Shares in Royal Dutch Shell (LON:RDSA) have gained more than two percent in London this morning, as the company unveiled that its profits had more than doubled in the first three months of the year. The Anglo-Dutch oil major has benefitted from a recovery in crude prices, as well as improved refining margins.
As of 08:31 BST, Shell’s share price had added 2.65 percent to 2,071.50p, outperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.56 percent higher at 7,274.88 points. The group’s shares have gained more than 21 percent over the past year, but have given up some seven percent in the year-to-date.
Shell announced in a statement this morning that its current cost of supply (CCS) earnings had jumped 142 percent to $3.75 billion in the first three months of the year. The Financial Times noted in its coverage of the news that the result was well ahead of analysts’ consensus forecast for $3.05 billion. The oil major left its dividend per share unchanged at $0.47.
The company’s chief executive Ben van Beurden said that the oil major had seen “notable improvements in Upstream and Chemicals, which benefited from improved operational performance and better market conditions”.
“Following the successful integration of BG, we are rapidly transforming Shell through the consistent and disciplined execution of our strategy,” he noted, adding that the strategy included “investing around $25 billion this year and the delivery of new projects, which we expect to generate $10 billion in cash flow from operating activities by 2018”.
Shell has benefitted from a recovery in the oil price alongside peers following the OPEC oil producers’ cartel agreeing a cut to output last year.