Shell share price: what to expect from its Q1 results

After delivering a strong 2018, the oil and gas major is looking hoping that a disciplined approach to capital investment it can growth its cash flow and returns in 2019, with investors excited for its Q1 update in May.

When is Shell’s results date?

Royal Dutch Shell will release its Q1 results and its interim dividend on May 2.

Shell results preview: what does the City expect?

Compared with the first quarter 2018, integrated gas production is expected to decrease in Q1 this year by some 140,000 – 170,000 boe/d due to divestments, the transfer of some activities into the upstream segment as of 2019 and higher maintenance activities.

Meanwhile, LNG liquefaction volumes are expected to be 0.4 – 0.7 million tonnes lower, due primarily to divestments and higher maintenance activities impacted output.

Compared with the same period last year, Shell’s upstream output is expected to be 10,000 – 50,000 boe/d lower, again because of divestments which has led to field decline. However, the decrease in production has been partly offset by ramp-ups of existing fields.

Shell’s refinery availability is expected to decrease in the first quarter 2019 compared with the same period a year earlier because of higher maintenance activity.

Oil products sales volumes are expected to be 40,000 – 70,000 boe/d lower compared with the same period a year earlier, due to its sale of its downstream business in Argentina to Raizen in October last year. The sale is part of a wider strategy by Shell to simplify its portfolio through a $30 billion divestment programme.

Corporate earnings excluding identified items are expected to be a net charge of $400 – 450 million in the first quarter 2019 and a net charge of $1.7– 1.9 billion for the full year 2019. This excludes the impact of currency exchange rate effects and the impact of IFRS 16 Leases.

Shell strikes deep-water oil discovery in Gulf of Mexico

The oil and gas major saw its share price edge higher on Thursday, after the company announced that its subsidiary Shell Offshore made a significant discovery at its deep-water Blacktip prospect in the Gulf of Mexico.

‘Blacktip is Shell’s second material discovery in the Perdido Corridor and is part of a continuing exploration strategy to add competitive deep-water options to extend our heartlands,’ said Andy Brown, upstream director for Royal Dutch Shell.

Over the last decade Shell has added a little over one billion boe in the Gulf of Mexico alone, with this latest discovery another testament to the success of the company’s global deep-water strategy, which is firmly on track to exceed 900,000 boe a day by 2020.

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