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ROYAL DUTCH SHELL PLC FOURTH QUARTER 2020 PRESS RELEASE

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Royal Dutch Shell announced strong operational delivery amidst the challenges of 2020, citing a reduction in net debt by $4 billion to $75 billion. They successfully exceeded cash preservation targets with cash capex cut to $18 billion, down from $24 billion in 2019. The company anticipates an increase in the dividend for Q1 2021 by approximately 4% to US$0.1735 per share. Financial metrics show IFRS earnings of $(4,014) million and adjusted earnings of $393 million for Q4 2020.

Positive
  • Net debt reduced by $4 billion to $75 billion.
  • Cash capex reduced to $18 billion in 2020, exceeding targets.
  • Q1 2021 interim dividend expected to increase by ~4%.
Negative
  • Q4 2020 IFRS earnings at $(4,014) million.

The Hague, February 4, 2021

“2020 was an extraordinary year. We have taken tough but decisive actions and demonstrated highly resilient operational delivery while caring for our people, customers and communities. We are coming out of 2020 with a stronger balance sheet, ready to accelerate our strategy and make the future of energy. We are committed to our progressive dividend policy and expect to grow our US dollar dividend per share by around 4% as of the first quarter 2021.” Royal Dutch Shell Chief Executive Officer, Ben van Beurden

STRONG OPERATIONAL DELIVERY IN AN EXTRAORDINARY YEAR

  • Resilient financial results, with sector-leading cash generation. Net debt reduced by $4 billion to $75 billion during 2020.
  • Exceeded cash preservation targets set in March 2020:
    • Cash capex decisively reduced to $18 billion in 2020, from $24 billion in 2019, against a target of $20 billion or lower. 
    • Underlying opex of $33 billion in 2020, down by $4 billion, from $37 billion in 2019, against a reduction target of $3 to $4 billion.
  • The Board expects that the first quarter 2021 interim dividend will be US$0.1735 per share, an increase of ~4% over the US dollar dividend for the fourth quarter 2020.
$ million IFRS earnings1 Adjusted Earnings CFFO CFFO ex WC Cash capex Organic FCF
Integrated Gas 20 1,109 2,203 2,195 1,664 416
Upstream (2,091) (748) 2,010 2,890 1,654 513
Oil Products (1,775) 540 1,198 782 1,310 (53)
Refining & Trading (2,722) (287)        
Marketing 947 828        
Chemicals 367 381 774 775 830 (57)
Corporate (954) (836) 102 (17) 46 52
Less: Non-controlling interest (44) (54)        
RDS Q4 2020 (4,014) 393 6,287 6,624 5,503 871
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FAQ

What financial improvements did Royal Dutch Shell report for 2020?

Royal Dutch Shell reported a $4 billion reduction in net debt and a successful decrease in cash capex to $18 billion.

What is the expected dividend per share for Shell in Q1 2021?

The expected interim dividend for Q1 2021 is US$0.1735 per share, reflecting a ~4% increase.

What were Shell's IFRS earnings for Q4 2020?

Shell reported IFRS earnings of $(4,014) million for Q4 2020.

How did Shell perform in cash preservation during 2020?

Shell exceeded its cash preservation targets, reducing underlying opex by $4 billion from 2019.

What was the cash capex for Royal Dutch Shell compared to previous years?

Shell's cash capex fell to $18 billion in 2020 from $24 billion in 2019.

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