THE HAGUE (dpa-AFX) - Royal Dutch Shell plc (RDS-B, RDSB.L, RDSA.L, RDS-A) reported income attributable to shareholders of $0.5 billion for the third quarter 2020, compared to $5.88 billion, prior year. Earnings per share was $0.06 compared to $0.73. This reflected lower realised prices for oil and LNG as well as lower realised refining margins and production volumes compared with the third quarter 2019. Income to shareholders also included an impairment charge of $1.1 billion, partly offset by gains on fair value accounting of commodity derivatives of $0.5 billion. Adjusted earnings were $1.0 billion compared to $4.77 billion, reflecting lower realised prices for oil and LNG as well as lower realised refining margins and production volumes compared with the third quarter 2019. On a current cost of supplies or CCS basis, earnings to shareholders was $177 million compared to $6.08 billion, a year ago.
Third quarter revenue declined year-on-year to $44.02 billion from $86.59 billion. Total revenue and other income was $44.72 billion compared to $89.54 billion.
Shell also announced a cash allocation framework that will enable it to reduce debt, increase distributions to shareholders, and allow for disciplined growth. The cash allocation framework includes: a target to reduce net debt to $65 billion (from $73.5 billion as of September 30, 2020), and on achieving this milestone, a target to distribute a total of 20-30% of cash flow from operations to shareholders.
The Board has decided to increase the dividend per share to 16.65 US cents for the third quarter 2020.
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