Oil giant Royal Dutch Shell has posted a 6.5 per cent rise in third quarter net profits on the back of higher oil and gas prices.
Net profits rose to $3.46 billion, up from $3.25 billion a year earlier. Group revenues were $90.71 billion, compared with $75.01 billion the previous year.
Due to new field start-ups, total oil and gas production rose by five per cent to 3.058 million barrels of oil equivalent per day, beating analysts’ expectations of a 3.4 per cent rise.
Shell, which is Europe's largest oil company by market value, said the current cost of supply (CCS) net income was $3.52 billion during the period.
Shell has been helped by a 12 per cent rise in crude prices compared to the same period last year, while US natural gas prices were 29 per cent higher and UK gas prices doubled. Average global refining margins were also higher.
Commenting on the results, Shell’s chief executive officer Peter Voser said:“Our results have rebounded substantially from year-ago levels, driven by some improvement in industry conditions, and Shell’s strategy. We are seeing new growth, with improved earnings and cash flow, underpinned by a five per cent increase in oil and gas production, a 22 per cent increase in LNG sales and increased downstream volumes. This is a better performance from Shell, achieved despite continued difficult industry conditions in refining and natural gas markets.”
He continued: “We are making good progress on implementing our strategy, with a focus on performance improvement, delivering a new wave of growth, and maturing the next generation of growth options for shareholders, with achievements in all of these themes during the quarter.
“We are making good progress against our targets, and there is more to come from Shell,” he concluded.
Headquartered in The Hague, The Netherlands, Shell operates in 90countries and employs approximately 101,000 people. The company produces around two per cent of the world’s oil and three per cent of the world’s gas.
