Profits at Anglo-Dutch oil giant Shell rose by a factor of just under 2.5 in the first quarter of 2017 compared to the same period last year.
Shell’s 2Q2017 earnings, excluding identified items, were $3.6 billion (£2.7 billion), up 245% from $1 billion in the second quarter of 2016.
Gas and oil production over the period averaged 3.5 million barrels of oil equivalent per day.
Ben van Beurden, Chief Executive, explained: “Cash generation has been resilient over four consecutive quarters, at an average oil price of just under $50-barrel.
“This quarter, we generated robust, earnings of $3.6 billion, while over the past 12 months cash flow of $38 billion has covered our cash dividend and reduced gearing to 25%.
“And we have completed, or almost-completed, over $25 billion of our $30 billion divestment target completed, making a material contributing to our debt reduction.”
However, Van Beurden also warned that Shell would continue keep a firm grip on costs and investment in exploration in the lower-for-longer $50-barrel environment.
28 July 2017