Results round-up

Oil giant Royal Dutch Shell posted weaker-than-expected fourth quarter profits in part due to extraordinary charges.

Shell reported an 8% drop in full-year profits on a current cost of supplies basis to reach $3.53bn, although net income attributable to shareholders was higher by 136% to $4.6bn.

On the other hand, fourth quarter CCS earnings excluding identified items on the other hand rose 14% to $1.8bn (consensus: $2.8bn), driving a rise in earnings per share of 27% to 19 cents.

Shell explained that CCS profits ex items took a $0.5bn hit from charges linked to deferred tax reassessments.

A weaker Australian dollar led the explorer to book a $763m charge at its integrated gas business, which was partially compensated for by gains in refining that lowered the total provision to $0.5bn.

In parallel, operating cash flows for all of 2016 fell 31% to $20.62bn, although over the last three months of the year they jumped 69% to $9.17bn.

Commenting on the results, Shell chief Ben van Beurden 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 $10bn lower than Shell and BG combined only 24 months ago. We are gaining momentum on divestments, with some $15bn completed in 2016, announced, or in progress, and we are on track to complete our overall $30bn divestment programme as planned."