Waiting game

30 April 2015 By Fiona Maharg-Bravo

Like BP and Total, profit from refining and marketing limited pain from low oil prices for the Anglo-Dutch major. Short term, it will struggle. But there is value to be had from the $70 billion tie-up with BG. The deal synergies could well be higher than advertised.

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Context News

Royal Dutch Shell on April 30 reported net profit of $3.2 billion in the first quarter of 2015, excluding inventory charges and one-offs, down 56 percent from the same quarter a year ago.

The sharp drop in oil prices sent upstream earnings down to $675 million in the quarter, from $5.7 billion a year earlier. This was partially offset by a 68 percent rise in profit from refining and trading to $2.65 billion.

Shell said cash from operations was $7.1 billion in the quarter, while capital investment totalled $6.8 billion and dividends paid cost $2.9 billion. Shell said it expects organic capital expenditure to be $33 billion or less in 2015, or $2 billion less than previous guidance. Shell has sold $2.2 billion in assets so far this year.

At 1050 GMT, Shell shares were up 1.3 percent to 2,095 pence.

Context News

Royal Dutch Shell on April 30 reported net profit of $3.2 billion in the first quarter of 2015, excluding inventory charges and one-offs, down 56 percent from the same quarter a year ago.

At 1050 GMT, Shell shares were up 1.3 percent to 2,095 pence.

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