Royal Dutch Shell plc (ADR) (RDS.A) Declares Great Results, Faces Risks in Russia

Royal Dutch Shell plc (ADR) (NYSE:RDS.A) announced its second quarter results today, the company performed well in the quarter, beating analyst expectations by a good margin. The company posted second-quarter earnings of $5.1 billion on a current cost of supplies (CCS) basis on, up from $2.4 billion in the same quarter a year earlier. Royal Dutch Shell plc (ADR) (NYSE:RDS.A) also announced a second-quarter 2014 dividend of 47 cents per ordinary share.

Royal Dutch Shell plc (ADR) (NYSE:RDS-A)

Bloomberg’s Ryan Chilcote broke down the earnings of Royal Dutch Shell plc (ADR) (NYSE:RDS.A) and discussed the underlying risks that the company faces in Russia.

“[...] Profits beating $6 billion, the estimate was at around $5.5 billion, profit up by 33%, that’s why the stock is up. They are pushing ahead with the restructuring program. There has been a problem in the United States, they are sorting that problem out, they took a write down of just close to $2 billion. But, Russia is an interesting one, they didn’t say anything about Russia in their statement,” Chilcote said.

Chilcote believes that companies that do business in Russia really need to think about how they approach disclosures as most of the companies have refrained from speaking much about their business in the country while reporting their earnings and even otherwise. Royal Dutch Shell plc (ADR) (NYSE:RDS.A) has assets worth $7 billion in Russia and it works closely with Russian company Gazprom in Russia’s only LNG project. Given the kind of recent sanctions that have been imposed by the U.S. and European Union on Russia for its role in Ukraine, oil companies like Royal Dutch Shell plc (ADR) (NYSE:RDS.A) can see some repercussions due to that.

“[...] If Russia goes to the oil companies that it’s working with and starts seizing their assets, logic would dictate that they wouldn’t want to do that, because they recognize that the sanctions are politically motivated and is last thing that, say ,Exxon or Shell that they work closely with, or BP, wants are these sanctions,” Chilcote added.

Disclosure: None

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!