Net income in the first quarter rose 57% to $5.48bn from $3.49bn in the year ago quarter. On a current cost of supplies (CCS) basis, net income for the quarter was $4.9bn compared to $3.3bn a year ago. Basic CCS earnings per share increased by 48% versus the same quarter a year ago.
First quarter 2010 Upstream earnings were $4.4bn compared to $2.2bn a year ago. Earnings included a net gain of $110m related to identified items, compared to a net gain of $330m in the first quarter 2009.
Upstream earnings compared to the first quarter 2009 reflected the effect of higher realized oil prices on revenues, increased oil and natural gas production volumes and improved LNG sales volumes, which were partly offset by the impact of lower realized natural gas prices and higher royalty expenses compared to the first quarter 2009.
First quarter 2010 downstream CCS earnings were $743m compared to $1,003m in the first quarter 2009. Earnings included a net charge of $35m related to identified items, compared to a net charge of $205m in the first quarter 2009.
Downstream CCS results compared to the first quarter 2009 reflected lower realized refining margins, lower refinery plant intake volumes and lower marketing contributions, which were partly offset by improved chemicals sales volumes and earnings.
Peter Voser, CEO of Royal Dutch Shell, said: “Our results have improved considerably compared with year-ago levels, and our profitability has increased from the low levels we saw in the fourth quarter 2009. This has been driven by higher energy prices, operational and production performance and Shell’s growth programs.”
