Business

Oil prices boosts the result of Shell

LONDON (Reuters) – On Thursday Royal Dutch Shell reported 11% increase in its quarterly profit, surpassing analysts’ consensus, due to higher oil prices and development of new projects.

Both have more than offset lower gas prices in the United States.

The first European oil company by market capitalization reported a net current cost (SAC) of 7.66 billion dollars (5.8 billion euros).

Excluding items, the result is 7.27 billion, while analysts expected 6.70 billion.

The action gained 3.2% in London Stock Exchange, while the European sector index by 1.5% advance.

The CCS method ignores the more or unrealized losses related to the change in value of inventories. Therefore, the net result is comparable to that measured following U.S. accounting standards.

Analysts at Citigroup estimate that the market projections for future results of Shell will probably noted in the light of those published on Thursday.

Shell raised its target for asset sales to four billion dollars against 2-3000000000 before aligning with the new habits of a sector in which companies try to adjust their portfolios more frequently.

By getting rid of assets mature earlier in their life cycle, the oil hoping to focus their resources on activities with higher growth.

Some analysts believe, however, that Shell will struggle to achieve in the future returns on investments and losses on certain projects of the past.

Production for the quarter increased modestly by 1.4% over the comparable period of 2011 to 3.55 million barrels of oil equivalent, the development of new projects was offset by asset sales.

The refining division posted a net operating profit in the background, while the industry margins will be improving the contrary.

General manager Peter Voser think this trend will last in the refining and lower natural gas prices in the U.S. will continue to nibble away at profits.

Share and Enjoy

  • Facebook
  • Twitter
  • Delicious
  • LinkedIn
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS