Alexa
  • Directory of Taiwan

Royal Dutch Shell Q3 profit up 16 percent to US$6.92 billion

Royal Dutch Shell Q3 profit up 16 percent to US$6.92 billion

Royal Dutch Shell PLC said Thursday third-quarter net profit rose 16 percent, despite a fall in production, but warned the underlying performance of its refining operations were weaker than it appeared.
Net profit was US$6.92 billion (euro4.87 billion), up from US$5.94 billion, primarily due to a rise in the reported refining earnings. Sales were US$90.7 billion (euro63.8 billion), up from US$84.3 billion.
In refining, earnings were US$2.15 billion (euro1.51 billion), up more than 70 percent from a year ago on a reported basis. However, Shell said that numbers this year looked better than the reality. The company said oil prices had risen between when the oil was pumped out and when it was refined, inflating refining earnings _ and the opposite was true a year ago.
On a comparable basis, refining earnings fell 24 percent to US$1.65 billion (euro1.16 billion), Shell said. Using those numbers, which are not permitted under official accounting but are preferred by industry analysts, Shell's earnings would have fallen around 6 percent.
Still, that was better than the performance of Shell's largest European rival BP, which reported a 29 percent fall in earnings to US$4.4 billion (euro3.09 billion) on Tuesday.
Shell's shares rose 0.5 percent to euro29.79 (US$42.34) in early Amsterdam trading.
"Given the weaker industry refining margins we have seen in the quarter, these are satisfactory results," said Chief Executive Jeroen van der Veer in a statement.
Meanwhile, production of oil and gas fell by 3.4 percent from 3.25 million barrels of oil or equivalents per day to 3.14 million. That led to a 6 percent fall in production earnings to US$3.51 billion (euro2.47 billion).
Production earnings were still near record highs due to the price of oil. Shell's selling prices were above US$70 a barrel in the quarter, up from around US$65.
Shell said the major reason for the production fall was declining production at existing fields.
In addition, earnings were hurt by a dramatic change in terms in Shell's participation in the Sakhalin island project in Russia. Shell was forced to cede control to OAO Gazprom at the behest of the Russian government. In April, Shell completed the sale of a 27.5 percent stake, leaving it with 27.5 percent. Terms were not disclosed, but Shell said Thursday its exploration costs had increased as a result of the deal, while proceeds fell.
The company had net gains of US$265 million (euro186 million) from asset sales and a windfall from a tax change in Germany, versus charges of US$77 million a year ago.


Updated : 2021-10-24 05:55 GMT+08:00