Royal Dutch Shell releases earnings per American Depositary Share of of 6 cents for the second quarter of 2016. This is down from the $1.06 the company reported during the same time last year. It also failed to meet analysts’ estimate of 53 cents for the quarter.
Revenue reported by Royal Dutch Shell in the second quarter of 2016 came to $58.42 million. The oil company headquartered in The Hague, Netherlands reported $72.40 million in revenue for its second quarter of 2015. Wall Street was expecting the company to report revenue of $65.46 million this quarter.
Royal Dutch Shell said that low oil prices hurt it during the second quarter of 2016. The Downstream and Integrated Gas businesses were strong, but Upstream didn’t perform as well. However, it noted that it still plans to reach a $40 billion underlying operating cost run rate for the current year.
“We are managing the company through the down-cycle by reducing costs, by delivering on lower and more predictable investment levels, executing our asset sales plans and starting up profitable new projects,” Ben van Beurden, the CEO of Royal Dutch Shell, said in a statement. “At the same time, integration of Shell and BG is making strong progress, and our operating performance continues to further improve.”
Royal Dutch Shell said that it expects Integrated Gas and Upstream earnings to be down in the third quarter of 2016 when compared to the year prior. It’s also expecting sales volume to decrease by 200 thousand barrels per day when compared to the third quarter of 2015 due to divestments in Denmark, Norway and France.
Royal Dutch Shell also announced a quarterly dividend in its earnings report for the second quarter of the year. The divined is 47 cents per share and 94 cents per American Depositary Share. The dividend will be payable on Sept. 19, 2016 to shareholders on record as of Aug. 12, 2016.
RDS.A and RDS.B shares were down 3% as of Thursday morning.
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