Shell profit jumps on high energy prices

Shell profit jumps on high energy prices

Shell profit jumps on high energy prices

Energy major Royal Dutch Shell said yesterday that profits leapt by about two thirds in the first quarter of 2018, energized by resurgent global crude oil and gas prices.

Earnings after taxation, or net profit, surged 67 percent to almost $5.9 billion (4.8 billion euros) in the three months to March compared with around $3.5 billion a year earlier, the London-listed giant said in a results statement.

“Shell’s strong earnings this quarter were underpinned by higher oil and gas prices, the continued growth and very good performance of our integrated gas business, and improved profitability in our upstream business,” said chief executive Ben van Beurden.

“Less favorable refining market conditions and lower contributions from trading impacted the earnings of our downstream business,” he added.

The downstream division includes refining, marketing and distribution, while upstream comprises exploration and production.

The OPEC cartel and Russia struck a deal in late 2016 to trim production to reduce a global glut that had sent prices crashing.