BAKU, Azerbaijan, Apr.30
By Leman Zeynalova – Trend:
Integrated Gas production of Royal Dutch Shell is expected to be approximately 880 - 940 thousand boe/d in Q2 2021, Trend reports citing the company.
LNG liquefaction volumes are expected to be approximately 7.6 - 8.2 million tonnes. Upstream production is expected to be approximately 2,150 - 2,350 thousand boe/d, reflecting lower seasonal gas demand and divestment impacts. Refinery utilization is expected to be approximately 73 percent – 81 percent.
Oil products sales volumes are expected to be approximately 4,000 - 5,000 thousand b/d. Chemicals manufacturing plant utilisation is expected to be approximately 76 – 84 percent. Chemicals sales volumes are expected to be approximately 3,500 - 3,800 thousand tonnes. Corporate Adjusted Earnings are expected to be a net expense of approximately $600 - $700 million in the second quarter 2021 and a net expense of approximately $2,400 - $2,800 million for the full year 2021. This excludes the impact of currency exchange rate effects.
First quarter 2021 income attributable to Royal Dutch Shell plc shareholders was $5.7 billion, which included net gains on sale of assets of $1.4 billion and gains of $0.4 billion due to the fair value accounting of commodity derivatives, partly offset by redundancy and restructuring charges of $0.5 billion, mainly related to the restructuring plan named Reshape. Adjusted Earnings for the quarter were $3.2 billion. Cost of supplies adjustment attributable to Royal Dutch Shell plc shareholders for the first quarter 2021 was negative $1.3 billion. The Texas winter storm had an impact on our operations and had an aggregate adverse impact of around $0.2 billion on Adjusted Earnings. Cash flow from operating activities for the first quarter 2021 was $8.3 billion, which included negative working capital movements of $4.4 billion. Cash flow from investing activities for the quarter was an outflow of $0.6 billion, driven mainly by capital expenditure and partly offset by proceeds from sale of property, plant and equipment and businesses. Compared with the fourth quarter 2020, current quarter Adjusted Earnings reflected higher realized oil and LNG prices, chemicals and refining margins, Oil Products trading contributions and lower depreciation.
Compared with the first quarter 2020, current quarter Adjusted Earnings reflected higher realized oil prices and chemicals margins partly offset by lower realized refining and marketing margins. At the end of the first quarter 2021, net debt was $71.3 billion, compared with $75.4 billion at the end of the fourth quarter 2020, mainly driven by free cash flow generation in the quarter. Gearing was 29.9 percent at the end of the first quarter 2021, compared with 32.2 percent at the end of the fourth quarter 2020, mainly driven by net debt reduction, earnings and remeasurements of pensions.
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