BAKU, Azerbaijan, Apr.30
By Leman Zeynalova – Trend:
First quarter earnings of Royal Shell Dutch in the upstream segment were $1,096 million, Trend reports with reference to the company.
This included a net gain of $411 million related to the sale of assets, and a charge of $232 million related to the impact of the weakening Brazilian real on a deferred tax position.
Adjusted Earnings were $963 million. Cash flow from operating activities for the quarter was $4,108 million, primarily driven by Adjusted Earnings before noncash expenses including depreciation. Compared with the fourth quarter 2020, Upstream Adjusted Earnings reflected higher realised oil prices, lower depreciation, and the absence of the unfavourable deferred tax movements which impacted the fourth quarter 2020. These were partly offset by comparative adverse currency effects.
Compared with the fourth quarter 2020, total production increased by 4%, mainly due to favourable gas seasonal effects and the impact of hurricanes in the US Gulf of Mexico in the fourth quarter 2020. Compared with the first quarter 2020, Upstream Adjusted Earnings reflected higher realised oil prices, and lower depreciation. Compared with the first quarter 2020, total production decreased by 9 percent, mainly due to the impact of higher maintenance and divestments. The impact of field declines was largely offset by growth from new fields.
First quarter 2021 income attributable to Royal Dutch Shell plc shareholders was $5.7 billion, which included net gains on sale of assets of $1.4 billion and gains of $0.4 billion due to the fair value accounting of commodity derivatives, partly offset by redundancy and restructuring charges of $0.5 billion, mainly related to the restructuring plan named Reshape.
Adjusted Earnings for the quarter were $3.2 billion. Cost of supplies adjustment attributable to Royal Dutch Shell plc shareholders for the first quarter 2021 was negative $1.3 billion. The Texas winter storm had an impact on the company’s operations and had an aggregate adverse impact of around $0.2 billion on Adjusted Earnings.
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