Shell beats expectations in Q1 earnings

Shell beats expectations in Q1 earnings

/ Financial News / Monday, 06 May 2019 08:40

Energy giant Royal Dutch Shell said its net profit edged higher to $6 billion in the first quarter, with gains capped by cooler oil prices and a dip in production.

Profit after tax climbed two percent compared with the first three months of 2018, the Anglo-Dutch group said in an earnings statement.

Oil and gas production dipped two percent to 3.75 million barrels per day, while average crude prices were slightly lower compared with the first quarter of 2018.

“Shell has made a strong start to 2019,” chief executive Ben van Beurden said in the statement. “The consistent financial performance across all our businesses provides confidence in meeting our 2020 outlook,” he added.

After the earnings update, Shell shares jumped 2.2 percent on London's benchmark FTSE 100 index, which was down 0.2 percent.

“Royal Dutch Shell today reported Q1 numbers that were well ahead of analysts' forecasts, with an underlying profit of $5.4 billion,” Hargreaves Lansdown stockbrokers said in a research note.

Rival BP said its own first-quarter net profit jumped by almost a fifth, as rising production and lower costs eclipsed the impact of weaker oil and gas prices.

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