Business World

Saturday 26 May 2018

Shell posts highest quarterly profit for at least three years due to resurgent oil prices

Shell
Shell

Holly Williams

Royal Dutch Shell has posted its highest quarterly profit for at least three years thanks to resurgent oil prices.

The oil giant reported a 42pc rise in underlying quarterly profits to $5.3bn for the first three months of the year.

Bottom-line profits surged 69pc to $5.7bn.

The group's results are being buoyed by resurgent oil prices, higher production and years of cost cutting.

Shell chief executive Ben van Beurden said: "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."

He added the group was "making good progress" with its $30bn divestment programme, having completed $26bn so far.

The programme was launched in 2016 to help pay down debt taken on for its $50bn buyout of BG Group.

Oil prices have been bouncing back over the past year, helping Shell triple bottom-line profits to £8.5bn in 2017.

Oil briefly reached above 75 US dollars a barrel this week and there are predictions it could reach 100 US dollars amid geopolitical tensions.

Press Association

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