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Shell (RDS.A) Q3 Earnings Miss Estimates, Cash Flow Rises

Royal Dutch Shell's (RDS.A) operating cash flow increased 54% from the year-earlier level to $16 billion.

This story originally appeared on Zacks

An Earnings Miss: Europe’s largest oil company Royal Dutch Shell plc (RDS.A) reported earnings per ADS (on a current cost of supplies basis, excluding items — the market’s preferred measure) — of $1.06, below the Zacks Consensus Estimate of $1.41.

Estimate Revision Trend & Surprise History: The Zacks Consensus Estimate for third-quarter bottom line has been revised 2.9% upward in the last seven days.

Royal Dutch Shell beat the Zacks Consensus Estimate in three of the last four quarters and missed in the other, delivering an earnings surprise of 117.76%, on average. This is depicted in the graph below:


- Zacks

Royal Dutch Shell PLC Price and EPS Surprise

Royal Dutch Shell PLC Price and EPS Surprise

Royal Dutch Shell PLC price-eps-surprise | Royal Dutch Shell PLC Quote

Revenue Rises: Revenues of $61.6 billion improved 37.7% from the third-quarter 2020 sales of $44.7 billion.

Key Stats: Upstream segment recorded a profit of $1.7 billion (excluding items) during the quarter, turning around from a loss of $884 million (adjusted) reported in the year-ago period. Shell’s upstream volumes averaged 2,081 thousand oil-equivalent barrels per day (MBOE/d), down 5.5% from the year-ago period. At $67.10 per barrel, the group’s worldwide realized liquids prices were 73.5% above the year-earlier levels while natural gas prices soared 204.5%.

In the Oil Products segment, the Anglo-Dutch super-major reported adjusted income of $1.2 billion, 27.9% lower than the year-ago period.

The Integrated Gas unit reported adjusted income of $1.7 billion, jumping from the $768 million in July-September quarter of 2020.

Meanwhile, the Chemicals segment recorded a profit of $395 million (excluding items) during the quarter, compared to the year-ago earnings of $227 million.

The oil major’s operating cash flow increased 54% from the year-earlier level to $16 billion.

Share Buyback: Royal Dutch Shell repurchased $1 billion of shares in the third quarter.

Zacks Rank: Currently, Royal Dutch Shell carries a Zacks Rank #1 (Strong Buy).

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this Royal Dutch Shell earnings report later!


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