Royal Dutch Shell PLC reported second-quarter earnings on a current cost of supplies basis, excluding identified items, of $3.6 billion, up from $1.05 billion in second-quarter 2016.
For the first half, the supermajor recorded earnings of $7.36 billion, up from $2.6 billion in first-half 2016.
“Shell’s strong results this quarter show that we are reshaping the company following the integration of BG,” commented Ben van Beurden, Shell chief executive officer. “The external price environment and energy sector developments mean we will remain very disciplined, with an absolute focus on the four levers within our control, namely capital efficiency, costs, new project delivery, and divestments.”
Second-quarter results were bolstered by Shell’s downstream business, which posted earnings of $2.53 billion, up from $1.82 billion in second-quarter 2016. Compared with second-quarter 2016, downstream earnings excluding identified items benefited from stronger chemicals and refining industry conditions, improved operational performance, and lower operating expenses.
The integrated gas segment also recorded an increase, rising to $1.17 billion from $868 million a year earlier. Compared with second-quarter 2016, integrated gas earnings excluding identified items benefited from higher realized oil, gas, and LNG prices, higher LNG volumes, and lower operating expenses. This more than offset the impact of lower liquids production volumes and lower contributions from trading.
Shell’s upstream business posted second-quarter earnings of $339 million compared with a loss of $1.33 billion a year earlier. Compared with second-quarter 2016, upstream earnings excluding identified items benefited from higher realized oil and gas prices, lower depreciation including the impact of assets held for sale and divestments, and increased production volumes mainly from assets ramping up.