Shell’s Profit Surges as Oil Sector Rebounds
Royal Dutch Shell said net profit more than doubled in the first quarter, joining its peers in beating analyst forecasts as rebounding oil prices and refining margins lifted revenue after a near three-year downturn.
A 55 per cent rise in oil prices from a year ago and deep cost cuts boosted cash generation, enabling the Anglo-Dutch company to cover spending and dividend payouts, while reducing debt following its $54-billion acquisition of BG Group last year.
Shell remains on track to hit its $30-billion asset disposal program by 2018 to finance the BG acquisition, selling around $20-billion since 2016, including a large portfolio in the North Sea and exiting Canada’s oil sands.
Written by Ron Bousso for Reuters.com