The numbers have failed to inspire against the backdrop of a generally lacklustre market. Overall profit was shy of expectations, costs are on an upward trend within the industry and the weakness of the gas price has impacted on Shell.
MALCOLM GRAHAM-WOOD VSA CAPITAL
The results didn’t blow the market away and were light as gas overtook liquids, which gave a negative slant to the numbers. Downstream was better than expected although in areas such as Europe, margins have fallen recently.
HOOTAN YAZHARI BANK OF AMERICA MERRILL LYNCH
Shell's production guidance is in line with our forecasts. However, gross capital expenditure came in a touch higher than our forecasts, again highlighting our concerns that Shell's medium term capex is on a steep upward trajectory.