Oil major Shell saw its first quarter profit rise by 42 percent underpinned by higher oil and gas prices.
On a current cost of supplies (CCS) basis, Shell’s first quarter 2018 earnings, excluding identified items, were $5.3 billion, up 42% from $3.8 billion for the first quarter of 2017.
Shell Chief Executive Officer, Ben van Beurden, commented: “Shell’s strong earnings this quarter were underpinned by higher oil and gas prices, the continued growth and very good performance of our Integrated Gas business, and improved profitability in our Upstream business.”
Beurden also said: “Our commitment to capital discipline is unchanged, we are making good progress with our $30 billion divestment programme and our outlook for free cash flow – which covered our cash dividend and interest this quarter and over the last year – is consistent with our intent to buy back at least $25 billion of our shares over the period 2018-2020.”
Namely, of the 2016-2018 $30 billion divestment program, $26 billion is complete with more than $6 billion announced or in advanced progress.
Shell’s first quarter 2018 oil and gas production was 3,839 thousand barrels of oil equivalent per day, an increase of 2% compared with the same period of 2017.
Compared with the first quarter 2017, Upstream earnings excluding identified items benefited from higher realized oil and gas prices as well as lower depreciation. This more than offset the impact of lower volumes.
First quarter production decreased by 5%, compared with the same quarter a year ago, mainly due to the divestments of a package of assets in the UK North Sea, oil sands interests in Canada and onshore assets in Gabon, partly offset by new fields ramping-up. Excluding portfolio impacts, production was 4% higher than in the same quarter a year ago.
Offshore Energy Today Staff