Shell share price up as Chad Holliday replaces Jorma Ollila as chairman and third quarter profit beats expectations

 
Lynsey Barber
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Shell profits rise despite lower oil prices (Source: Getty)

Shell has named former Bank of America chairman Chad Holliday as its new chairman, replacing Jorma Ollila who is set to exit in 2015 after a nine-year stint at the top.

Shares in the oil giant spiked nearly one per cent in early trading.

Despite lower oil prices, the company reported third quarter profits jumped 31 per cent to $5.8bn compared to the same period last year, beating analyst expectations of $5.5bn. Profits did fall on the second quarter however, as it felt some of the effects of oil market volatility.

Shell chief Ben van Beurden said: “The recent decline in oil prices is part of the volatility in our industry. It underlines the importance of our drive to get a tighter grip on performance management, keep a tight hold on costs and spending, and improve the balance between growth and returns.”

The oil company also increased earnings per share, which rose four per cent to $0.47 per ordinary share and $0.94 per American depositary share.

Holliday, already a non-executive director at Shell, was chairman of Bank of America from 2010 until earlier this month. He will remain a non-executive director at the bank. He was also chief executive of Du Pont between 1998 and 2008.

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