The Netherlands: Shell Sells 5.17 Million Tonnes of LNG in Q1

Royal Dutch Shell said today its first quarter 2012 earnings were $7.7 billion compared with $6.9 billion in the same quarter a year ago.

Key features of the FIRST quarter 2012

• First quarter 2012 earnings, on a current cost of supplies (CCS ) basis, were $7,659 million, 11% higher than in the same quarter a year ago.
• First quarter 2012 CCS earnings excluding identified items were $7,279 million compared with $6,288 million in the first quarter 2011.
• Basic CCS earnings per share increased by 10% versus the same quarter a year ago.
• Basic CCS earnings per share excluding identified items increased by 15% versus the same quarter a year ago.
• Cash flow from operating activities for the first quarter 2012 was $13.4 billion, compared with $8.6 billion in the same quarter last year. Excluding net working capital movements, cash flow from operating activities in the first quarter 2012 was $12.7 billion, compared with $13.1 billion in the same quarter last year.
• Net capital investment for the first quarter 2012 was $4.6 billion. Capital investment for the first quarter 2012 was $7.0 billion and proceeds from divestments were $2.4 billion.
• Total dividends distributed in the first quarter 2012 were $2.7 billion of which $1.0 billion were settled by issuing some 27.5 million Class A shares under the Scrip Dividend Programme for the fourth quarter 2011.
• Return on average capital employed at the end of the first quarter 2012 on a reported income basis was 15.4%.
• Gearing was 9.9% at the end of the first quarter 2012 versus 14.0% at the end of the first quarter 2011.
• Oil and gas production for the first quarter 2012 was 3,552 thousand boe/d. Excluding the impact of divestments, exits and PSC price effects, first quarter 2012 production was 4% higher than in the same period last year.
• LNG sales volumes of 5.17 million tonnes in the first quarter 2012 were 17% higher than in the same quarter a year ago.
• Oil products sales volumes were 3% lower than in the first quarter 2011. Chemicals product sales volumes in the first quarter 2012 decreased by 7% compared with the same quarter a year ago.

Royal Dutch Shell Chief Executive Officer Peter Voser commented:

“We are making good progress against our targets to deliver a more competitive performance. Our profits pay for Shell’s dividends and substantial investments in new energy projects, to ensure affordable, reliable energy supplies for our customers, which create value for our shareholders.

Shell’s first quarter 2012 earnings increased from year-ago levels, through a combination of improved operating performance, increased upstream volumes and strong oil prices. Energy demand fundamentals are robust, but with near-term volatility in energy prices as a result of economic and political events. In downstream and North American natural gas we see continued challenges for our industry.”

“We are implementing our strategy by improving near-term performance, delivering a new wave of production growth and maturing the next generation of growth options for shareholders. Shell sold $2.4 billion of upstream and downstream positions during the quarter, enhancing our financial flexibility and capital efficiency, and unlocking new growth potential. Asset sales for 2012 are likely to be over $4 billion, compared with our earlier guidance of $2-3 billion.”

“During the quarter, production commenced at the Caesar/Tonga project in the Gulf of Mexico and the Pluto LNG project in Australia reached ready-for-start-up status. These two non-operated positions are expected to add a total of some 40 thousand barrels of oil equivalent per day (“boe/d”) at peak for Shell and 0.9 million tonnes per annum (“mtpa”) of LNG capacity. The ramp-up of Shell’s flagship Pearl GTL project in Qatar continued during the quarter, and the project is on track to reach full capacity in the middle of 2012. In the last few weeks, crude oil processing commenced at the Port Arthur refinery expansion project, creating one of the largest refineries in the United States.”

“This is all part of a portfolio of 26 projects that Shell is developing worldwide today,” Voser continued. “This industry-leading project line-up, combined with a focus on innovation and competitive performance across the company, will drive Shell to the clear targets we have set out for shareholders, namely around $175-200 billion of cash flow from operations in total for 2012-15, and a production potential of some 4 million boe/d in 2017-18.”

Voser added: “We continue to mature new investment options for medium-term growth, including new exploration acreage and positive results from the on-going appraisal of the Appomattox oil discovery in the Gulf of Mexico, where we see scope for some 500 million boe of resources with further upside potential. I am also very pleased to welcome new strategic partners into Shell’s Prelude Floating LNG project in Australia, as we continue to develop new international natural gas resources and markets.”

“The resumption of measured, affordable dividend growth we have confirmed today reflects the improving financial position of the company and delivery of our strategy,” concluded Voser.

[mappress]
LNG World News Staff, April 26, 2012