The Hague-based LNG giant Shell on Thursday reported a 47 percent rise in profit for the third quarter, driven by higher oil, gas and LNG prices.
Shell’s earnings on a current cost of supplies (CCS) basis and excluding exceptional items rose to $4.1 billion, or 47 cents share, for the three months ending in September, topping analysts’ forecasts. This compares with $2.8 billion in the same period last year.
Production rose by 2 percent to 3.7 million barrels per day.
“Shell’s three businesses all made resilient contributions to this strong set of results. Upstream generated almost half of the $10 billion cash flow from operations excluding working capital this quarter, 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,” said chief executive Ben van Beurden.
“This competitive performance is further evidence of Shell’s growing momentum, and strengthens my firm belief that our strategy is working,” he added.
LNG sales climb
Integrated gas — a business swelled by last year’s acquisition of LNG player BG Group — earned $1.3 billion, up from $931 million in 2016.
Shell said its LNG sales volumes increased by 11 percent in the third quarter to 16.97 million mt as compared to the previous quarter. The volumes rose 1.27 million mt from the third quarter last year.
LNG sales volumes reflected higher liquefaction volumes and increased trading of third-party volumes compared with the same quarter in 2016, Shell noted in its report.
The company’s LNG liquefaction volumes rose 10 percent to 8.45 million mt as compared to the previous month while they were up 0.75 million mt on year.
These volumes increased mainly due to higher production from Gorgon in Australia with three trains online, compared with one train in the same quarter last year, Shell said.
LNG World News Staff