Quarter Financial Highlights - Shell 3Q Highlights

Source: www.gulfoilandgas.com 10/26/2006, Location: Europe

Key features of the third quarter 2006
  • Exploration & Production segment earnings were $3,743 million compared with $4,977 million a year ago. The third quarter 2005 included a gain of $1,699 million related to the divestment of pipeline assets held through Gasunie NV in the Netherlands. Earnings reflected higher production volumes and stronger oil and gas prices, partly offset by higher costs versus a year ago.

  • Third quarter 2006 production was 3,251 thousand barrels of oil equivalent (boe) per day. Excluding the impact of hurricane damage in the Gulf of Mexico, security issues in Nigeria, and Production Sharing Contract (PSC) impacts from increased oil and gas prices, production increased by around 3% versus a year ago.

  • Gas & Power segment earnings were $787 million, compared to $556 million in the same quarter last year. Earnings reflected substantially higher liquefied natural gas (LNG) volumes and continued strong marketing and trading earnings. LNG sales volumes increased by 19% compared to the same quarter last year.

  • In Oil Products CCS earnings were $2,160 million compared to $1,726 million in the third quarter of 2005. CCS earnings reflected stronger marketing earnings, higher trading profits and improved refinery utilisation rates partly offset by lower refining margins. Chemicals CCS earnings were $335 million compared to $140 million for the third quarter of 2005, which included net charges of $184 million related to divested assets and various provisions. Operations in Chemicals reflected the start of a heavy planned maintenance programme, which is scheduled to extend into the fourth quarter 2006.

  • Gearing (see note 6) was 13.4% at the end of the third quarter 2006 versus, on a comparable Royal Dutch Shell basis, 9.7% at the end of the third quarter 2005. Total cash returned to shareholders in the quarter was $4.9 billion in the form of dividends and share repurchases.

  • Third quarter 2006 cash flow from operating activities was $10.1 billion compared to $6.6 billion a year ago. Excluding working capital movements and taxation effects, cash flow from operating activities was $9.6 billion compared to $10.5 billion a year ago.

  • Capital investment for the third quarter 2006 was $5.5 billion, excluding the minority share of Sakhalin of $0.6 billion.

  • Capital investment for the first nine months of 2006 was $16.0 billion excluding the minority share of Sakhalin of $1.4 billion. That investment includes $3.0 billion of acquisitions mainly related to the acquisition of BlackRock Ventures Inc. in Canada by Shell Canada in the second quarter 2006. Some $1.1 billion of proceeds were realised from divestments year to date, predominantly in Downstream. The industry continues to face significant cost pressures.

  • Royal Dutch Shell plc has announced that it has approached the Board of Directors of Shell Canada Limited to indicate its intention to offer to acquire the minority interests in Shell Canada Limited (Toronto Stock Exchange, ticker symbol SHC), for a cash price of C$40 per share. This proposal would value Shell Canada Limitedís fully diluted minority share capital at approximately C$7.7 billion. The Group owns a 78% stake in Shell Canada Limited.


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    Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

    Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


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