Shell says net profits hit 3.5 bln dlrs in third quarter

28th October 2010, Comments 0 comments

Royal Dutch Shell said Thursday that net profits rose seven percent to 3.463 billion dollars (2.5 billion euros) in the third quarter, compared with the same period one year ago.

The group also revealed in a results statement that net earnings fell 21 percent in the third quarter, when compared with the previous three months.

However, adjusted net profit -- stripping out exceptional items and changes to the value of oil inventories -- rocketed 88.4 percent to 4.933 billion dollars in the three months to September, compared with the same part of 2009.

Earnings were propelled by higher oil and gas prices, higher output and greater cost efficiency, Shell said in the earnings release.

The result beat market expectations for adjusted net profit of 4.32 billion dollars, according to analysts polled by Dow Jones Newswires.

Production meanwhile rose five percent over the period to 3.058 million barrels of oil equivalent per day.

"Our results have rebounded substantially from year-ago levels, driven by some improvement in industry conditions, and Shell's strategy," said chief executive Peter Voser said in the earnings release.

"We are seeing new growth, with improved earnings and cash flow, underpinned by a 5.0-percent increase in oil and gas production, a 22 percent increase in LNG (liquefied natural gas) sales and increased downstream volumes."

© 2010 AFP

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