Investors might have been expected to react with disappointment to first quarter results from Royal Dutch Shell (RDSB) given the slump in profit and revenue.
That they didn’t reflects partly that year-on-year declines were expected. In fact, Shell did better than had been anticipated, which explains today's 2.4% rise in the share price to £24.89.
Like its peer BP (BP.), which reported on 30 April, Shell seems to have coped well despite the oil market kicking off 2019 in a depressed state. Profit of $5.3bn was down just 2% year-on-year and compared favourably with the $4.5bn forecast.
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Strong contributions from trading and higher liquefied natural gas (LNG) and natural gas prices helped offset the impact of lower realised oil prices.
HIGHLY-PRIZED PAYOUT
No wonder chief executive Ben van Beurden felt able to point to a ‘robust’ start to the year. Shell is highly prized for its income credentials and held its quarterly dividend steady at $0.47.
Michael Kempe, chief operating officer of share registrar Link Market Services says ‘Shell is the world’s largest dividend payer, and hasn’t cut its pay-out since WW2.’
‘The latest pay-out was the 21st consecutive distribution held steady at $0.47 per share. Investors eyeing the rising oil price may have hoped for more, but the $25bn buyback programme continues apace, and will enhance shareholder returns over time.’
Commenting on the numbers in general Cantor Fitzgerald says the business is ‘still looking very healthy’.
