Shell has reported Q2 net earnings of $8 billion, a 77% increase on Q2 2010, when the company banked $4.5 billion.
Cash flow from operating activities for the second quarter 2011 was $10.0 billion. Excluding net working capital movements, cash flow from operating activities in the second quarter 2011 was $12.3 billion, compared with $8.6 billion in the same quarter last year.
Oil and gas production fell 2 percent to 3.05 million barrels of oil equivalent per day, due to field sales and a warm second quarter which hit European gas demand.
Excluding divestments, output rose 2 percent — a sign that the company’s large recent investment in new projects was beginning to show returns.In a company statement Peter Voser, Shell’s CEO highlighted the company’s major projects in Canada and Qatar as key contributors to growth.
In Canada’s oil sands, the start-up of the 100 thousand barrels per day (b/d) expansion of the Scotford Upgrader marked the completion of the AOSP Expansion 1 project which will continue to ramp up across 2011.
In Qatar, the Qatargas 4 project, which came on stream during the first quarter 2011, has now fully ramped up, reaching planned capacity of 7.8 million tonnes per annum (mtpa) of LNG. In the second quarter 2011 the new Pearl Gas-To-Liquids (GTL) project in Qatar sold its first GTL gasoil shipment from Train 1.
The Anglo-Dutch supermajor nevertheless has seen it’s London-listed ‘A’ shares fall 1.7% on the news at the time of writing (08.12 BST), as the figures undershot average analysts’ expectations. Excluding one-offs the result was $6.55 billion, just below an average forecast of $6.70 billion in a Reuters poll of eight analysts.
“Our second quarter 2011 earnings were higher than year-ago levels, driven by increased energy prices and Shell’s operating performance. Shell reinvests its profits to meet customer demand for low cost energy, and to pay attractive returns to shareholders,” said Voser.
“In Upstream, our volumes increased by 2% excluding asset sales impacts, driven by new growth projects. In Downstream, maintenance activities and weak industry refining margins masked a resilient performance from Oil Products marketing and Chemicals in the quarter, Voser said. “Shell’s strategy is on track; performance focus, delivering a new wave of production growth, and maturing the next generation of growth projects for shareholders”.
