Royal Dutch Shell reported results for Q1 2012 today, with profits up through a combination of improvements in performance and volumes, as well as strong oil prices.
Shell’s first quarter 2012 earnings were $7.7 billion compared with $6.9 billion in the same quarter a year ago – an increase of 11 percent.
“We are making good progress against our targets to deliver a more competitive performance,” said chief executive officer Peter Voser.
“Shell’s first quarter 2012 earnings increased from year-ago levels, through a combination of improved operating performance, increased upstream volumes and strong oil prices. Energy demand fundamentals are robust, but with near-term volatility in energy prices as a result of economic and political events. In downstream and North American natural gas we see continued challenges for our industry.
“During the quarter, production commenced at the Caesar/Tonga project in the Gulf of Mexico and the Pluto LNG project in Australia reached ready-for-start-up status. These two non-operated positions are expected to add a total of some 40 thousand barrels of oil equivalent per day (boe/d) at peak for Shell and 0.9 million tonnes per annum (mtpa) of LNG capacity.
“The ramp-up of Shell’s flagship Pearl GTL project in Qatar continued during the quarter, and the project is on track to reach full capacity in the middle of 2012. In the last few weeks, crude oil processing commenced at the Port Arthur refinery expansion project, creating one of the largest refineries in the United States.”
Voser added: “We continue to mature new investment options for medium-term growth, including new exploration acreage and positive results from the on-going appraisal of the Appomattox oil discovery in the Gulf of Mexico, where we see scope for some 500 million boe of resources with further upside potential. I am also very pleased to welcome new strategic partners into Shell’s Prelude Floating LNG project in Australia, as we continue to develop new international natural gas resources and markets.
“The resumption of measured, affordable dividend growth we have confirmed today reflects the improving financial position of the company and delivery of our strategy,” Voser concluded.
Meanwhile one of Shell’s rivals, ExxonMobil, also reported its Q1 2012 results today, with earnings of $9.5 billion down 11 percent from the first quarter of 2011. Oil-equivalent production was down over 5 percent from 2011, after some its older fields began to run short of oil. Exxon also saw lower profits from its chemical and refining businesses.
