Shell profits rocket by 245 per cent as oil prices recover

 
Lucy White
24 Hours of Le Mans
Shell has revved up its game with an increasing focus on reshaping its portfolio (Source: Getty)

Royal Dutch Shell has reported a surge in profits which exceeded expectations this morning, as the oil giant revealed its second-quarter earnings were up 245 per cent.

Shell's profits accelerated to $3.6bn (£2.7bn) over the quarter, compared to $1bn in the same period last year, as oil prices slowly recover.

Read more: Brent crude oil prices are rising above $50 a barrel

Meanwhile the cash flow from operating activities was $11.3bn compared with $2.3bn in last year's second quarter.

“Shell’s strong results this quarter show that we are re-shaping the company following the integration of BG," said chief executive Ben van Beurden.

“Cash generation has been resilient over four consecutive quarters, at an average oil price of just under $50 per barrel."

The company also announced that the reshaping of its portfolio was continuing, with more than $25bn of its $30bn divestment target completed, announced or in "advanced progress".

Read more: Royal Dutch Shell is among companies looking to snap up $5bn Asian renewables firm Equis Energy

This also contributed to the company's debt reduction, with gearing at the end of the second quarter down to 25.3 per cent from 28.1 per cent at the same time in 2016.

“The external price environment and energy sector developments mean we will remain very disciplined, with an absolute focus on the four levers within our control – namely capital efficiency, costs, new project delivery and divestments," said van Beurden.

Shell announced a second-quarter dividend of $0.47 per share. At the time of writing, the company's share price was up 0.93 per cent.

Read more: Royal Dutch Shell received a huge UK tax credit due to North Sea decommissioning costs

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