Shell and Statoil Q3 Earnings Surge on Higher Oil and Gas Prices

October 27 00:00 2011

New York, October 27 (RainbowNewsLine.com) – Higher oil and gas prices along with increased production helped Royal Dutch Shell Plc and Norway’s Statoil to post big jumps in profits on Thursday.

Shell, Europe’s largest oil company by market capitalization, reported that underlying current cost of supply net income in the third quarter, excluding one-offs, surged by 42 percent to $7.0 billion. Statoil posted its adjusted net income that soared 50 percent in dollar terms to $2.07 billion in the third quarter. Both companies reported earnings that were in line with analysts’ forecasts.

Shell’s London-listed “A” shares traded up 1.7 percent at 2,292 pence at 0809 GMT, compared with a 1.4 percent rise in the STOXX Europe 600 Oil and Gas index .SXEP. Statoil shares rose 2.2 percent to 144.8 NOK.

Exxon Mobil, the world’s largest publicly-traded oil company, is also expected to report later on Thursday, a 40 percent jump in third-quarter net income to $10.26 billion.

Shell’s huge investments in big new projects are now beginning to pay off. Analysts said Shell was entering a “sweet spot” of strong cash flow mainly because of its Athabasca oil sands project in Canada, and its Pearl gas-to-liquids and Qatargas liquefied natural gas plants in Qatar.

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