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Royal Dutch Shell (RDS.A) Beats Q1 Earnings Despite Oil Woes

The Hague-based Royal Dutch Shell plc RDS.A owns one of the largest integrated oil and gas businesses in the world. The group has operations all over the world and is involved in various activities related to oil and natural gas, chemicals, power generation, renewable energy resources, and other energy related businesses. Royal Dutch Shell divides its operations into three major segments: Upstream, Downstream, and Corporate.

Currently, Royal Dutch Shell has a Zacks Rank #5 (Strong Sell) but that could change following its first quarter 2016 earnings report which has just released. Coming to earnings surprise history, the company has a mixed track record: its beaten estimates in 2 of the last four quarters at an average rate of 9.16%.

We have highlighted some of the key details from the just-released announcement below:

Earnings: Shell beats on earnings. Earnings per ADR (on a current cost of supplies basis) – excluding one-time items and gains or losses from inventories came in at 43 cents, above the Zacks Consensus Estimate of 26 cents.

Revenue: Revenues below expectations. Revenues of $48,554 million were below the Zacks Consensus Estimate of $53,165 million.

Key Stats: Upstream segment recorded a loss of $1,437 million (excluding items) during the quarter, significantly wider than the $195 million (adjusted) loss in the year-ago period. Shell’s upstream volumes averaged 2,828 thousand oil-equivalent barrels per day (MBOE/d), 11% higher than the year-ago period. The company’s worldwide realized liquids and natural gas prices were 36% below their respective year-earlier levels.

In the Downstream segment, the Anglo-Dutch super-major reported adjusted income of $2,010 million, 24% less than the $2,646 million earned in the year-ago period.

The Integrated Gas unit reported adjusted income of $994 million as against $1,491 million in Jan-Mar quarter of 2015.

Check back later for our full write up on this Royal Dutch Shell earnings report later!

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