Royal Dutch Shell Closes Out Strong Quarter for Global Oil Firms -- 2nd Update
02 Novembre 2017 - 2:17PM
Dow Jones News
By Sarah Kent
LONDON-- Royal Dutch Shell PLC said Thursday its profits nearly
tripled in the third quarter compared with a year earlier, helped
by recovering oil prices, better conditions for its refineries and
an increase in oil-and-gas production.
The British-Dutch oil giant said its quarterly profit on a
current cost-of-supplies basis--a number similar to the net income
that U.S. oil companies report--was $3.7 billion, up from $1.4
billion a year earlier.
Shell's earnings were lifted by conditions that have boosted the
fortunes of most giant oil companies, which have regained a level
of equilibrium after years of scrambling to adapt to the sharp drop
in oil prices since 2014.
Last week, Exxon Mobil Corp and Chevron Corp. both reported
increases in third-quarter profits of about 50% compared with the
prior year. French oil major Total SA saw its earnings jump 40%. On
Tuesday, British oil giant BP PLC said it could cover its spending
and dividends with cash with oil at $49 a barrel.
Driving the results are modestly recovered oil prices and a raft
of cost cuts that Shell and others say have changed how they do
business.
The international oil price benchmark, known as Brent, averaged
around $52 a barrel in the third quarter, up since dipping below
$30 a barrel in early 2016 but much below a 2014 peak of $114 a
barrel. This week, Brent climbed above $60 a barrel for the first
time in two years.
Shell said it was able to cover its shareholder payouts with
cash at current oil prices--a newly important metric for investors
worried about the safety of their dividends in a low-oil-price
world. The company's chief executive, Ben van Beurden, has vowed
that the company's mind-set on oil prices is that they will be
"lower forever."
"We're trying to build a company that's resilient through very
low-price environments," Chief Financial Officer Jessica Uhl said
Thursday.
Shell's share price has climbed to levels not seen since before
prices crashed three years ago. It was up by nearly 1% on Thursday
morning in London, on a day when other energy shares and Brent
crude prices were down.
Strong performance in Shell's refining and chemicals division
helped underpin earnings in the third quarter. Big oil companies
have benefited from owning oil-processing plants throughout the
downturn, as these businesses buy crude and benefit from low
prices.
The company's exploration and production arm also returned to
profit in the quarter, boosted by higher prices and new production
volumes in its integrated gas unit helped raise output by 2%,
offsetting declines elsewhere and the impact of divestments. Shell
said it produced 3.7 million barrels of oil equivalent a day in the
third quarter, up roughly 100,000 barrels a day from the second
quarter.
Shell also managed to keep a lid on debt levels, which ballooned
after its $50 billion acquisition of BG Group in 2016. Net debt
fell to $67.7 billion at the end of the third quarter, compared
with $77.8 billion a year earlier, helped by a continuing asset
disposal program and steep cost-cutting.
Write to Sarah Kent at sarah.kent@wsj.com
(END) Dow Jones Newswires
November 02, 2017 09:02 ET (13:02 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
TotalEnergies (EU:TTE)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
TotalEnergies (EU:TTE)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024