Leading oil firm, Royal Dutch Shell Plc, has battled hurricane fury rather resiliently, what with it posting an admirable 67% increase in its third quarter earnings on Thursday.
A 49% surge in oil prices offset all losses incurred by Dutch Shell due to rig damages in the hurricane-hit Gulf, and instead led it to amass profits of US$9.39 billion or 7.78 billion euros, in the third quarter. This could be compared to last year’s profits of US$5.62 billion, with gains of US$1.77 billion (euro1.47 billion) derived chiefly through pipeline assets’ sale by Gasunie NV of the Netherlands, along with certian UK gas contract valuations.
Shell posted an 8% hike in revenues to US$76.44 billion (€63.35 billion). Jeroen van der Veer, chief executive at Shell acknowledged that the company’s forecasts were upbeat despite devastation caused by hurricanes, Rita and Shell’s production outlook for 2005 is around 3.5 million barrels of oil equivalent per day.
Besides, its Mars platform that had been left battered by hurricane Katrina is likely to is expected to recommence production by the second half of next year. Shell’s set-up there manufactures about 250,000 crude oil barrels per day, along with 365 million cubic feet of gas every day.
Meanwhile, expenses incurred on repairing rigs and refineries in 2005 as well as in 2006 would amount to around US$350 million (euro290 million) post taxes, albeit a major portion would be claimed through insurance.
Shell added that its adjusted earnings on a CCS basis, i.e. current cost of supplies which does not include gains received from rising fuel stock prices and one-time costs, scaled 68% high and touched US$7.37 billion (euro6.11 billion) from the erstwhile US$4.38 billion.
Hence, Royal Dutch Shell shares at the London Stock Exchange leapt 1.5% to hit 1,804 pence.
Posted
on : Fri, 28 Oct 2005 05:45 GMT | Business News
By : Mark Richardson
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