Shell’s Q1 Earnings Beat Estimates, Segmental Earnings Rose

Shell’s first-quarter earnings

Royal Dutch Shell (RDS.A) reported its first-quarter earnings on May 2. The company’s earnings beat the estimates. To learn more, read Shell’s Q1 Upstream Earnings Rose despite Tough Conditions.

Shell’s Q1 Earnings Beat Estimates, Segmental Earnings Rose

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Shell’s Upstream segment’s earnings rose from $1.6 billion in the first quarter of 2018 to $1.7 billion in the first quarter on an adjusted basis. The Upstream segment’s earnings rose due to better volumes. The higher earnings were partially offset by lower liquid realizations. The liquid realizations averaged $61 per barrel in the first quarter of 2018 and rose to $57 per barrel in the first quarter. Shell’s Integrated Gas earnings rose 5% from the first quarter of 2018 to $2.6 billion in the first quarter. The earnings rose due to higher gas and LNG realizations. The increase was partially offset by lower volumes.

In the first quarter, the Integrated Gas segment’s hydrocarbon production fell 12.4% YoY to 0.85 MMbpd (million barrels per day). The hydrocarbon volumes fell due to the impact of divestments and the transfer of Salym assets to the Upstream segment. However, the Upstream segment’s hydrocarbon production rose 1.2% YoY to 2.9 MMbpd due to higher production in the US Gulf of Mexico and Shale regions. Overall, Shell’s total hydrocarbon production fell 2.3% YoY to 3.8 MMbpd in the first quarter.

Peers’ upstream performance

ExxonMobil’s (XOM) upstream earnings fell from $3.5 billion in the first quarter of 2018 to $2.9 billion in the first quarter. BP’s (BP) upstream adjusted EBIT fell from $3.2 billion in the first quarter of 2018 to $2.9 billion in the first quarter. Chevron’s (CVX) adjusted Upstream segment’s earnings fell from $3.4 billion in the first quarter of 2018 to $3.3 billion in the first quarter. Total’s (TOT) exploration and production adjusted operating earnings fell 5% from the first quarter of 2018 to $1.7 billion in the first quarter.

Shell’s Downstream earnings

Shell’s Downstream segment’s earnings rose 3% from the first quarter of 2018 to $1.8 billion in the first quarter. The earnings rose due to stronger Refining and Trading and Marketing earnings. The increase was partially offset by weaker Chemical earnings. The Refining and Trading earnings rose due to higher trading activities. The increase was offset by lower refining margins. The Marketing earnings rose due to higher margins. However, the Chemical earnings fell due to weaker margins in base chemicals and intermediate products.