Friday, 20 May, 2022

Shell profits jump on higher oil prices

LONDON: Royal Dutch Shell said Thursday that net profit jumped 43 percent in the third quarter, energised like its competitor by rising oil and gas prices.

Profit after tax leapt to $5.84 billion (5.15 billion euros) in the three months to September from $4.09 billion in the same period of 2017, the Anglo- Dutch energy giant said in a statement, reports AFP.

“Earnings primarily benefited from increased realised oil, gas and liquefied natural gas (LNG) prices,” it added.

The news came two days after British rival BP revealed that its third- quarter net profit had doubled on sharply higher oil prices.

Brent crude prices soared in September to a four-year peak above $82 a barrel partly on supply fears particularly in Iran, which faces new US sanctions. That contrasted with about $50 a barrel in the summer of last year.

Supply also remains under pressure after the OPEC oil cartel joined forces with 10 non-members including Russia to curb their collective output at the end of 2016.

The move was aimed largely at countering surging shale energy production in the United States, a key factor which had helped push Brent oil under $30 earlier that year.

The so-called OPEC+ group agreed a milestone deal to trim production from January 2017 by 1.8 million barrels a day to clear a global oil glut.