First Quarter Trading Update Of Royal Dutch Shell PLC

Royal Dutch Shell PLC (RDSA) is a Hague, Netherlands-based international group of energy and petrochemical company, which engages in exploring, producing, refining and marketing oil and natural gas. The group also manufactures and markets chemicals. Royal Dutch Shell PLC, which is incorporated in England and Wales, is the parent company of the Shell group. Royal Dutch Shell operations are differentiated into three operating segments: Upstream, Downstream, and Integrated Gas and New Energies, and Downstream.

In Q1 FY19, cash flow from operations excluding working capital stood at $12.1 billion, due to the strong growth in cash generation across all the business segments. Free cash flow decreased to $4 billion as compared to $5.2 billion in Q1 2018. CCS earnings (attributable to ordinary shareholders excluding identified items) decreased by 1.85 per cent to $5.3 billion, against the $5.4 billion in 1Q FY18. ROACE stood at 8.4 per cent (CCS basis excluding identified items), an increase of 1.3 per cent as compared with the 1Q 2018 of 7.1 per cent. The company’s gearing increased to 26.5 per cent. Capital investment was $6.7 billion and in 2019, the company is expecting a capital investment of $25-30 billion.

On 2nd May 2019, the Board of Royal Dutch Shell plc announced an interim dividend per A ordinary share and B ordinary share in 1Q FY2019 of US$0.47.

Share Price Performance

Daily price chart (as on May 09, 2019), before the market close. (Source: Thomson Reuters)

At the current market price (as on May 09, 9:00 AM GMT), the shares of Royal Dutch Shell Plc were quoting at GBX 2,420 and increased by 0.29% against the previous day close. During the past one year, the stock has registered a 52w high of GBX 2,811.38 and a 52w low of GBX 2,209.50 and at the current price level, shares were trading around 9.52% above the 52w low price level. From the simple moving average (SMA) standpoint, shares were trading below the 200-day simple moving average price level.

In the past one year, the stock has delivered a negative price return of 5.41%, but on a year-to-date basis, the stock was up by 4.55% respectively.

From the volume standpoint, the 5-day daily average volume traded on the London Stock Exchange was 54.56% above the 30-day average volume traded on the stock exchange.

Total outstanding market capitalisation stood at £196.65 bn, which ranks it among the large-cap stock listed on the London Stock Exchange and a constituent of FTSE 100 index as well. Dividend yield of the company stood at 6.05% which was above the dividend yield of the FTSE 100 index.

The company continuously seeks to improve its operating performance and maximise sustainable free cash flow and is on track with its outlook of annual net charge of between $650 million and $700 million in Q2 FY19. The full year net charge was around $2.6-2.8 billion in FY19, excluding the impact of currency exchange rate effects.

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