Royal Dutch Shell’s second quarter 2014 earnings, on a current cost of supplies (CCS) basis, were $5.1 billion compared with $2.4 billion for the same quarter a year ago.
Earnings included an identified net charge of $1.0 billion after tax, mainly reflecting impairments which were partly offset by divestment gains. Second quarter 2014 CCS earnings excluding identified items were $6.1 billion compared with $4.6 billion for the second quarter 2013, an increase of 33%
Compared with the second quarter 2013, CCS earnings excluding identified items benefited from higher liquids production volumes and prices, the impact of the strengthening Australian dollar on a deferred tax liability, and higher contributions from Manufacturing. These items were partly offset by increased depreciation, higher costs, and the phasing of a dividend from an LNG venture into the third quarter of 2014.
Oil and gas production for the second quarter 2014 was 3,077 thousand boe/d, in line with the second quarter 2013. Excluding the impact of divestments, Abu Dhabi license expiry, PSC price effects, and security impacts in Nigeria, second quarter 2014 production was 4% higher than for the same period last year.
Shell CEO Ben van Beurden commented: “We are making progress with the priorities I set out at the start of 2014: to balance growth and returns by
focusing on better financial performance, enhanced capital efficiency, and continued strong project delivery”
“We are taking firm actions to improve Shell’s capital efficiency by selling selected assets and making tougher project decisions.”
The company has so far this year divested $8 billion of assets.