Search Share Prices
Shell earnings improve surge thanks to higher oil prices
(WebFG News) - Royal Dutch Shell reported a strong rise in first-quarter earnings thanks to higher crude oil prices and growth from its gas and upstream businesses.
However, while it declared another interim cash dividend of $0.47, chief executive officer Ben van Beurden said "less favourable" refining market conditions and lower contributions from trading hit earnings in the downstream business.
First-quarter earnings of $5.3bn were up 42% on the first quarter of 2017 and 24% on the fourth quarter, in line with the $5.28bn consensus forecast. Earnings were reported on a current-cost-of-supply basis excluding certain items.
Operating cash flow of $9.4bn was down 1% year-on-year but up 30% on the preceding quarter, helped by higher oil gas prices, while the balance sheet was boosted by $1.3bn of asset divestments, down from the bumper $6.5bn in the quarter before.
Total production of 3,839k barrels of oil equivalent per day was up 2% on the previous year and preceding quarter.
Average oil prices of $60.66 in the quarter were up 25% on the year and 10% on the quarter, as Brent crude prices have picked up on geopolitical concerns.
Capital investment of $5.2bn was up from $4.7bn a year ago but down from $6.8bn in the fourth quarter.
Said van Beurden: "We continue to upgrade our portfolio through performance improvement, new projects, divestments and the development of new businesses. Competitiveness and resilience - now and through the energy transition - are key features of our world-class investment case.
"We have a strong financial framework. Our commitment to capital discipline is unchanged, we are making good progress with our $30bn divestment programme and our outlook for free cash flow - which covered our cash dividend and interest this quarter and over the last year - is consistent with our intent to buy back at least $25 billion of our shares over the period 2018-2020."