Shell raises dividend on higher profits

Shell increases dividends on higher profits

Business News: Shell raises dividend on higher profits.

Royal Dutch Shell’s profits jumped to $ 3.23 billion in the first three months of the year and the energy company raised its dividend as expected, but warned that the outlook remained uncertain due to the coronavirus pandemic. Shell’s adjusted earnings were above an average analyst forecast of $ 3.125 billion and also ahead of earnings of $ 2.9 billion last year, buoyed by asset sales and higher oil and liquefied natural gas prices. (LNG), he said Thursday.

The Anglo-Dutch company reported adjusted earnings of $ 3.2 billion for the three months to the end of March. This compared to $ 2.9 billion from the same period a year earlier and $ 393 million for the fourth quarter of 2020. Analysts had expected first quarter adjusted earnings to be $ 3.1 billion, according to Refinitiv.

Ben van Beurden, CEO of Royal Dutch Shell, said in a statement that the company has “started well” the year and is “ideally placed to take advantage of it. from resumption of demand. Shell confirmed that the massive winter storm that engulfed Texas in February had an aggregate impact of approximately $ 200 million on first-quarter adjusted earnings. It warned that this would likely be the case in an update released on April 7.

Shares of Shell were up around 1.3% during morning operations in London. The company’s share price has risen more than 9% year-to-date, having plummeted nearly 40% in 2020. Shell’s oil and gas trading operations, the largest in the world, did not significantly increase its value. revenue in the quarter, unlike rival BP which reported “exceptional revenue” on Tuesday from its natural gas trading business.

Shell said its LNG trade was significantly below average in the quarter due to credit provisions following the Texas storm, which triggered a massive state power outage and left millions without electricity. heat and water. Shell fuel sales decreased in the first quarter to 4.16 million barrels per day (bpd), but are expected to increase to an average of 4.5 million bpd in the second quarter.

Oil and gas production in Shell’s upstream operations decreased by 9% from a year ago to 2.46 million barrels of oil equivalent per day (boed) due to maintenance and divestments. Production was expected to decline again to 2.25 million boed in the second quarter due to lower seasonal gas demand and additional asset sales.