Shell sticks to downgraded dividend payout for Q2 as it marks US$16bn of impairments
Shell announced a second-quarter dividend of 16 cent per share, in-line with the 65% reduction seen in the first quarter.
It comes as group reported an IFRS earnings loss of US$18.1bn, whilst adjusted earnings were marked in positive territory, at US$600mln.
The quarterly results included some US$16.8bn of impairment charges triggered by lower crude price and margin forecasting – with US$8.2bn written-off in integrated gas, US$4.7bn written-off in upstream, US$4bn in oil products, and US$5mln in corporate.
Shell described the results as ‘robust’ and noted that it was on track to deliver its cost-cutting targets. It axed US$1.1bn off the underlying OPEX bill compared to the preceding quarter, delivering on the US$3bn to US$4bn targeted for the year.
Capital spending similarly was sliced down US$1.4bn from Q1 and is being managed down to total US$20bn or less for 2020.
“Shell has delivered resilient cash flow in a remarkably challenging environment,” said chief executive Ben van Beurden.
He added: “our decisive cash preservation measures will underpin the strengthening of our balance sheet. Our high-quality integrated portfolio, disciplined execution and forward-looking strategy enable sustained competitive free cash flow generation.”