Shell Q4 profits soar but lag forecasts
Royal Dutch Shell Plc posted a near fivefold increase in fourth quarter net profit on Thursday, powered by higher oil prices, and putting more distance between itself and troubled rival BP.
February 03, 2011 / 13:56 IST
Royal Dutch Shell Plc posted a near fivefold increase in fourth quarter net profit on Thursday, powered by higher oil prices, and putting more distance between itself and troubled rival BP.
The company said fourth quarter 2010 earnings, on a current cost of supplies (CCS) basis, were USD 5.7 billion compared to USD 1.2 billion a year ago when the company suffered heavy refining losses.Excluding non-operating and one-off items, the result was USD 4.1 billion, compared to an average forecast of USD 4.85 billion in a Reuters poll of seven analysts.Exxon Mobil Corp reported a better-than-expected 53% increase in quarterly profit on Monday, while Chevron said net income rose 73%.BP Plc, which is struggling to put the Gulf of Mexico oil spill behind it, reported a 34% rise in Replacement Cost (RC) net income. The result would have been up only slightly were it not for USD 1.4 billion in gains from asset sales.RC and CCS net income strip out unrealised gains related to changes in the value of fuel inventories, so are comparable to US net income.Benchmark US crude prices averaged about USD 85 per barrel in the fourth quarter, up from USD 76 in the fourth quarter of 2009. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
