Amid recovering oil prices
Beating all expectations, Anglo-Dutch oil giant Royal Dutch Shell has reported a near 50 per cent rise in net profit for the third quarter driven by gains in oil refining and trading operations.
According to reports, the oil giant beat analyst forecasts of $3.6bn for the latest quarter and reported £3bn in earnings for the last quarter on a current cost of supply basis.
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Chief Executive Officer Ben van Beurden said that “Shell’s three businesses all made resilient contributions to this strong set of results”. The earnings, he said, were evidence of Shell’s “growing momentum” which strengthens his ‘firm belief’ that the company’s strategy is working.
Shell is reportedly embarking on an ambitious cost-cutting drive and a£24.6bn divestment initiative.
The oil major has also undertaken a major overhaul of its business by shifting the balance of its activities from oil towards more gas production, and from high-cost areas towards projects that can be profitable even at very low oil prices.