The largest oil company in Europe – Royal Dutch Shell Plc made a statement today, saying its profit for the first financial quarter, excluding one-time items and inventory changes, fell by 3% from 7.5 to 7.3 billion dollars, due to increased expenses and amid production drop. The results, however, surpassed the median analysts estimates of a 5-billion-dollar profit. The company has also revealed a dividend increase to 0.47 dollars per share from 0.45 dollars per share a year ago and said that it is considering to get rid of some marketing assets located in Norway.
The company also reported a first-quarter revenue that decreased from 112.81 to 109.66 billion dollars. Shells net profit for the first three months of the financial year fell from 8.18 to 4.51 billion dollars. The operating cash flow over the first quarter, excluding working capital movements, was 13.1 billion dollars, which is a higher result in comparison to the one posted for the same period last year, which amounted to 11.5 billion dollars.
These are the first quarterly results of Royal Dutch Shell Plc since the current Chief Executive Officer Mr. Ben van Beurden took the helm in January this year. Mr. van Beurden said in the companys statement, which was cited by the Wall Street Journal: “The impairments we have announced today in downstream reflect Shells updated views on the outlook for refining margins.” As reported by the Financial Times, Shells Chief Executive Officer also said: “Our investment strategy is delivering where it matters – at the bottom line.”
In January Royal Dutch Shell Plc projected a production decrease of 8.5% in the three months through March 31st, from a year ago. That was the time when Ben van Beurden succeeded Mr. Peter Voser at the position of Chief Executive Officer.
Recently, Royal Dutch Shells profit has been affected by increasing costs. This trend is being observed in the refining businesses of other large oil companies, too. Chief Executive Offier van Beurden has been currently focused on cutting costs, especially the ones for new projects in order to improve the companys results. Mr. van Beurden said that the company has set three paramount goals: achieving better financial results, improving its capital efficiency, which includes implementing a divestment programme, that is expected to generate about 15 billion in 2014 and achieving strong project delivery.
Royal Dutch Shell Plc added 4.25% to trade at 2 377 pence per share by 11:12 GMT, marking a one year change of +8.19%.
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