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The Hague-based Royal Dutch Shell plc (RDS-A – Analyst Report) 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 fourth quarter 2015 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.

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

Earnings: Shell misses 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 57 cents, below the Zacks Consensus Estimate of 60 cents.

Revenue: Revenues above expectations. Revenues of $58,146 million were handily above the Zacks Consensus Estimate of $27,259 million.

Key Stats: Upstream segment recorded a profit of $493 million (excluding items) during the quarter, down significantly from $1,730 million (adjusted) in the year-ago period. Shell’s upstream volumes averaged 3,039 thousand oil-equivalent barrels per day (MBOE/d), 5% lower than the year-ago period. The company’s worldwide realized liquids prices were 46% below their year-earlier levels and natural gas realizations fell 33% from the fourth quarter of 2014. In the Downstream segment, the Anglo-Dutch super-major reported adjusted income of $1,524 million, 2% less than the $1,550 million earned in the year-ago period.

 

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