with Agency report
01 February 2018, Sweetcrude, Lagos — Royal Dutch Shell on Thursday reported a net profit of $4.3 billion for fourth quarter 2017, a jump by 119 percent.
After years of cutting operational costs and investments due to the acquisition of BG Group in 2016, the company saw a huge rise in cash flow last year.
The figure more than doubles the net profit, $1.8billion reported for the same period of 2016.
According to its Chief Executive Ben van Beurden, the commendable feat was helped by the recent rally in oil and gas prices championed by the Organisation of the Petroleum Exporting Countries, OPEC, and its non-OPEC partners.
Net profit attributable to shareholders on a current cost of supplies (CCS) basis, used as a proxy for net profit and excluding identified items.
Reuters had earlier predicted a net profit of $4.24 billion, slightly lower than Shell’s actually declaration.
Beurden said the company had posted a “strong financial performance” during “a year of transformation.”
“Our relentless focus on value, performance, and competitiveness meant we were able to deliver $39 billion of cash flow from operations excluding working capital movements from our upgraded portfolio,” he added.
Shell’s full-year net profit, attributable to shareholders on a CCS basis and excluding one-off items, came in at $15.8 billion in 2017.
Brent crude prices have rallied, hitting $71 per barrel in January after prices fell from almost $120 a barrel in June 2014 due to low demand, a strong dollar and U.S. shale boom.