Shell beats Q1 expectations despite lower global oil prices

Royal Dutch Shell outperformed rival oil majors ExxonMobil, Chevron and BP in the first quarter of 2019, after the Anglo-Dutch company reported only a marginal fall in profits in a lower oil price environment.

Shell said that on a current cost of supplies (CCS) basis, earnings attributable to shareholders and excluding identified items dropped to US$5.3 billion, comfortably beating analyst expectations.

Basic earnings per share, on a CCS basis and without identified items, remained unchanged at $0.65, as was the dividend at $0.47.

Meanwhile, the likes of ExxonMobil, Chevron and BP all saw sharper drops in profits during the first three months of the year, as a result of lower refining margins and weaker crude prices.

The average realised price of oil fell 5% from Q1 18 to $57.42, although gas prices increased 8% in the same period to $5.37 per thousand standard cubic feet.

Chief executive Ben van Beurden said his firm had made a ‘strong start’ to the year. “The power of our brand, serving millions of customers every day, continues to be a differentiator.

“Our integrated value chain enabled our downstream business to deliver robust results despite challenging market conditions. The consistent financial performance across all our businesses provides confidence in meeting our 2020 outlook,” added the Dutchman.