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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today

The 10 Most Deadly Diseases in the World Today

The 5 Most Expensive Luxury Motorhomes in the World

20 Largest Stock Exchanges in the World

6 Richest Painters In The World 2014

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!