MOSCOW (MRC) -- Shell’s 2016 fourth-quarter earnings on a current cost of supplies (CCS) basis were at USD1 billion compared with USD1.8 billion in the same quarter of 2015, said the company on its site.
"Earnings were impacted by charges of USD0.5 billion related to deferred tax reassessments which were not included as identified items," Shell said in a statement.
Excluding these items, fourth-quarter earnings were USD1.8 billion compared with USD1.6 billion in the year before, an increase of 14 percent.
For the full-year of 2016, earnings attributable to Shell’s shareholders were USD3.5 billion compared with USD3.8 billion in 2015. Excluding identified items, full-year earnings were USD7.2 billion compared with USD11.4 billion in 2015.
These results are Shell’s fourth following the purchase of BG Group in February last year. The deal between BG and Shell created the world’s largest liquefied natural gas (LNG) company.
"We are reshaping Shell and delivered a good cash flow performance this quarter with over USD9 billion in cash flow from operations. Debt has been reduced and, for the second consecutive quarter, free cash flow more than covered our cash dividend," Ben van Beurden, chief executive officer of Shell, said.
"Production and LNG volumes included delivery from new projects, with ramp-up continuing in 2017 and 2018. Meanwhile we are operating the company at an underlying cost level that is USD10 billion lower than Shell and BG combined only 24 months ago."
"We are gaining momentum on divestments, with some USD15 billion completed in 2016, announced, or in progress, and we are on track to complete our overall USD30 billion divestment programme as planned," van Beurden said.
Looking ahead, the CEO said that Shell would further focus its portfolio and strengthen the company’s financial framework in 2017.
"Our strategy is starting to pay off and in 2017 we will be investing around $25 billion in high quality, resilient projects. I’m confident 2017 will be another year of progress for Shell to become a world-class investment," he added.
MRC