Shares in Royal Dutch Shell (LON:RDSA) have climbed into positive territory in today’s session, after the company posted a rise in quarterly profits, having found support in better crude prices and strong performance in its refining business. The oil major’s cash flow, however, slowed down during the reported period.
As of 08:29 GMT, Shell’s share price had added 0.23 percent to 2,365.00p, slightly outperforming the broader UK market, with the benchmark FTSE 100 index having fallen marginally into the red and currently standing 0.03 percent lower at 7,485.55 points. The group’s shares have added just under 14 percent to their value over the past year, and are up by some five percent in the year-to-date.
Shell sees profits soar
Shell reported in a statement today that current cost of supply earnings attributable to shareholders, excluding identified items, had grown 47 percent to $4.1 billion. Basic CCS earnings per share excluding identified items meanwhile spiked 0.43 percent to $0.50. The oil major maintained its dividend per share unchanged at $0.47.
“Shell’s three businesses all made resilient contributions to this strong set of results,” Shell’s chief executive Ben van Beurden commented in the statement, adding that the group’s upstream business had generated almost half of the group’s cash flow from operations excluding working capital, “at an average Brent oil price of $52 per barrel, and this was complemented by good cash contributions from our growing Integrated Gas business and from Downstream”.
Cash flow drops
Shell, however, also disclosed that its cash flow from operating activities for the third quarter had declined 11 percent to $7.6 billion, and had included negative working capital movements of $2.5 billion, mainly due to increases in inventory value and current receivables.
Shell’s results follow peer BP’s (LON:BP) update earlier this week.