Anglo-Dutch supermajor Shell has had a terrific third quarter, posting earnings of $7 billion as high oil prices send cash flooding into the firm’s coffers.
The same quarter last year saw earnings of $3.5 billion.
Basic CCS earnings were $7.2 billion, 106% higher than in the same quarter a year ago. CCS earnings strip out unrealised gains or losses related to changes in the value of inventories, and as such are comparable with net income under U.S. accounting rules.
Cash flow from operating activities for the third quarter 2011 was $11.6 billion. Excluding net working capital movements, cash flow from operating activities in the third quarter 2011 was $10.6 billion, compared with $8.1 billion in the same quarter last year.
Upstream dominated revenues and profits accounting for $5.1 billion of total earnings.
Commenting on the results, Shell CEO Peter Voser said:
“We continue to make good progress with our strategy; improving our competitive performance, delivering a new wave of production growth, and maturing the next generation of growth options for
shareholders.”
“Our profits pay for Shell’s substantial investments in new energy projects, to ensure low-cost, reliable energy supplies for our customers and to create value for our shareholders. Our third quarter results were higher than year-ago levels, driven by higher oil prices and Shell’s performance.”
“In Upstream, our oil and gas production excluding divestments grew by 2% from year-ago levels, driven by the continued ramp-up of our growth projects, mainly in Qatar and Canada. Shell’s LNG sales
volumes increased by 12%, with continued robust demand for gas.
“Our Downstream results were supported by increased Chemicals earnings, with a resilient performance from Oil Products, despite the more difficult economic environment. We have resumed our share buyback programme, with $0.8 billion of buybacks during the quarter, at a time when financial markets have been weak.”
Â
