Shell says Q1 oil and gas production rises 16 pct

May 4, 2016

* First quarter 2016 unaudited results

* Cash flow from operating activities for Q1 2016 was $0.7 billion, which included negative working capital movements of $3.9 billion

* Total dividends distributed to shareholders in quarter were $3.7 billion, of which $1.5 billion were settled by issuing 65.7 million a shares under scrip dividend programme

* Gearing at end of Q1 2016 was 26.1% versus 12.4% at end of q1 2015

* Q1 2016 basic CCS earnings per share excluding identified items decreased by 63% versus Q1 2015.

* Consolidation of bg resulted in an increase to Q1 2016 cash flow from operating activities of $0.8 billion and an increase to CCS earnings attributable to shareholders excluding identified items of $0.2 billion.

* Upstream earnings included a net gain of $87 million

* Downstream earnings included a net charge of $310 million

* Downstream earnings for Q1 2015 included a net charge of $132 million

* Oil and gas production for Q1 2016 was 3,661 thousand boe/d, an increase of 16% compared with Q1 2015

* Earnings for Q1 2015 included a net charge of $88 million

* LNG sales volumes of 12.29 million tonnes for Q1 2016 were 25% higher than for same quarter a year ago, mainly reflecting impact of acquisition of BG.

* Oil products sales volumes for Q1 2016 were 1% lower than for q1 2015.

* Chemicals sales volumes for Q1 2016 decreased by 3% compared with same quarter a year ago.

* Expected divestment tax payments related to 2015 divestments of some $830 million in Q2 2016 impacting cash flow from operating activities

* Expected to be substantial redundancy and restructuring charges, which will be included as identified items, in Q2 2016

* Q1 2016 CCS earnings attributable to shareholders (see note 3) were $0.8 billion compared with $4.8 billion for same quarter a year ago.

* Q1 2016 ccs earnings attributable to shareholders excluding identified items (see page 6) were $1.6 billion compared with $3.7 billion for Q1 2015, a decrease of 58%.

* A Q1 2016 dividend has been announced of $0.47 per ordinary share and $0.94 per American Depositary Share (“ADS”)

* Cash flow from operating activities for Q1 2016 was $0.7

* Q1 ccs earnings excluding items seen at $1.04 billion – company compiled analyst estimates

* Goodwill of $9,024 million was recognised on acquisition, being excess of purchase consideration over fair value of net assets acquired

* Upstream earnings for Q1 2015 included a net gain of $1,595 million

* Capital investment in 2016 is clearly trending toward $30 billion, compared to previous guidance of $33 billio

* Corporate results and non-controlling interest included a net charge of $427 million

* CEO says capital investment in 2016 is clearly trending toward $30 billion, compared to previous guidance of $33 billion

* Integrated gas earnings are expected to be negatively impacted by a reduction of some 30 thousand boe/d associated with impact of maintenance

* Upstream earnings are expected to be negatively impacted by a reduction of some 25 thousand boe/d related to a malaysia psc expiry, and some 10 thousand boe/d as a result of divestments.

* Upstream earnings are expected to be positively impacted by lower levels of curtailment and underground storage utilisation at NAM in Netherlands, and maintenance of some 60 thousand boe/d.

* Refinery availability is expected to decline in Q2 2016 as a result of higher planned maintenance compared with same period a year ago

* Q2 earnings are expected to be negatively impacted by price-lag effect in our LNG contracts. Source text for Eikon: Further company coverage:

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