Shell enhances quarterly disclosures
Shell has on Monday 30th September, 2019, introduced the publication of a quarterly update, starting with the third quarter 2019.
The company said it will additionally publish the quarterly consensus collected for cash flow from operations (CFFO).
Jessica Uhl, CFO of Royal Dutch Shell said: “In response to feedback from our investor community we are introducing this new quarterly process.
“This is a further step in Shell’s ongoing journey to enhance disclosures and increase transparency”.
- Production is expected to be between 930 and 960 thousand barrels of oil equivalent per day
- LNG liquefaction volumes are expected to be between 9.00 and 9.30 million tonnes
- For the third quarter, we expect to deliver strong trading and optimisation performance
- Note that more than 80% of our term contracts for LNG sales in 2018 were oil price linked with a price-lag of typically 3-6 months, as per previous disclosures
- Note that, as in previous quarters, CFFO in Integrated Gas can be impacted by margining resulting from movements in the forward commodity curves
- Production is expected to be between 2,600 and 2,650 thousand barrels of oil equivalent per day
- During the third quarter there have been additional well write-offs in the range of $250-$350 million compared to Q3 2018, for which no cash impact is expected
- Natural Gas Liquids and gas prices continue to be disconnected from Brent compared to Q3 2018
- In July, we completed the divestment of the Caesar-Tonga asset and our Upstream interests in Denmark
- Refinery availability is expected to be between 90% and 92%
- Oil Products sales volumes are expected to be between 6,700 and 7,350 thousand barrels per day
- Chemicals manufacturing plant availability is expected to be between 90% and 92%
- Chemicals sales volumes are expected to be between 3,900 and 4,000 thousand tonnes
- We expect chemicals cracker and intermediate margins to be materially unchanged from Q2 2019
- In September, we completed the divestment of our interest in the SASREF refining joint venture
- Corporate earnings excluding identified items are expected to be a net charge between $700 – 850 million, this excludes the impact of currency exchange rate effects
- Currency exchange rate movements, including a weakening of the Brazilian Real, is expected to have a negative earnings impact on top of the provided range
- As per previous disclosures, price sensitivity at Shell group level is $6 billion per annum per $10 per barrel Brent price movement
- Note that this price sensitivity is appropriate for smaller price changes, and is best used for full-year numbers