Following on from BP and ConocoPhillip’s declarations of sizable profit increases, Shell has recorded profits of $5.5 billion for the first quarter, ironically matching rival BP’s profit increase of 29%, although bringing in half a billion dollars more.
Once again high oil prices were the key constituent part of the improved income. However, surprisingly, on declaring its financial results for the period, Shell also said that its UK retail business, which includes the forecourt petrol pumps, actually made a loss.
Meanwhile, Shell will be thankful for the high oil prices as the phenomenon helped to maintain strong profit despite the fact that the company’s crude oil production fell 8% in the quarter, while hydrocarbon production was down by 2%.
Jeroen van der Veer, Shell chief executive, commented: The first quarter was an excellent start of the year for Shell with strong financial performance across all of our businesses. On the business fundamentals we have momentum with continued good downstream operational performance, production at the higher end of our expectation for the quarter, LNG volume growth and new integrated gas projects in Qatar and Nigeria, along with progress at Gorgon.
