Shell share price dips even as oil major posts rise in Q1 profits

Downstream business weighs on performance

Shell share price dips even as oil major posts rise in Q1 profits

Shares in Royal Dutch Shell (LON:RDSA) have fallen into the red in today’s session, even as the blue-chip oil major posted a rise in profits for the first quarter of the year. The group’s free cash flow, however, inched marginally lower during the reported period.

As of 08:27 BST, Shell’s share price had given up 1.74 percent to 2,484.50p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.19 percent lower at 7,365.49 points. The group’s shares have added more than 21 percent to their value over the past year, as compared with about a 1.2-percent gain in the Footsie.

Shell posts Q1 results

Shell said in a statement this morning that its current cost of supply earnings had jumped 69 percent to $5.7 billion in the first quarter, while its income had soared 67 percent to $5.9 billion as the company continued to benefit from stronger oil prices. The oil major’s free cash flow, however, inched from $5.184 billion to $5.178 billion. The company left its dividend unchanged at $0.47 per share.

“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,” the group’s chief executive Ben van Beurden commented in the statement, adding that less favourable refining market conditions and lower contributions from trading had impacted earnings from the company’s Downstream business.

Analysts weigh in

“Surging crude prices are good news for the oil majors and their shareholders, and it was no different for Royal Dutch Shell during its first quarter,” Lee Wild, head of equity strategy at Interactive Investor, noted, as quoted by City A.M.

As of 08:59 BST, Thursday, 26 April, Royal Dutch Shell Plc 'A' share price is 2,484.50p.

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