions deficit.
Total dividends distributed to Royal Dutch Shell plc shareholders in the quarter were $1.3 billion. The Board expects that the first quarter 2021 interim dividend will be US$0.1735 per share, an increase of ~4% over the US dollar dividend for the fourth quarter 2020.
“2020 was an extraordinary year. We have taken tough but decisive actions and demonstrated highly resilient operational delivery while caring for our people, customers and communities. We are coming out of 2020 with a stronger balance sheet, ready to accelerate our strategy and make the future of energy. We are committed to our progressive dividend policy and expect to grow our US dollar dividend per share by around 4% as of the first quarter 2021.” Royal Dutch Shell Chief Executive Officer, Ben van Beurden
Royal Dutch Shell plc fourth quarter 2020 interim dividend
The Board of Royal Dutch Shell plc (“RDS” or the “Company”) today announced an interim dividend in respect of the fourth quarter of 2020 of US$ 0.1665 per A ordinary share (“A Share”) and B ordinary share (“B Share”).
The Board expects that the first quarter 2021 interim dividend will be set at US$ 0.1735 per share, an increase of around 4% over the US dollar dividend for the fourth quarter 2020. The first quarter 2021 interim dividend is scheduled to be announced on April 29, 2021.
Shell has introduced option to receive dividend in US dollars and moved to full electronic settlement of its dividends
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