Royal Dutch Shell has announced its results for the second quarter (Q2) of 2019, reporting current cost of supplies (CCS) earnings of $3.6bn, a decrease from $5.3bn in Q1 2019.
Shell attributed this decrease in profit to lower realised oil, gas and LNG prices, higher provisions and weaker realised chemicals and refining margins, offset by improved production.
The company’s offshore operations saw CCS earnings of $1.4bn, a decrease from Q1 2019 earnings of $1.7bn and Q2 2018’s of $1.5bn respectively. Shell cited lower realised oil and gas prices, increased receivables provisions and higher depreciation from field ramp-ups as reasons for this decrease.
The company’s total production available for sale in Q2 2019 was 3.6 million barrels of oil equivalent per day (MMboe/d), a decrease from $3.8 MMboe/d in Q1 2019 but an increase from $3.4bn in Q2 2018.
Shell’s revenue for Q2 2019 was $90.5bn, a decrease from $96.8bn in Q2 2018 but an increase from $83.7bn in Q1 2019. The company also saw cash flow of $11bn from operating activities in Q2 2019, an increase from $8.6bn and $9.5bn in Q1 2019 and Q2 2018 respectively.
Shell CEO Ben van Beurden said: “We have delivered good cash flow performance, despite earnings volatility, in a quarter that has seen challenging macroeconomic conditions in refining and chemicals as well as lower gas prices.
“This quarter we achieved some key milestones, such as the start-up of Appomattox and the first LNG cargo from Prelude. These add to our competitive portfolio, which is expected to generate additional cash in the coming quarters.
“The resilience of our Upstream and customer-facing businesses and their ability to generate cash support the delivery of our 2020 outlook, which remains unchanged.”
Our results for the second quarter of 2019 show the strength of strategy and portfolio. Hear from Shell CEO Ben van Beurden 📺 #ShellResults
— Shell (@Shell) August 1, 2019