Shell earnings double amid crude prices recovery
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The group said underlying earnings on a current-cost-of-supply basis surged to $3.8 billion (£3bn), up from $1.6bn a year earlier.
It follows an impressive first quarter for the sector, with rival BP revealing earlier this week it returned to profit with earnings of $1.4bn against losses of $485 million a year ago.
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Hide AdUS oil giants ExxonMobil and Chevron also posted better-than-expected earnings last week thanks to a rebound in crude prices, which were more than 50 per cent higher in the first quarter than a year earlier, when they had hit near 13-year lows.
Shell chief executive Ben van Beurden said it was a “strong quarter” for the group, adding that its takeover of smaller rival BG Group, which completed last year, was starting to pay off.
Shell has sold off about $20bn of assets since its acquisition of BG, while earnings have also been boosted by hefty cost-cutting over the past three years.
“The strategy we have outlined to deliver a world-class investment case is taking shape,” said van Beurden.
“Following the successful integration of BG, we are rapidly transforming Shell through the consistent and disciplined execution of our strategy.”
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Hide AdShell’s upstream business, which includes exploration and production, swung out of the red with underlying earnings of $540m, against losses of $1.4bn a year earlier.
Its downstream business, which includes refining, saw underlying profits rise 24 per cent to $2.5bn.