20th Jan 2016 07:22
LONDON (Alliance News) - Royal Dutch Shell PLC on Wednesday said its earnings plummeted in 2015 as a result of lower oil prices, but the oil and gas major sought to alleviate concerns over the future of its dividend.
Shell said full-year current cost of supply earnings excluding items is expected to be in the region of USD10.40 billion to USD10.70 billion, little more than half the USD19.04 billion in 2014, whilst income attributable to shareholders will be around USD1.60 billion to USD2.00 billion, also a fraction of the USD14.87 billion a year ago.
Shell said its 2015 dividend will be USD1.88 per share, and said its dividend in 2016 will be at least that amount. The 2015 dividend is flat from 2014.
The net charge on identified items for 2015 is expected to be in the range of USD6.80 billion to USD7.00 billion.
Cashflow from operating activities in 2015 is expected to be in the region of USD29.20 billion to USD30.40 billion, as production stayed on track, averaging 2.9 million barrels of oil equivalent per day.
Gearing at the end of 2015 is expected to be around 14%, including net debt of USD27.00 billion, compared to 12.2% at the end of 2014 and 12.7% at the end of the third quarter of 2015.
"I'm pleased with Shell's operating performance in 2015, and the momentum in the company to reduce costs and to improve competitiveness," said Chief Executive Ben van Beurden.
"Bold, strategic moves shape our industry. The completion of the BG transaction, which we are expecting in a matter of weeks, will mark the start of a new chapter in Shell, to rejuvenate the company, and improve shareholder returns," he added.
BG Group PLC also announced results for 2015 Wednesday morning, ahead of shareholder votes on the proposed merger between the two companies later this month.
By Joshua Warner; [email protected]; @JoshAlliance
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