Royal Dutch Shell continued to cash in on high-energy prices yesterday as it reported profits of nearly £5billion for three months trading.
The first-quarter profit haul of £4.75billion – measured on a current cost of supply basis – was 11% higher than a year ago.
It also meant the oil and gas supermajor earned £2.2million an hour, or nearly £37,000 a minute, during the period.
On a pre-tax basis, the firm’s surplus came in at around £9.5billion, about £4.4million an hour, although this was down by 6% on a year earlier. Revenue in the latest period totalled £74billion, up from just under £68billion previously.
In addition to high oil prices, with Brent crude currently at about $120 a barrel, Shell said the profit haul reflected improvements in its own operating performance and better production volume.
Chief executive Peter Voser hailed the company’s progress and said the profits were essential to help it to deliver a new wave of production growth.
He added: “Our profits pay for Shell’s dividends and substantial investment in new energy projects to ensure affordable, reliable energy supplies for our customers, which create value for our shareholders.”
The company said asset sales this year were likely to top £2.5billion, however, higher than previous guidance, as Shell looked to improve financial headroom for projects with greater growth potential.
Mr Voser said there were some 26 projects being developed by the company worldwide.
He added: “This industry-leading project line-up, combined with a focus on innovation and competitive performance across the company, will drive Shell to the clear targets we have set out for shareholders.”
Profits from exploration and production were up on a year earlier and the previous quarter to £3.9billion.
Downstream profits in the latest period were £681,000, compared with losses at the end of 2011 but lower than in the first quarter of last year.
Shell has continued to divest downstream assets, including petrol stations in North America and operations in Asia-Pacific.
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